Kathmandu. The government-owned reinsurance company Nepal Reinsurance (Nepal Re, NRIC) has earned a net premium of Rs 2.49 billion in the first quarter of the current fiscal year. According to the company’s first quarterly statement, the non-life reinsurance business earned Rs 2.1269 billion and the life reinsurance business earned Rs 371.5 million.
Nepal Re, which id under pressure due to business competition when private sector Himalayan Re started operations, has achieved a minor increase of 7.02 percent in premiums in the first quarter. NRIC had earned a net premium of Rs 2.33 billion from the life and non-life insurance business in the corresponding period of the previous fiscal year.
The private sector’s Himalayan Re had earned Rs. 88 million in premiums in the first quarter of the current fiscal year and paid Rs 17.1 million net claims. Himalayan Re has been in operation since last mid-June.
Similarly, the company has earned Rs. 134.64 million from re-insurance commission and Rs. 106.6 million from investment loans and other income till mid-November of the current fiscal year. During this period, the company has paid Rs. 653.5 million towards non-life insurance and Rs. 274 million towards life insurance. Similarly, Rs. 966.5 million is yet to be paid for the claim.
As of mid-November, Nepal Re has earned a net profit of Rs. 241.8 million in the current fiscal year, including Rs. Net profit fell 38.83 percent. The company’s profits have plummeted due to claims payments, rising staff management costs, and declining business growth.
The company had earned a net profit of Rs 392.3 million from the non-life insurance business and Rs 54.5 million from the life insurance business in the same period of the last fiscal year. With a paid-up capital of Rs 11.65 billion, the company has a reserve fund of Rs 5.44 billion and an insurance fund of Rs 2.54 billion.