Salico Reports Rs 403.2 Million Profit, Insurance Fund Nears Rs 7 Billion

Kathmandu — Sagarmatha Lumbini Insurance Company Limited (Salico) has reported a net profit of Rs 403.2 million for the end of the fiscal year 2081/82, reflecting a 12.53% decline compared to Rs 460.9 million recorded in the previous fiscal year. The company’s earnings per share fell from Rs 23.44 to Rs 15.37, while net worth per share remained steady at Rs 239.12.

Despite the drop in profit, Salico’s core business performance showed notable growth. The net insurance premium surged by 22.86% to Rs 2.11 billion, up from Rs 1.72 billion a year earlier. Total income also rose by 12.50%, reaching Rs 3.11 billion from Rs 2.77 billion in the previous fiscal year.

However, expenses increased at a faster pace, climbing 17.47% to Rs 2.54 billion, compared to Rs 2.16 billion the year before. A significant rise was seen in agent-related expenses, which jumped nearly 75% to Rs 66.8 million from Rs 38.2 million.

As of the end of the fiscal year, Salico’s paid-up capital stands at Rs 2.62 billion. The company also holds Rs 2.55 billion in special reserves, Rs 229.3 million in its catastrophe fund, and Rs 366.5 million in the reserve fund.

The insurance fund, a key measure of financial strength, expanded by 4.13% to Rs 6.88 billion, compared to Rs 6.61 billion in the previous year.