Star Micro Insurance Reports Sharp Decline in Net Profit Despite Surge in Premium Income

Kathmandu – Star Micro Insurance Company Limited has reported a significant rise in net insurance premium income but suffered a sharp decline in profitability in the third quarter of the current fiscal year.

According to the company’s unaudited financial statement, it collected over Rs 35.7 million in net insurance premiums, marking a staggering 782.62 percent increase compared to the same period last year.

Despite the growth in premium income, the company’s net profit dropped by 89.10 percent, standing at Rs 1.016 million, down from Rs 9.322 million in the corresponding quarter of the previous fiscal year.

The company’s total income surged by 109.79 percent, rising from Rs 41.9 million to more than Rs 87.8 million. However, the total expenditure also escalated sharply by 202.52 percent, climbing from over Rs 28.5 million to Rs 86.4 million, significantly impacting the bottom line.

As of the end of the third quarter, Star Micro Insurance has a paid-up capital of Rs 525 million, special reserves of Rs 2.16 million, retained earnings of about Rs 443,000, and Rs 200,000 in its disaster fund.

The company’s earnings per share (EPS) also saw a steep fall, dropping from Rs 1.78 to just Rs 0.19. Meanwhile, the size of its non-life insurance fund has grown by 170.91 percent, increasing from Rs 59.4 million to over Rs 161 million.