Net Profit of 14 Non-Life Insurance Companies Rises by 55 Percent

May 13, 2024 | 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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As of Chaitra’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 565.08 crores in the nine months of the current fiscal year 2080/81. This is 55 percent higher as compared to the same period of the previous fiscal year. In the first nine months of the fiscal year 2079/80, they had generated a total profit of Rs 364.41 crores.

 Nepal Insurance Company Limited (NICL) is at the number one spot in terms of profit with Rs 61.44 crores. It is followed by Himalayan Everest Insurance Limited (HEI) and Siddhartha Premier Insurance Company Limited (SPIL) with a profit of Rs 60.65 crores and Rs 59.71 crores respectively. On the other hand,   NLG Insurance Company Limited has the lowest profit of Rs 13.67 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 2080/81)

Net Profit (Rs. In Crores)

S.N Non-Life Insurance Companies In Nepal Q3, FY 2080/81 Q3, FY 2079/80 Percent Change
1 Nepal Insurance Company Limited 61.44 30.54 101.18
2 Himalayan Everest Insurance Limited 60.65 23.07 162.90
3 Siddhartha Premier Insurance Company Limited 59.71 28.48 109.66
4 Rastriya Beema Company Limited 51.63 68.64 -24.78
5 Sagarmatha Lumbini Insurance Limited 47.54 30.6 55.36
6 IGI Prudential Insurance Company Limited 46.76 16.63 181.18
7 The Oriental Insurance Company Limited 46.17 39.22 17.72
8 Prabhu Insurance Company Limited 39.14 11.61 237.12
9 Shikhar Insurance Company Limited 39.02 30.91 26.24
10 Neco Insurance Company Limited 37.74 38.39 -1.69
11 United Ajod Insurance Company Limited 27.42 18.77 46.08
12 Sanima GIC Insurance Company Limited 20.09 16.5 21.76
13 National Insurance Company Limited 14.1 -2.19
14 NLG Insurance Company Limited 13.67 13.24 3.25
Total  565.08 364.41 55.07

Source: Unaudited Q3 Report, FY 2080/81


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 2079/80

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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