Nepal Reinsurance profit fell by 13.86 percent; What are the reasons behind?

Kathmandu, April 9

Nepal Reinsurance Company has made public the second quarter financial statements of the Fiscal Year 2077/07. The company’s overall financial position has deteriorated so far.

The company has earned a net profit of Rs. 53 crore 69 lakh in the second quarter of the current fiscal year. The company’s profit has decreased by 13.86 percent compared to the same period last year. The company had earned a profit of Rs. 62 crore 33 lakh in the second quarter of the last fiscal year.

The company’s non-life insurance business profit fell by 19.34 percent. Therefore, the company’s profit has decreased. However, profits from the life insurance business increased by 37.48 percent. With the decline in profits, the company’s earnings per share have declined by Rs. 4. The company’s paid-up capital has increased from Rs. 8 arba 40 crore to Rs. 20 arba after the issuance of primary shares.

Nepal Reinsurance, which has not yet distributed profits, has accumulated Rs 3 arba 49 crore in the company’s reserve fund. The company’s insurance fund has increased by 37.98 percent and to Rs. 2 arba 33 crore. The company’s own premium income from non-life insurance business has increased by only 8.09 percent, while life insurance business has increased by 97.49 percent.

In Nepal Reinsurance, the company has earned Rs 3 arba 40 crore in non-life insurance business and Rs. 39 arba 46 crore in life insurance business. Claim payments have increased by 45.12 percent during the same period. The non-life insurance business has to pay Rs. 95 crore 80 lakh million while the life insurance side has to pay Rs. 14 crore 37 lakh, including a total of Rs 1 arba 10 crore.