Kathmandu:The business growth of life insurance companies is increasing every year. As new and old life insurance companies are aggressive in expanding their business, the premium income has increased by 29.46 percent on last financial year as well.
New insurance companies are the most aggressive in terms of business expansion. Although the highest increase in percentage is seen in the new companies, in terms of amount, the old insurance companies are in the forefront in terms of volume.
As in previous years, this year too, Nepal Life is in the forefront. Nepal Life has earned insurance premium of Rs. 31.96 billion in the fiscal year 2077/78. The company has managed to improve by 16.93 percent compared to the previous fiscal year 2076/77.
Similarly, the second-ranked Life Insurance Corporation has also managed to improve its net premium income by 14.90 percent. The company has earned Rs 17.04 billion in insurance premiums during the period. National Life, ranked third, has become more aggressive in business expansion this year. The company has earned Rs. 12.11 billion by increasing its net premium income by 32.95 percent. However, in the Fiscal Year 2076/77, the total is only Rs. 9.11 billion. Rastriya Bima Sansthan, which has been insuring the lives of Civil Servant, has managed to earn Rs. 7.58 billion in insurance premiums last year.
The new life insurance company Union Life has been competing with the old insurance companies in business expansion. Union ranks 5th in terms of business volume. The fifth-ranked union earned Rs. 6.58 billion in net premiums last year. The company had earned Rs 4.53 billion in the corresponding period of the previous year. Union has overtaken old life insurance companies Asian Life, Surya Life, Met Life, Prime Life and Gurans Life.
Citizen Life is the second most aggressive company among the new companies. Citizens have improved their business by 81 percent. Sanima Life and Mahalakshmi Life have joined the Billionaire Club this year. Sanima Life is the largest expanding business in terms of percentage. Sanima Life has collected Rs 1.93 billion by increasing its own premium income by 133 percent. The youngest life insurance company Mahalakshmi Life has also collected Rs 1.08 billion by increasing its net premium income by 25 percent.
During this period, Asian Life collected Rs. 5.80 billion, Met Life Rs 4.83 billion, Surya Life Rs 4.18 billion, Prime Life Rs 3.98 billion, Gurans Life Rs 3.63 billion, Citizen Rs 3.43 billion, Jyoti Life Rs 3 billion and Reliable Nepal Life had Rs 2.95 billion net premium income. Similarly, IME Life Rs 2.73 billion, Reliance Life Rs 2.51 billion, Prabhu Life Rs 400 million net premium income.