Oriental Insurance Reports Loss Despite Growth in Premium Income and Business Volume

Kathmandu – Oriental Insurance Company has published its unaudited financial report for the third quarter of the current fiscal year, revealing a mixed performance marked by an increase in business volume and premium income but a downturn in profitability.

According to the report released on Sunday, the company incurred a net loss of Rs 138.3 million in the period up to end of Chaitra. This marks a significant reversal from the same period last fiscal year, when the company had posted a profit of Rs 461.7 million.

Despite the loss, key indicators have shown positive movement. The company’s total business volume grew by 20.36 percent year-on-year. It collected insurance premiums worth Rs 1.62 billion, up from Rs 1.35 billion during the same period last fiscal year.

Claim payouts, however, surged during the review period, with Oriental Insurance settling claims worth Rs 765.7 million – a sharp 32.32 percent increase from the Rs 578.7 million paid out last year. The company’s expenses also saw a steep rise, more than doubling from Rs 593.8 million to Rs 1.23 billion – an increase of 102.71 percent.

The company holds an insurance fund of Rs 4.8 billion. It has allocated Rs 63.3 million to its disaster fund and maintains reserves of around Rs 1.6 billion under its special reserve fund. The company issued a total of 33,501 insurance policies during the review period.