Kathmandu, Aug 17: Nepal’s non-life insurance sector suffered a sharp fall in profitability in the last fiscal year, with the combined net profit of 14 companies dropping 39.21 per cent year on year.
According to their financial statements, the companies posted a combined net profit of Rs 2.79 billion in fiscal year 2025/26, down from Rs 4.59 billion a year earlier.
Oriental Insurance recorded the biggest turnaround, moving from a loss of Rs 117.6 million to a net profit of Rs 490.4 million. National Insurance, however, remained in the red. Its loss narrowed from Rs 150.7 million to Rs 131 million, making it the only loss-making company among the 14 insurers.
Prabhu Insurance was the only profitable company to post growth. Its net profit rose 19.71 per cent to Rs 246.4 million from Rs 205.8 million.
SALICO, or Sagarmatha Lumbini Insurance, posted the second highest profit at Rs 375.6 million, despite a 32.75 per cent decline. Rastriya Beema Company ranked third with Rs 344.4 million, down 19.46 per cent.
Himalayan Everest Insurance earned Rs 337.8 million, while Siddhartha Premier and Neco Insurance posted profits of Rs 326.8 million and Rs 288.3 million respectively. Their profits fell 36.53 per cent, 56.75 per cent and 50.19 per cent.
IGI Prudential recorded the steepest decline. Its profit plunged 98.89 per cent, from Rs 364.9 million to just Rs 4.04 million.
Shikhar Insurance’s profit fell 71.22 per cent to Rs 130 million, while Sanima GIC’s dropped 61.39 per cent to the same amount. Nepal Insurance posted a net profit of Rs 127.5 million, down 59.69 per cent.
United Ajod’s profit declined 64.55 per cent to Rs 63 million, while NLG Insurance earned Rs 57.8 million, a 62.31 per cent fall from the previous year.
The figures point to a broad-based decline across Nepal’s non-life insurance industry, with most companies recording substantial drops in earnings despite remaining profitable.
People’s News Monitoring Service
Login to add a comment