Kathmandu. While the first premium income(FPI) of old insurance companies Nepal Life, LIC Nepal, Gurans Life and Prime Life has shrunk ,there has been a significant improvement in FPI of all the new life insurance companies except Union Life during the first five months( Mangsir end) of current fiscal year 2078/79.
Compared to the first five months of the last fiscal year(FY), the growth rate the old life insurance companies has started declining in the first five months of the current fiscal year. Compared to the FPI of first five months last FY 2077/78, the FPI of life insurance industry has increased only by 3 percent during the first five months of current FY 2078/79.
During the same period, LIC Nepal’s first premium income has shrunk by 36 percent. The company has earned a total of Rs 933.8 million in the first five months of the current FY while it was Rs. 1.46 billion in the corresponding period last FY.
Similarly, Nepal Life’s FPI has shrunk by 17 percent to Rs. 2.98 billion by Mangsir(mid-November). The FPI of Gurans Life has declined by 37 percent to Rs. 280 million. FPI of Prime Life has also been limited to Rs 560 million from Rs 570 million.
Some of the older life insurance companies have seen significant improvement in their FPI. During this period, the business of National Life has improved by 30 percent. National Life has managed to earn Rs. 1.85 billion FPI during the evaluation period. In terms of amount, Surya Life has improved by 19 percent, Met Life by 26 percent, Rastriya Bima Sansthan by 10 percent and Asian Life by 3 percent.
Among the new life insurance companies, Union Life alone saw a decline in FPI by remarkable point of 21 percent. The company has earned Rs. 990 million in the first five months of the current FY.
Among new companies, Prabhu Life has improved FPI by whooping growth of 105 percent and earned Rs. 490 million while Citizen Life has earned Rs.1.5 million with a growth of 97 percent. Citizen Life has earned R.s 1.5 billion FPI. IME Life has improved its business by 19 percent, Jyoti Life by 12 percent, Sun Nepal by 4 percent, Reliance and Reliable Nepal by 23 percent, Sanima by 10 percent and Mahalakshmi Life by 16 percent.