Nepal Insurance Profit Falls 40%, EPS Continues to Weaken

Kathmandu — Nepal Insurance has published its third-quarter financial results for the current fiscal year, reporting a sharp decline in both profit and earnings per share.

According to the company’s financial statement, net profit dropped by 40% year-on-year to Rs 106 million during the review period. The company had earned Rs 178.4 million in net profit during the same period last fiscal year.

Earnings per share (EPS) also weakened significantly, falling to Rs 5.55 from Rs 12.58 recorded a year earlier.

The company’s income from investments and loans declined by 26% compared to the previous fiscal year.

During the review period, Nepal Insurance reported net earned premium income of Rs 768.7 million.

Retained earnings also recorded a steep decline, falling by 71% compared to the same period last year.

The company increased its catastrophe reserve fund by only 4% year-on-year. Given the relatively high level of risk exposure, the modest growth in the catastrophe reserve has raised concerns regarding the company’s risk management position.

Nepal Insurance reported a net worth per share of Rs 173.04.