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Profit of Life Insurance Companies Decline

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Profit of Life Insurance Companies Decline
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August 28: Profit of life insurance companies has declined in the last FY compared to the previous FY as per the annual financial reports published by the companies. The profit of life insurance companies has declined by 33.45 percent to Rs 727.8 million in the last FY which was Rs 1.09 billion in the previous FY.

The decline in the profit of the life insurance companies is attributed to the major losses caused by the devastating earthquake of last year. According to the published annual financial reports, Nepal Life Insurance has earned the highest profit in the last FY. However, the profit earned by the company has decreased by 54.40 percent to Rs 240.5 million. Similarly, Gurans Life Insurance has logged the highest profit increase in percentage term despite of lower total amount.  The profit of Gurans Life has increased by 136.86 percent during the last FY.

According to the numbers of insurance policies issued, Nepal Life Insurance has issued the maximum number of insurance policies. The number of policies has increased to 1.24 million during the last FY. The company has earned the highest amount of insurance premiums as well. It has earned Rs 7.06 billon insurance policies by the end of the last FY.

Likewise, Prime Insurance has the highest reserve fund among the insurance companies. The company has increased its reserve fund by 37 percent to Rs 685 million in the last FY from Rs 496.5 million in the previous FY. 

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