National Life Earns 140.8 Million Rupees Net Profit in First Quarter, Insurance Fund Nears 100 Billion
16th November 2025, Kathmandu
National Life Insurance Company Limited has announced its financial results for the first quarter of the current fiscal year, revealing continued strong growth in its core business and the monumental size of its life insurance fund.
National Life Earns Profit
While the company’s net profit showed only a marginal rise, the substantial expansion of its key financial resources signals long-term stability in the competitive insurance market.
Modest Net Profit Growth Amidst Expanding Scale
NLICL successfully posted a net profit of 140.8 million rupees in the first quarter, representing a modest increase of 1.81 percent compared to the 138.3 million rupees earned in the corresponding period of the previous fiscal year. This slow growth in net profit, despite significant operational scale-up, points to rising costs and increased distribution expenses across the period under review.
The primary engine of the company’s revenue growth remains its strong market presence and customer retention. During the three months, the company’s net insurance premium income saw a nearly 14 percent increase, rising substantially from 4.85 billion rupees to 5.52 billion rupees. This strong growth in premium collection confirms the company’s continuous ability to attract and retain policyholders, which is the lifeblood of any insurance business. Correspondingly, the company’s total income across all streams, including premium, investment, and other sources, increased by 9.23 percent, climbing from 6.69 billion rupees to 7.31 billion rupees.
The Near-100 Billion Life Insurance Fund Milestone
The most compelling highlight of the first quarter results is the impressive growth of the life insurance fund, a critical metric that underscores the company’s ability to meet future obligations to its policyholders. The fund swelled by a massive 24.72 percent, escalating from 75.07 billion rupees at the end of the same period last year to a near-milestone 93.63 billion rupees in the current fiscal year. The life fund is where policyholders’ premiums are invested to ensure maturity payments, claims, and bonuses are covered, making its rapid expansion a powerful indicator of the company’s financial safety and reliability. This rapid approach toward the 100 billion rupee mark positions National Life Insurance as one of the most financially robust insurers in Nepal.
Advertisement
The Impact of Rising Expenses and Distribution Costs
The marginal growth in net profit can be primarily explained by the concurrent increase in the company’s operating and distribution costs. Total expenses for the quarter rose by 10.58 percent, reaching 6.96 billion rupees compared to 6.30 billion rupees last year.
A significant portion of this expenditure is attributed to the sales network. The commission paid to insurance agents increased by almost 12 percent, climbing from 426.1 million rupees to 477.1 million rupees. While high commission payouts reflect aggressive sales efforts and market expansion, they directly impact the bottom line and lead to a slower pace of net profit growth. This reflects the intense competition within the Nepalese insurance market, where insurers often have to increase commission expenses to incentivize agents and capture a larger market share.
Earnings Per Share and Net Worth Analysis
Despite the increase in both premium income and total profit, the earnings per share (EPS) for National Life Insurance registered a decline, falling by 36 paisa to 10.30 rupees from 10.66 rupees in the corresponding period last year. This dilution is typically a result of an increase in the number of outstanding shares, often following the issuance of bonus shares or rights issues to meet the regulatory paid-up capital requirement.
However, the company maintains a robust financial backing, demonstrated by a net worth per share standing at 131.54 rupees. Furthermore, the company’s financial foundation is strengthened by significant reserve and capital accounts:
- Paid-Up Capital: 5.47 billion rupees
- Share Premium: 27.8 million rupees
- Catastrophe Fund: 681.3 million rupees
- Reserve Fund: 638 million rupees
The substantial Catastrophe Fund is particularly noteworthy, acting as a crucial buffer to cover exceptional claims arising from major natural disasters or unforeseen large-scale events, thereby enhancing the long-term safety of the insurance fund and policyholders’ interests. Overall, the first quarter results affirm National Life’s foundational strength, underpinned by massive policyholder funds, even as increasing operational costs pose a marginal drag on short-term profitability metrics like EPS.
For More: National Life Earns Profit
