Kathmandu: Nepal Life Insurance has witnessed a sharp decline of 72 percent in its reserve fund during the second quarter of the current financial year 2079-80. Its reserve fund has Rs. 484 million only. It was Rs.1 billion 752 billion during Q2 of FY 2078-79.
In the 6 months period, the insurer earned a net profit of Rs. 44 crores. It was Rs. 13 crores during the review period of last FY 2078-79. The company has improved profit income from the recovery of possible loss against investment in the secondary market and agency loan. The company has recovered Rs. 15 crores 35 lakhs provisioned for possible loss.
According to the quarterly unaudited financial report of the company, with a paid-up capital of above Rs. 8 billion, the book value of the company is only Rs. 116. The book value was Rs. 134 last year. It has Rs.1.50 trillion in its life fund. The fund increased by 20.84 percent during the second quarter of the current FY.
Net insurance premium income has increased by a negligible percentage. The insurer has earned Rs. 18.44 billion in net insurance premiums against 18.11 in the second quarter of last FY.
