Nepal Life Insurance Limited Reports Decline in Profit, Releases Q2 Financial Report

Nepal Life Insurance Limited (NICL) has published its unaudited financial results for the second quarter of the current fiscal year. According to the report, the company’s net profit has decreased by 28.03% compared to the same period in the previous fiscal year.

In the review period, the insurance company earned a net profit of NPR 336.9 million, which is a decrease from NPR 468.1 million in the same period last year. This decline in profit marks a significant reduction in the company’s earnings.

However, there are positive aspects as well. The company’s earned premiums have increased by 15.37%, and total revenue has grown by 7.09%. Similarly, claim payments increased by 8.19%, and total expenses rose by 9.02%.

Despite the decline in profit, the company’s earnings per share have also dropped, standing at NPR 7.11, a decrease of NPR 4.30 from the same period last year.

As of mid-January, the price-to-earnings ratio of the company is 108.19 times, and its net worth per share is NPR 124.86.

The insurance company has a paid-up capital of NPR 9.48 billion, with a disaster fund of NPR 1.53 billion, retained earnings of NPR 677.6 million, and other equity worth NPR 149.2 million.

While the report highlights the stability of the insurance industry, it also indicates that the company needs to develop strategies for future profit growth in the coming years.