Himalayan Reinsurance Reports Third-Quarter Results: How Strong Is Its Financial Position?

Kathmandu – Himalayan Reinsurance Limited has published its financial statements for the third quarter of the current fiscal year (mid-July to mid-April). According to the report, the company recorded a net loss of NPR 44.3 million as of mid-April, compared to a net profit of NPR 989.3 million during the same period of the previous fiscal year.

The company’s net insurance premium income declined from NPR 4.18 billion in the corresponding period last year to NPR 4.04 billion this year. Likewise, its total income fell from NPR 5.20 billion to NPR 4.73 billion. The decline in revenue contributed significantly to the deterioration in profitability.

During the review period, total expenses increased sharply from NPR 3.72 billion to NPR 4.91 billion, according to the financial statements. Agent commission expenses, however, decreased slightly from NPR 883 million in the previous year to NPR 854.4 million this year.

The company’s earnings per share dropped from NPR 12.68 to a negative NPR 0.54. Its net worth per share stood at NPR 150.18, while the price-to-earnings ratio turned negative at 1,363.62 times.

Himalayan Reinsurance has a paid-up capital of NPR 10.87 billion. The company has maintained share premium reserves of NPR 3.12 billion, special reserves of NPR 2.02 billion, and catastrophe reserves of NPR 203.2 million.