Kathmandu. NECO Insurance Company has left Shikhar Insurance Company behind in terms of net premium and income. In the last fiscal year 2077/78, NECO Insurance Company has become market leader in term of premium and profit earning.
It has surpassed Shikhar Insurance Company, which has been remaining the market leader in terms of net insurance premium and net profit for decades.
NECO Insurance has managed to increase its profit by 17.37 percent last year. NECO, which was in the first place in the profit previous financial year, had made a profit of Rs. 460.6 million. The company made a profit of Rs 540.6 million last financial year.
NECO has been performing better since CEO Ashok Kumar Khadka took the charge of the company.Being a young and enthusiastic professional, Khadka has very sound knowledge of both banking and insurance in Nepal.
CEO Khadka admitted that the company’s achiement is all made possible through customer satisfaction oriented business strategies.
Even during the Covid 19 epidemic, non-life insurance companies managed to increase their overall net premium income by 18 percent and their net profit by 4.02 percent. Due to prohibitory order to control spread of Covid19 ,business other than the most urgent kind of business remained almost at a standstill. Despite this, non-life insurance companies have been able to increase their profits and business size.
Shikhar Insurance, which is in the second place, has also managed to increase its profit by 5.69 percent last year. Shikhar has earned a profit of Rs. 475.7 million. Everest, which is in the third place, has also increased its profit by 18.57 percent and earned Rs. 451.5 million profit.
NECO Insurance has highest the net insurance premiums income. The company has earned net insurance premium of Rs.1.63 billion in the last fiscal year. In the previous fiscal year, it was Rs 1.27 billion. In the non-life insurance business, NECO has a market share of 14.06 percent.
Similarly, Shikhar Insurance, which is in the second place, has also managed to increase its own premium income by 9 percent. Shikhar has managed to earn Rs 1.29 billion in own premiums.Its market share in the non-life insurance business alone is 10.97 percent.
Sagarmatha Insurance, which is in the third place, has also succeeded in increasing its net premium income by 25 percent in the last fiscal year. Everest has managed to earn Rs 1.23 billion in own premiums. Everest has a market share of 10.44 percent in the non-life insurance business. The three largest non-life insurance companies alone have a total market share of 35.47 percent.
Of the three new non-life insurance companies, Ajod is the most aggressive. Ajod has managed to increase its own premium income by 26 percent last year. The company has earned Rs. 383.8 million in net premiums during the period. The company is ranked 14th.
Companies shareholders will have to wait a while to get dividends from those profits. As non-life insurance companies have already prepared their financial statements under the NFRS system last year, they will be able to hold a general meeting soon this year. Due to some technical work including actual assessment, it can be estimated that non-life insurance companies will be able to hold a general meeting by April.