Non-Life Insurers’ Profit Falls 47%, Only Three Companies Post Growth

Kathmandu — Nepal’s non-life insurance sector came under heavy pressure by the end of the third quarter of fiscal year 2025/26 A.D.  (2082/83 B.S.), with profits across most companies declining sharply as rising claim payments weighed on earnings.

According to the unaudited financial statements published by non-life insurance companies, the combined net profit of the industry fell to Rs 1.27 billion during the review period. In the corresponding period last fiscal year, the sector had reported a combined profit of Rs 2.41 billion.

Based on these figures, the overall profit of the non-life insurance industry declined by 47.23% year-on-year.

The sector’s profitability was significantly affected by widespread insurance claims arising from last year’s devastating floods and landslides triggered by continuous rainfall across the country. In addition, large-scale property and casualty losses caused during the Gen-Z protests held on Bhadra 23 and 24 further increased the claim burden on insurers.

Oriental Insurance emerged as the most profitable non-life insurer during the review period, earning Rs 306.6 million in net profit by mid-April 2026. The company had posted a loss of Rs 138.3 million during the same period last year.

The state-owned Rastriya Beema Company reported a net profit of Rs 288.9 million, although its earnings declined by 26.97% year-on-year.

Prabhu Insurance earned Rs 211.5 million in profit, while Neco Insurance posted Rs 163.9 million. Sagarmatha Lumbini Insurance reported Rs 133.2 million in profit, and Himalayan Everest Insurance earned Rs 110.5 million.

Similarly, Nepal Insurance reported a net profit of Rs 106 million, while Shikhar Insurance earned Rs 70.5 million. Sanima GIC Insurance posted Rs 51.3 million, and Siddhartha Premier Insurance earned Rs 40.1 million.

NLG Insurance reported a net profit of Rs 34.8 million, while the profit of IGI Prudential Insurance shrank dramatically to just Rs 4.3 million, representing a 99.83% decline year-on-year.

Meanwhile, United Ajod Insurance slipped into a loss of Rs 69.7 million during the review period. The company had reported a profit of Rs 116.1 million during the same period last year.

National Insurance also remained in the red, posting a loss of Rs 176.4 million. However, the loss narrowed compared to the Rs 728.1 million loss reported in the previous fiscal year.

Financial statements show that several companies recorded steep declines in profitability during the review period. Profit at Shikhar Insurance fell by 80.23%, while Sanima GIC Insurance saw a 78.01% decline. Siddhartha Premier Insurance reported a 91.15% drop in profit, NLG Insurance recorded a 71.78% decline, and Himalayan Everest Insurance saw its profit fall by 66.73%.