Net Profit Of Non-Life Insurance Companies Grows Slightly | 7 Companies Report Decline In Profit

May 17, 2022 | 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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At current, there are 20 non-life (general) insurance companies operating in Nepal. In the first nine months of the current fiscal year 2078/79, 18 general insurance companies have reported a total profit of Rs 325.63 crores. This is 1.77 percent higher as compared to the corresponding period of the previous fiscal year. In the fiscal year 2077/78, they had generated a total profit of Rs 319.98 crores until the third quarter. Out of these 18 companies, seven have reported a fall in profit while 11 companies have shown growth in the net profit.

Shikhar Insurance Company Limited (SICL) is at the number one spot in terms of profit with Rs 36.70 crores. It is followed by Rastriya Beema Company (RBCL) and Neco Insurance Company (NIL) with a profit of Rs 34.26 crores and Rs 34.26 crores respectively. On the other hand, General Insurance has the lowest profit of Rs 8.24 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 (Q3, FY 2078/79)

Net Profit (Rs. In Crores)

S.N Non-Life Insurance Companies In Nepal Q3, FY 2078/79 Q3, FY 2077/78 Percent Change
1 Shikhar Insurance Company Limited 36.7 36.33 1.02
2 Rastriya Beema Company 34.26 27 26.89
3 Neco Insurance Company Limited 34.26 35.09 -2.37
4 Sagarmatha Insurance Company Limited 28.71 28.54 0.60
5 Premier Insurance Company Limited 25.42 28.96 -12.22
6 Nepal Insurance Company Limited 17.94 17.01 5.47
7 Siddhartha Insurance Company Limited 17.34 17 2.00
8 NLG Insurance Company Limited 17.07 21.28 -19.78
9 IME General Insurance Company Limited 16.81 18.85 -10.82
10 Prabhu Insurance Company Limited 16.2 15.98 1.38
11 Prudential Insurance Company Limited 11.36 12.73 -10.76
12 Everest Insurance Company Limited 10.94 14.82 -26.18
13 Himalayan General Insurance Company Limited 10.69 9.1 17.47
14 Sanima General Insurance Company Limited 10.5 5.81 80.72
15 United Insurance Company Limited 10.23 5.24 95.23
16 Lumbini General Insurance Company Limited 9.55 13.77 -30.65
17 Ajod Insurance Company Limited 9.41 6.11 54.01
18 General Insurance Company Limited 8.24 6.36 29.56
19 Oriental Insurance Company Limited
20 National Insurance Company Limited
Total  325.63 319.98 1.77

Source: Unaudited Q3 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 has 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) has earned the highest net profit of Rs 54.06 crores in the fiscal year 2077/78. Shikhar Insurance occupies the second spot and has posted a net profit of Rs 47.57 crores. Similarly, Sagarmatha Insurance has 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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