Life Insurance Companies’ Total Expenses Reaches Rs 233.8 Billion, Nepal Life Tops the List

Kathmandu – Life insurance companies in Nepal have reported a sharp rise in total expenses, with the 14 life insurers currently in operation spending a combined Rs 233.9 billion in the last fiscal year (FY). This marks a 12.86 percent increase compared to the previous fiscal year’s expenditure of Rs 207.24 billion, according to data released by the Nepal Insurance Authority.

Among individual companies, Nepal Life Insurance recorded the highest expenditure, reaching Rs 64.2 billion in FY 2080/81. It was followed by LIC Nepal, which spent Rs 29.55 billion, and National Life Insurance, with Rs 27.42 billion. Other major spenders included Himalayan Life Insurance (Rs 23.83 billion), Suryajyoti Life Insurance (Rs 14.52 billion), the government-owned Rastriya Jeevan Beema Company (Rs 13.4 billion), and Asian Life Insurance (Rs 12.2 billion).

Additionally, Citizen Life Insurance spent Rs 8.77 billion, MetLife Nepal Rs 8.66 billion, Sanima Reliance Life Rs 8.31 billion, IME Life Rs 6.56 billion, Prabhu Mahalaxmi Life Rs 6.24 billion, Reliable Nepal Life Rs 6.21 billion, and Sun Nepal Life Rs 4.90 billion.

In terms of growth rate, Reliable Nepal Life Insurance topped the list, increasing its expenditure by 28.20 percent compared to the previous fiscal year. It was followed by Sun Nepal Life Insurance (26.40 percent) and IME Life Insurance (22.88 percent). Other insurers such as Citizen Life (21.95 percent), Suryajyoti Life (20.30 percent), Prabhu Mahalaxmi (19.87 percent), Nepal Life (16 percent), Sanima Reliance (15.81 percent), MetLife (13.42 percent), LIC Nepal (10.64 percent), National Life (9.10 percent), Asian Life (8.51 percent), and Himalayan Life (8.12 percent) also recorded expenditure growth.

The only exception was Rastriya Jeevan Beema Company, which reported a 6.07 percent reduction in total expenses.

The reported expenses include a wide range of operational costs such as salaries, allowances, agent commissions, vehicles, real estate, training programs, seminars, and other administrative overheads required to run the companies.