Kathmandu: Life insurance company’s net premium income has increased by 12.13 percent. Nineteen life insurance companies have earned Rs. 69.94 billion in the first two quarters of current fiscal year. The companies had earned net premium of Rs. 62.38 billion in the same period last fiscal year 2077/78.
Nepal Life Insurance (NLIC) has earned the highest premium of Rs. 18.11 billion till Q2 of current FY 2078/79. Nepal Life alone has a market share of 25.89 percent in terms of net premium income. It was 27.39 percent in the corresponding period of the previous year. The market share of NLIC been steadily declining for the past few years. Even though the share has decreased, the premium income has been increasing continuously.
Life Insurance Corporation(LICN) Nepal, which ranks second, has a growth rate of only 0.16 percent. The company has earned Rs. 9.58 billion in net insurance premiums in six months. Its market share too shrunk from 15.33 percent to 13.70 percent.
National Life Insurance, which ranks third, has earned Rs. 6.79 billion in insurance premiums in the first six months. The market share has also increased as the company’s premium income has increased by 24 percent.
The premium income of the Rastriya Beema Sansthan, which relies on the insurance of civil servants, has increased its net premium income by 6.41 percent. The company earned Rs. 6.4 billion in the second quarter. Market share shrunk to 8.65 percent from 9.11 percent.
Union Life Insurance Company is in 5th place with net premium income increase of 24 percent. With a market share of 5.40 percent, the union has earned Rs. 3.98 billion in six months.
Sixth place Asian Life’s (ALIC) insurance premium has increased by 8.22 percent. With a market share of 4.85 percent, Asian has earned Rs. 3.30 billion in net insurance premiums.
Citizen Life has been the most aggressive in raising insurance premiums. The company’s net premium income has increased by 76 percent. The market share has also increased while earning net insurance premium of Rs 2.42 billion during this period. The company has increased its market share from 2.20 percent last year to 3.47 percent.
Similarly, Prabhu Life is also involved in aggressive reforms. The company has earned Rs. 1 billion by increasing its premium income by 64 percent. The market share has also increased from 0.98 percent to 1.44 percent. The growth rate of Mahalaxmi Life, which has earned the lowest insurance premium, is 43 percent. The company has earned Rs. 679.1 million in insurance premiums during the period.
Compared to last year, the growth rate of life insurance company’s insurance fee has decreased this year. The growth rate, which was above 20 and 30 percent last fiscal year, has been limited to 12 percent this year.