Non-Life Insurance Companies Record 54.45% Drop in Net Profit in Q3 of FY 2081/82
Kathmandu – The profitability of Nepal’s non-life insurance sector has taken a significant hit, with companies posting a sharp decline in earnings during the third quarter (Shrawan–Chaitra) of the current fiscal year 2081/82.
According to financial disclosures, the cumulative profit of the 14 non-life insurance companies currently in operation stood at just Rs 2.41 billion in the first nine months of this fiscal year. This marks a steep decline of 54.45 percent compared to Rs 5.29 billion recorded in the same period of fiscal year 2080/81.
Out of the 14 non-life insurance companies, only two—Shikhar Insurance and Sanima GIC Insurance managed to increase their profits during the review period. Shikhar Insurance reported a 1.79 percent year-on-year rise, earning Rs 357 million, while Sanima GIC recorded a more robust growth of 16.21 percent, reaching Rs 233.5 million in net profit.
Despite the overall downturn, Siddhartha Premier Insurance remained the highest earner in the sector, generating Rs 453.6 million in profit in the nine-month period. However, this too reflects a 24.03 percent drop from the previous year’s corresponding period.
Rastriya Beema Company saw its profit fall by 23.37 percent to Rs 395.6 million, while Neco Insurance declined by 2.16 percent to Rs 369.3 million. Himalayan Everest Insurance and IGI Prudential Insurance faced steeper drops, with profits decreasing by 45.20 percent and 43.31 percent to Rs 332.3 million and Rs 265.1 million respectively. Similarly, Sagarmatha Lumbini Insurance’s profit plunged by 47 percent to Rs 251.9 million.
Furthermore, Prabhu Insurance posted a 48.84 percent decline in profit to Rs 200.2 million. Nepal Insurance decreased by 39.44 percent to Rs 178.4 million, and United Ajod Insurance reported a 57.65 percent drop to Rs 116.1 million.
Additionally, Oriental Insurance reported a net loss of Rs 138.3 million, while National Insurance recorded a substantial loss of Rs 728.1 million.