Sagarmatha Lumbini Insurance Reports 47% Drop in Net Profit Despite Modest Income Growth

Kathmandu — Sagarmatha Lumbini Insurance Company Limited (Salico) has reported a significant decline in its net profit for the third quarter of the current fiscal year. According to the financial statement published today, the company earned a net profit of Rs 251.9 million up to end of Chaitra, marking a sharp 47 percent drop from Rs 475.4 million recorded during the same period last fiscal year.

The company’s total income grew marginally by 1.55 percent from Rs 2.05 billion to Rs 2.09 billion. However, there was a steep 25.44 percent rise in total expenses, which climbed from Rs 1.38 billion to Rs 1.73 billion.

Salico’s net premium income also declined, falling by 5.92 percent to Rs 1.29 billion, compared to Rs 1.37 billion in the previous fiscal year.

The insurance company has a paid-up capital of Rs 2.62 billion, with Rs 214.1 million allocated to its disaster fund and Rs 626.1 million in its reserve fund.

Earnings per share (EPS) have dropped by Rs 11.36 to Rs 12.81, while the company’s net worth per share stands at Rs 248.82.