Kathmandu: Life insurance companies have managed to earn Rs. 38 billion first premium income(FPI) during last fiscal year 2078/79. When life insurance companies earn Rs. 1.39 billion total premium income(TPI), the share of the FPI remained 27.34 percent.
New insurance companies are seen to be more aggressive than the old ones. in terms of earning the FPI. Old companies dominate the total including first singles and renewals. But on the FPI, the new insurance companies like Union Life, Citizen Life and Reliable Life have made a remarkable presence.
Among the old insurance companies, Guransh Life is at the tail end. Mahalakshmi Life, which earns the lowest insurance fee, has also left Guransh Life behind. The business of Guransh Life is in downward trend immediately after its merger agreement with Prime Life and Union Life.
Nepal Life has the highest FPI of Rs.6.68. Nepal Life, which occupies 25 percent of the market share in terms of total insurance premium, has 17 percent share in the FPI. National Life, which is in second place, has Rs.4.25 billion FPI. National Life is in third place in TPI business. LIC Nepal, which is in the third position, has earned Rs. 2.96 billion FPI in the last financial year. Its market share is only 7.79 percent.
Union Life, which is in the fourth position, has earned Rs. 2.51 billion FPI. It’s market share is 6.62 percent. Citizen Life, which is in the fifth position, has managed to earn Rs. 2.34 billion. Last year, Union Life, Citizen Life and Reliable Nepal Life appeared to be the most aggressive in business expansion. Reliable Nepal’s market share is 6.12 percent while FPI is Rs. 2.32 billion. Asian Life, which is number seven, has a market share of 5.63 percent while earning FPI Rs. 2.14 billion.
Other companies respectively Sun Nepal Rs.1.85 FPI. The FPI of Sun Nepal includes large amount of insurance premium income from Foreign Employment Insurance(FPI) which is later distributable to other life insurers as well.
Surya Life has earned Rs.1.78, Jyoti Life’ FPI Rs. 1.50 billion while IME Life has earned FPI Rs.1.38 billion. Prabhu Life Rs.1.38, Reliance Life Rs. 1.29 crore, Prime Life Rs.1.27 billion, Met Life has Rs. 1 billion FPI. State-owned Rastirya Beema Sansthan has FPI of Rs. 96 crores. Sanima Life has earned Rs. 89 crores FPI while Mahalakshmi Life has accumulated FPI Rs. 82 crores. Guransh Life has earned Rs. 60 crores FPI.
The FPI of Rs. 4.14 billion earned from the sales of single premium payment policies has not been included on above data.