Kathmandu: The financial performance of Himalayan Reinsurance Company (Himalayan Re) significantly improved in the second quarter of the current financial year(FY) 2079-80.
The reinsurer succeeded to increase the net re-insurance premiums income by 7 times to NPR. 2.36 bn during the period under review. During the same period of last FY 2078-79, the total was only NPR. 299.9 mn only. Similarly, the total insurance fee income was NPR 2.48 billion in the Q2 of FY 2079-80.
The reinsurer witnessed a surge in its business income amid the provision imposed by the Nepal Insurance Authority to share direct cession between Nepal Reinsurance Company (NRIC) and Himalayan Re. Out of the total re-insurance business volume, insurers are obliged to share 20 percent with these two re-insurers.
The profit of the company decreased by 62 percent to NPR 46.3 mn during the review period. During the same period of last FY, the reinsurer earned a profit of NPR 124.7 mn.
The reserve fund increased by 37.87 percent to NPR 177.7 mn while NPR 136.9 crore accumulated in the insurance fund. Along with the increase in business volume, the net claim and reinsurance commission payment also surged in the second quarter. The reinsurer paid net claims of Rs. 147.7 mn while a total of NPR 608 mn was paid for reinsurance commission in the review period. A total of NPR 424.1 mn claim is still outstanding.