Non Life Insurance : Leading Book Profit
Kathmandu. In the midst of all the chaos and collapse of the economy caused by COVID-19 and the government lockdown, Nepal’s insurance companies were seen to be unaffected and had better performance than previous years.
As of the previous year, life insurance companies earned a net premium of Rs 75.80 billion. On the other hand, it was not the case for non-life insurance companies; their net premiums have declined by 4.87 percent in the last fiscal year.
There are currently 20 non-life insurance companies operating in Nepal. Among them, National Insurance and Oriental Insurance have not yet published their financial statements. Out of the 18 companies that have published their financial statements, have earned the net premium of Rs 10.2 billion during the last fiscal year, which is 4.87 percent less than the previous fiscal year.
During the last fiscal year, Sanima General Insurance has been seen earning the highest net premium, which increased by 81.35 percent. Similarly, the premiums of United Insurance has increased by 29.38 percent, Everest Insurance has increased by 6.28 percent, Nepal Insurance has increased by12.35 percent, General Insurance has increased by 27.34 percent, IME General has increased by 0.49 percent and NECO Insurance has increased by 10.91 percent. Ajod Insurance has also increased its premium by 79.15 percent.
On the other hand, many companies were seen to have a sudden decrease in their premium. Out of the 18 companies The government-owned national insurance company, Rastriya Beema Company has had the biggest reduction in net premiums, having a reduction of 36.60 percent Similarly Shikhar Insurance, which had earned the highest net premium in the last fiscal year has had a reduction of 24.17 percent.
Similarly, Siddhartha Insurance has had a reduction of 1.74 percent, Premier Insurance has had a reduction of 13.90, Lumbini General has had a reduction of 11.36 percent, Prudential Insurance has had a reduction of 15.91 percent, Prabhu Insurance has had a reduction of 2.46 percent, NLG Insurance has had a reduction of 26.95 percent, Sagarmatha Insurance has had a reduction of 2.96 percent and Siddhartha Insurance has had a reduction of 1.74 percent.
Although the main source of income of insurance companies has reduced the premium itself, the net profit increased by 9.59 percent or Rs. 382.2 million and reached Rs. 4.36 billion. Out of the 18 companies, Everest Insurance has had the largest increase in its net profit in the last fiscal year by 217.64 percent.
Likewise, the net profit of Sanima General Insurance, which is planning for the IPO eviction, has also risen by 53.41 percent. Ajod Insurance, which has just launched an IPO, has increased its net income by 50.67 percent. Likewise, Premier Insurance’s net profit increased by 44.07 percent, Siddhartha Insurance increased by 40.06 percent and General Insurance Company increased by 39.78 percent.
The net profits of six companies have declined in the last fiscal year. Rastriya Beema Company declined by 18.27 percent, United Insurance net profits decreased by 62.97 percent, Shikhar Insurance declined by 4.82 percent, Himalayan General declined by percent, Lumbini General declined by 21.48 percent and Prabhu Insurance declined by 4.57 percent.