Shikhar Insurance Company Limited Reports Losses, Publishes Financial Statement

Shikhar Insurance Company Limited has published its unaudited financial results for the second quarter of the current fiscal year. According to the report, the company has reported a negative profit.

In the previous fiscal year, by the end of December, the company made a net profit of NPR 25.73 million, while in the same period of the current fiscal year, the company has faced a loss of NPR 4.47 million.

The financial report shows that the company successfully conducted business worth over NPR 78 million by the end of December. Compared to the previous year, when the company earned NPR 63.76 million in premium income, the current year’s income has increased by 22.41%, reaching NPR 78.05 million.

During the review period, the company’s total income increased by 5.71%, from NPR 116.33 million to NPR 122.98 million, while its total expenses grew by 62.15%, from NPR 79.78 million to NPR 129.93 million. The amount paid as commission to agents also increased by 19.82%, from NPR 26.8 million to NPR 32.2 million.

In terms of earnings per share, the company’s EPS has decreased from NPR 19.39 to a negative NPR 3.06. However, the solvency ratio has increased from 3.67% to 4.74%. The net worth per share stands at NPR 196.64.

With a paid-up capital of NPR 2.93 billion, the company has accumulated NPR 1.91 billion in special reserves, NPR 161.1 million in disaster reserves, and NPR 165.7 million in reserve funds. As of December, the company has made investments totaling NPR 4.66 billion.

In conclusion, while Shikhar Insurance Company has faced a decline in profits during the current fiscal year, it has shown improvements in cost management and solvency ratio, indicating potential for future growth and financial stability.