Non-Life Insurers See Retained Earnings Drop 34% as Only Three Firms Post Gains

Kathmandu — Retained earnings at Nepal’s non-life insurance companies fell sharply in the last fiscal year, with the sector’s combined retained earnings dropping 34.36 percent from a year earlier.

According to fourth-quarter financial statements for fiscal year 2025/26 (2082/83), the companies’ combined retained earnings fell to NPR 3.40 billion from NPR 5.17 billion the previous year. Retained earnings represent profits a company keeps after dividends and other distributions, and can be used for business expansion, risk management, capital enhancement and other corporate needs.

Rastriya Beema Company continued to hold the largest retained earnings position, with its balance rising nearly 5 percent to NPR 2.60 billion from the previous year. United Ajod Insurance and Oriental Insurance were the only other companies to record improvements.

United Ajod’s retained earnings grew around 24 percent to NPR 143.9 million, while Oriental Insurance turned around a loss of NPR 63 million a year earlier to post retained earnings of NPR 45.5 million.

Among the rest, Siddhartha Premier Insurance held retained earnings of NPR 548.2 million, followed by Neco Insurance at around NPR 365 million, Sagarmatha Lumbini Insurance (SALICO) at NPR 347.9 million, and Himalayan Everest Insurance at NPR 274.7 million.

Further down the list, Prabhu Insurance reported retained earnings of NPR 104.1 million, Sanima GIC Insurance NPR 98.7 million, Shikhar Insurance NPR 79.8 million, Nepal Insurance NPR 57.3 million, IGI Prudential Insurance NPR 18.4 million, and NLG Insurance NPR 11.7 million.

Despite holding positive balances, most companies saw steep year-on-year declines. IGI Prudential and NLG Insurance recorded the sharpest falls, with retained earnings dropping around 88 percent and 87 percent, respectively. Prabhu Insurance’s retained earnings fell 75 percent, while Nepal Insurance and Shikhar Insurance posted declines of 64 percent and 62 percent.

Neco Insurance and Siddhartha Premier Insurance saw their retained earnings drop by 52 percent and 45 percent, respectively, while Sanima GIC recorded a 42 percent decline. SALICO and Himalayan Everest Insurance saw comparatively smaller declines of 24.90 percent and 8.88 percent.

National Insurance, which has Indian investment, remains under significant financial pressure, with its accumulated loss widening from around NPR 1.10 billion a year earlier to NPR 1.30 billion.

Overall, only three companies improved their retained earnings in the past year, while the remaining 11 either recorded lower retained earnings or wider losses, pointing to continued financial and business challenges across Nepal’s non-life insurance sector.