Life Insurance Industry earns 3.8billion profit

Kathmandu: The life insurance industry has made a profit of Rs. 3.80 billion during last financial year. The 19 life insurance companies have managed to increase their net profit by 11.96 percent compared to the previous FY. This profit is based on the unaudited financial statements issued by the companies. Since the actual profits of life insurance companies are known only after the actual valuation, such profits have increased after the audit.

According to the unrevised financial statement, the old companies occupy the major pie of industry’s net profit. Among the 19 life insurance companies, six old companies except Rastriya Bima Sansthan have made good profit. One of the old companies, Beema Sansthan has the lowest profit.

During last FY too Nepal Life Insurance Company has earned the highest profit. Nepal Life has earned a net profit of Rs. 535.9 million. Thoughm the company’s profit has increased by only 1.05 percent compared to the previous year.

Similarly, National Life Insurance is the second most profitable company. The company has earned a net profit of Rs. 401.2 million last year. The company has been able to increase by only 2.55 percent compared to the previous year. In the third place, Surya Life has earned a profit of Rs 323.2 million. It improved its profit by 23 percent and rose to third place. The company has improved all its indicators following the activation of new management and new operators.

Prime Life, which is ranked fourth, has also earned a profit of Rs 308.2 million. The company’s profit rose 3.25 percent. Met Life, ranked fifth, has seen a 17.85 percent decline in profits this year. The company has earned a profit of Rs 269.4 million. Sixth-ranked Asian Life’s profit rose 39.85 percent. The company has earned a net profit of Rs. 254.3 million.

Among the new companies, Reliable Nepal Life Insurance Company is at the forefront in terms of profits. The company has managed to earn a profit of Rs. 225.9 million. The company has increased its profit by 5.39 percent this year.

Life Insurance Corporation, which has a fund of billions of rupees, is also far behind in profit making. The company earned a profit of only Rs. 199 million last year. Similarly, in the last fiscal year, Citizen Life contributed Rs 187.9 million, Prabhu Life Rs. 176 million, IME Life Rs 134 million, Union Life Rs. 130 million, Jyoti Life Rs. 130 million and Gurans Life Rs. 121.3 million. Sun Nepal Life has earned a profit of Rs. 106 million, Sanima Life Rs. 102.7 million, Mahalakshmi Life Rs 94 million, Reliance Life Rs 71 million and Rastriya Bima Sansthan Rs 56.2 million respectively.

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