SALICO Sees Revenue Growth Despite Sharp Drop in Profit

Kathmandu — Sagarmatha Lumbini Insurance Company Limited (SALICO) reported a net profit of NPR 133.2 million in the third quarter of fiscal year 2025/26, according to its unaudited financial statement. The company had posted a net profit of NPR 251.9 million during the same period last fiscal year, indicating a decline of nearly 47%.

Although profitability weakened, the company recorded growth in its core insurance business. Net insurance premium income increased to NPR 1.47 billion during the review period, compared to NPR 1.29 billion in the corresponding period last year.

Gross written premium also edged higher, reaching NPR 2.97 billion, up from NPR 2.94 billion collected during the same period of the previous fiscal year.

Total income rose marginally to NPR 2.11 billion from NPR 2.09 billion a year earlier. However, a sharp increase in expenses weighed heavily on earnings. The company’s total expenses climbed to NPR 1.92 billion, compared to NPR 1.73 billion in the same period last year.

As a result, earnings per share (EPS) declined from NPR 12.81 to NPR 6.77. Net worth per share stood at NPR 233.64, while the company’s price-to-earnings (P/E) ratio was recorded at 89.63 times.

SALICO’s total assets increased to NPR 14.91 billion, up from NPR 14.72 billion at the end of the previous fiscal year. The company’s paid-up capital stands at NPR 2.62 billion. It has maintained NPR 2.55 billion in special reserves, NPR 226.7 million in the catastrophe reserve fund, and NPR 188.1 million in general reserves. The company’s solvency ratio stood at 3.31 times during the review period.