Nepal Re Posts Rs. 5.84 Billion Loss as Claims Surge and Earnings Decline

Kathmandu — State-owned Nepal Re-insurance Company Limited has reported a net loss of Rs. 5.84 billion for the third quarter of the last fiscal year, marking a sharp reversal from the profit recorded a year earlier.

According to the company’s third-quarter financial statements released on Thursday, Nepal Re had posted a net profit of Rs. 548.2 million during the same period of the previous fiscal year. The company slipped into a substantial loss after claims expenses surged while overall income declined.

During the review period, net insurance income fell by 18 percent to Rs. 5.8375 billion, down from Rs. 7.12 billion a year earlier. Total income also declined by 22 percent, dropping from Rs. 8.5717 billion to Rs. 6.8116 billion.

The company’s net claims incurred more than doubled, rising from Rs. 5.1788 billion to Rs. 10.8345 billion. As a result, total expenses climbed sharply to Rs. 12.5219 billion, compared with Rs. 7.7885 billion in the corresponding period of the previous year.

Nepal Re’s paid-up capital stood at Rs. 13.4221 billion. The company reported Rs. 4.9216 billion in its special reserve and Rs. 427.6 million in its catastrophe reserve. However, its retained earnings remained in deficit at negative Rs. 4.9065 billion.

The company’s earnings per share deteriorated from a positive Rs. 4.08 to negative Rs. 43.51, while its net worth per share stood at Rs. 109.20.

Former Chief Executive Officer Surendra Thapa, who has been suspended from the company, is currently facing legal proceedings after the Central Investigation Bureau (CIB) filed a money laundering case against him. The allegations remain subject to judicial process. Any determination of wrongdoing will ultimately depend on the outcome of the court proceedings.