Renewal Premiums Rise 12.80%, Nepal Life and National Life Lead; IME Life Records Highest Growth
Kathmandu — Fourteen life insurance companies operating in Nepal collected a total of Rs 44.77 billion in renewal premiums by the mid-October (end of Ashoj) in the current fiscal year. This represents a 12.80 percent increase compared with the same period of the previous fiscal year.
Nepal Life Insurance further strengthened its leading position in renewal premium collection. The company collected Rs 11.58 billion during the first three months of the current fiscal year, compared with Rs 10.75 billion during the same period last year, marking a growth of 7.73 percent.
National Life Insurance ranked second in renewal premium collection, with Rs 5.25 billion collected by the mid-OCtober, up from Rs 4.37 billion during the corresponding period last year. This represents an increase of 20.18 percent. LIC Nepal ranked third with Rs 4.64 billion in renewal premiums.
State-owned Rastriya Jeevan Beema Company collected Rs 4.53 billion, while Himalayan Life Insurance collected Rs 4.46 billion and SuryaJyoti Life Insurance Rs 2.63 billion.
Asian Life Insurance collected Rs 2.11 billion, followed by Citizen Life Insurance with Rs 1.75 billion, Sanima Reliance Life Insurance with Rs 1.60 billion, IME Life Insurance with Rs 1.43 billion and MetLife with Rs 1.40 billion. Similarly, Prabhu Mahalaxmi Life Insurance collected Rs 1.29 billion, Reliable Nepal Life Insurance Rs 1.24 billion and Sun Nepal Life Insurance Rs 864.50 million.
In terms of growth, IME Life recorded the highest increase, with renewal premiums rising 31.16 percent compared with the previous fiscal year. Prabhu Mahalaxmi Life posted growth of 19.35 percent, Reliable Nepal Life 18.43 percent, Sanima Reliance Life 16.43 percent and Asian Life 16.42 percent.
Similarly, renewal premiums increased by 15.84 percent at SuryaJyoti Life, 14.66 percent at Himalayan Life, 13.78 percent at Sun Nepal Life, 10.59 percent at Citizen Life and 8.60 percent at MetLife. LIC Nepal recorded growth of 7.90 percent, while Nepal Life posted an increase of 7.73 percent.
Overall, life insurers recorded positive growth in renewal premium collection. Alongside first-year premiums generated from the sale of new policies, renewal premiums collected from existing policies that remain active are an important source of income for life insurance companies.