Kathmandu: As of the first quarter of FY 2078/79,the profit of life insurance companies has decreased by 14.17 percent as compared to the same period of last fiscal year
The profit of five out of 19 life insurance companies has sharply decreased. According to the quarterly financial statements of Q1 published by the companies, the profit of National Life, Met Life(Alico) , Guransh Life, LIC Nepal and Nepal Life has declined.
19 life insurance companies have earned a total profit of Rs. 1.83 billion during the Q1 of current fiscal year. . However, as the profits of life insurance companies fluctuate during the actuarial valuation, the profits published in the financial statements do not remain as final profits.
In terms of percentage, Sun Nepal Life has increased its profit by 97 percent compared to the same period last fiscal year. Prime Life Insurance Company has made a profit of Rs.122.5 million. The company’s profit has increased by 1.49 percent compared to the Q1 of last fiscal year.
Surya Life has earned a net profit of Rs. 113.5 million. Asian Life has earned Rs 96.2 million, an increase of 2 percent over the same period last fiscal year. Jyoti Life Insurance Company has earned a net profit of Rs 92.2 million.
During the period under review, Reliable Nepal Life has earned Rs. 74.5 million profit. Citizen Life Rs. 62.2 million, Sun Nepal Life Rs. 52 million, Sanima Life Rs. 43.8 million, IME Life Rs. 43.6 million, Reliance Life Rs. 40.15 mllion. Union Life has earned a profit of Rs 34.4 million, Prabhu Life Rs 33.1 million, Mahalakshmi Life Rs 25.40 million and Rastriya Bima Sansthan Rs. 15.6 million in Q1.
Profits of five companies declined:
During this period, the profit of National Life has decreased by 26 percent as compared to the same period of last fiscal year. The company has earned a profit of Rs. 86.7 million during the period.
Mete Life’s profit is down by 10 percent compared to last fiscal year. The company has earned a profit of Rs. 67.5 million during the period. Guransh Life’s profit fell by 4 percent to Rs. 49 million during the period. LIC Nepal’s profit has declined by 44 percent compared to the same period last fiscal year. Nepal Life’s profit has sharply declined by 96 percent.
The regulatory compliance for the future provisioning has affected the profit of the insurance companies. Each life insurers are supposed to make a provision of 20 percent of profit for future bonus.