Sagarmatha Lumbini Insurance Company Reports Loss in First Quarter of Current Financial Year

Kathmandu: Sagarmatha Lumbini Insurance Company Limited has published its unaudited financial statement for the first quarter of the current financial year, revealing a decline in profitability. The company reported a loss of Rs. 8.95 million during this period, marking a negative shift compared to the same period in the previous financial year.

The financial condition of the company, which once prided itself on being a top performer in the insurance sector, appears to have deteriorated. Along with the decline in profits, the company’s earnings per share (EPS) also turned negative, falling from Rs. 8.70 per share in the previous year to a negative Rs. 13.65 per share this year.

Despite the loss, the company did experience a growth in its total insurance fee earnings, which increased by 31.42 percent, reaching Rs. 770 million for the quarter. However, the company’s net insurance fee income remains lower at Rs. 311.8 million, reflecting the pressures it is facing.

The company also reported an increase in the outstanding claims, which now total Rs. 7.30 billion, marking a significant rise compared to the previous year. The rise in unpaid claims highlights the challenges Sagarmatha Lumbini Insurance is facing in terms of liquidity and financial stability.

Sagarmatha Lumbini Insurance holds a paid-up capital of Rs. 2.62 billion and has accumulated reserves of Rs. 194.5 million in its disaster fund and Rs. 416.1 million in its general reserve fund.