Kathmandu: LIC Nepal(LICN) Insurance has incurred loss due to provisioning while Nepal Life Insurance(NLIC) has made a profit of Rs.17.57 crore in the first quarter of current fiscal year.
In the Q1 of current FY 2079-80, LICN has incurred a loss of Rs. 59.29 lakh 29 where it has made provisioning of Rs.5.57 crore. During this period last FY 2078-79, the company had earned a profit of Rs. 3.19 crore. The net insurance premium of LICN has declined by 14.03 percent to Rs. 4.49 billion in Q1 while net insurance premium income was Rs.5.22 billion during the same period of last FY.
LICN has witnessed a decline in net claim payment. The company has paid Rs.1.95 billion during the period under review, while it had paid Rs. 3.72 billion in the same period last FY. A total of Rs 50.14 crore has been paid against agency commission and incentives in Q1 this year.
NLIC has been able to increase it’s total insurance premium income(TPI) and net profit in Q1 of current FY. According to the unaudited quarterly financial statement, it has earned Rs. 10.5 billion TPI. The TPI was Rs.9.90 billion in the Q1 of last FY. It’s net insurance premium income remained Rs.9.93 billion in Q1 of current FY.
NLIC has made a net profit of Rs. 17.57 crore with an increased of 25 times as compared to the Q1 of last FY. NLIC has a paid-up capital of Rs. 8.20 billion and reserve fund of Rs.1.99 billion. The reserve fund increased by 129.04 percent during the review period. It’s life fund is of Rs. 1.42 trillion which is the largest fund among life insurers.
