Net Profit Of Non-Life Insurance Companies Rises By 44 Percent To Rs. 5.17 Arba
August 21, 2023 | Investopaper
Profit is the major indicator for any business operation. Higher profitability is associated with the success of the business venture. Net Profit is the income available for the distribution to the shareholders after deducting all the operating expenses along with taxes. Hence, it is essential that the company generates decent profit in order to provide an adequate return on investment to the shareholders.
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Top 5 Non-Life Insurance in Nepal
As of Ashad’s end 2080 BS, there are 14 non-life (general) insurance companies operating in Nepal. These general insurance companies have reported a total profit of Rs 517.85 crores. This is 44.71 percent higher as compared to the previous fiscal year. In the fiscal year 2078/79, they had generated a total profit of Rs 357.86 crores. Out of these companies, one has reported a fall in profit while 13 companies have shown growth in the net profit.
Rastriya Beema Company (RBCL) is at the number one spot in terms of profit with Rs 77.25 crores. It is followed by Neco Insurance Company Limited (NIL) and Sagarmatha Lumbini Insurance (SALICO) with a profit of Rs 55.31 crores and Rs 45.82 crores respectively. On the other hand, National Insurance Company has the lowest profit of Rs 20.18 crores.
The table below presents the net profit generated by the non-life insurance companies of Nepal.
Net Profit Of Non-Life Insurance Companies In Nepal (FY 2079/80)
Net Profit (Rs. In Crores)
| S.N | Non-Life Insurance Companies In Nepal | FY 2079/80 | FY 2078/79 | Percent Change |
| 1 | Rastriya Beema Company Limited | 77.25 | 47.34 | 63.18 |
| 2 | Neco Insurance Company Limited | 55.31 | 54.48 | 1.52 |
| 3 | Sagarmatha Lumbini Insurance Limited | 45.82 | 37.48 | 22.25 |
| 4 | Shikhar Insurance Company Limited | 40.31 | 27.5 | 46.58 |
| 5 | Himalayan Everest Insurance Limited | 40.06 | 14.06 | 184.92 |
| 6 | The Oriental Insurance Company Limited | 40.01 | 29.08 | 37.59 |
| 7 | Nepal Insurance Company Limited | 40 | 36.4 | 9.89 |
| 8 | Siddhartha Premier Insurance Company Limited | 36.35 | 36.04 | 0.86 |
| 9 | Sanima GIC Insurance Company Limited | 28.01 | 14.49 | 93.31 |
| 10 | IGI Prudential Insurance Company Limited | 26.1 | 17.12 | 52.45 |
| 11 | Prabhu Insurance Company Limited | 24.15 | 18.61 | 29.77 |
| 12 | NLG Insurance Company Limited | 24.1 | 23.86 | 1.01 |
| 13 | United Ajod Insurance Company Limited | 20.2 | 13.96 | 44.70 |
| 14 | National Insurance Company Limited | 20.18 | -12.56 | -260.67 |
| Total | 517.85 | 357.86 | 44.71 |
Source: Unaudited Q4 Report, FY 2078/79
Note: Net profit of FY 2078/79 is audited while the net profit of FY 2079/80 is unaudited.
Net Profit Of Non-Life Insurance Companies In Nepal (FY 2078/79)
Net Profit (Rs. In Crores)
| S.N | Non-Life Insurance Companies In Nepal | FY 2078/79 | FY 2077/78 | Percent Change |
| 1 | Neco Insurance Company Limited | 55.01 | 50.45 | 9.04 |
| 2 | Rastriya Beema Company | 47.34 | 36.03 | 31.39 |
| 3 | Sagarmatha Insurance Company Limited | 40.22 | 44.06 | -8.72 |
| 4 | Shikhar Insurance Company Limited | 40.14 | 31.13 | 28.94 |
| 5 | Premier Insurance Company Limited | 36.04 | 37.37 | -3.56 |
| 6 | Nepal Insurance Company Limited | 32.89 | 30.64 | 7.34 |
| 7 | Siddhartha Insurance Company Limited | 32.1 | 35.01 | -8.31 |
| 8 | Prabhu Insurance Company Limited | 23.76 | 23.32 | 1.89 |
| 9 | NLG Insurance Company Limited | 23.45 | 20.56 | 14.06 |
| 10 | Lumbini General Insurance Company Limited | 18.73 | 16.18 | 15.76 |
| 11 | IME General Insurance Company Limited | 17.12 | 22.3 | -23.23 |
| 12 | Prudential Insurance Company Limited | 15.71 | 11.97 | 31.24 |
| 13 | Himalayan General Insurance Company Limited | 14.79 | 11.05 | 33.85 |
| 14 | Sanima General Insurance Company Limited | 14.49 | 7.29 | 98.77 |
| 15 | United Insurance Company Limited | 13.96 | 10.52 | 32.70 |
| 16 | Ajod Insurance Company Limited | 11.89 | 10.2 | 16.57 |
| 17 | General Insurance Company Limited | 11.2 | 9 | 24.44 |
| 18 | Everest Insurance Company Limited | 7.05 | 17.46 | -59.62 |
| 19 | Oriental Insurance Company Limited | – | – | – |
| 20 | National Insurance Company Limited | – | – | – |
| Total | 455.89 | 424.54 | 7.38 |
Source: Unaudited Q4 Report, FY 2078/79
Oriental Insurance and National Insurance are the branches of foreign insurance companies. Hence, the profit of these two companies is not included.
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Net Profit Of Non-Life Insurance Companies In Nepal (FY 2077/78)
The profit of non-life insurance companies increased in the fiscal year 2077/78 as compared to the previous fiscal year. Among the 20 non-life (general) insurance companies, Neco Insurance Company (NIL) earned the highest net profit of Rs 54.06 crores in the fiscal year 2077/78. Shikhar Insurance occupied the second spot and posted a net profit of Rs 47.57 crores. Similarly, Sagarmatha Insurance generated a net profit of Rs 45.15 crores.
The table below presents the list of general (non-life) insurance companies operating in Nepal along with their net profit in the fiscal year 2077/78.
Note: The profit numbers are based on the unaudited fourth quarterly report of the fiscal year 2077/78.
| S.N | Non-Life Insurance Companies In Nepal | Net Profit (Rs In Crores) |
| 1 | Neco Insurance Company Limited | 54.06 |
| 2 | Shikhar Insurance Company Limited | 47.57 |
| 3 | Sagarmatha Insurance Company Limited | 45.15 |
| 4 | Premier Insurance Company Limited | 37.37 |
| 5 | Rastriya Beema Company | 36.03 |
| 6 | Nepal Insurance Company Limited | 34.87 |
| 7 | Siddhartha Insurance Company Limited | 30.23 |
| 8 | Prabhu Insurance Company Limited | 26.66 |
| 9 | NLG Insurance Company Limited | 25.22 |
| 10 | IME General Insurance Company Limited | 23.22 |
| 11 | Everest Insurance Company Limited | 20.38 |
| 12 | Prudential Insurance Company Limited | 17.69 |
| 13 | Lumbini General Insurance Company Limited | 17.24 |
| 14 | Himalayan General Insurance Company Limited | 15.55 |
| 15 | Ajod Insurance Company Limited | 9.52 |
| 16 | General Insurance Company Limited | 9 |
| 17 | Sanima General Insurance Company Limited | 8.62 |
| 18 | United Insurance Company Limited | 7.52 |
| 19 | Oriental Insurance Company Limited | – |
| 20 | National Insurance Company Limited | – |
Source: Unaudited Fourth Quarterly Report, FY 2077/78
Profit In Fiscal Year 2076/77
| S.N | Non-Life Insurance Companies In Nepal | Net Profit (Rs In Crores) |
| 1 | Rastriya Beema Company | 63.86 |
| 2 | Shikhar Insurance Company Limited | 45.02 |
| 3 | Neco Insurance Company Limited | 44.85 |
| 4 | Oriental Insurance Company Limited | 37.26 * |
| 5 | Sagarmatha Insurance Company Limited | 35.82 |
| 6 | Premier Insurance Company Limited | 35.39 |
| 7 | Siddhartha Insurance Company Limited | 30.02 |
| 8 | Prabhu Insurance Company Limited | 25.4 |
| 9 | Nepal Insurance Company Limited | 23.65 |
| 10 | IME General Insurance Company Limited | 21.03 |
| 11 | Lumbini General Insurance Company Limited | 20.41 |
| 12 | National Insurance Company Limited | 20.35 |
| 13 | NLG Insurance Company Limited | 20.1 |
| 14 | Everest Insurance Company Limited | 19.31 |
| 15 | Himalayan General Insurance Company Limited | 17.31 |
| 16 | Prudential Insurance Company Limited | 14.16 |
| 17 | Ajod Insurance Company Limited | 6.21 |
| 18 | Sanima General Insurance Company Limited | 5.56 |
| 19 | General Insurance Company Limited | 5.06 |
| 20 | United Insurance Company Limited | 3.41 |
Source: Unaudited Fourth Quarterly Report, FY 2076/77
* Since the profit of Oriental Insurance is of the third quarter of fiscal year 2076/77. Hence, it may not be comparable with other insurance companies.
National Insurance and Oriental Insurance are the branches of foreign insurance companies.
Note:
The above figures are based on the un-audited quarterly report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.
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