SALICO Earns Rs37.3 Million in Six Months
11th February 2026, Kathmandu
Sagarmatha Lumbini Insurance Company Limited, widely known as SALICO, has released its unaudited financial report for the second quarter of the fiscal year 2082/83. The results highlight a company in a significant growth phase for its core insurance business, even as its bottom line remains under pressure from rising operational costs and shifting investment returns.
SALICO Earns Rs37.3 Million
As one of the largest non-life insurers in Nepal following its landmark merger, SALICO continues to expand its market share from its headquarters in Naxal, Kathmandu.
Financial Performance and Net Profit
The second quarter report presents a complex picture where rapid business expansion has yet to translate into higher net earnings for the current period.
Net Profit: The company earned a net profit of Rs 37.3 million for the first half of the year. This is a 43.29 percent decline from the Rs 65.8 million reported in the same period last fiscal year.
Income from Investments: A notable factor in the profit dip was the 33.87 percent decline in income from investments and loans.
Total Assets: Despite the profit drop, the company’s balance sheet remains massive, with total assets exceeding Rs 15.51 billion.
Explosion in Net Premium Income
While the net profit decreased, SALICO’s ability to generate new business has accelerated dramatically. This is the most positive takeaway from the Q2 report.
Net Premium Growth: Net premium income surged to Rs 1.16 billion, up from Rs 719.1 million last year—a remarkable 61.94 percent increase.
Aggressive Expansion: This growth was fueled by a 114.66 percent rise in commission expenses paid to agents, indicating that SALICO is aggressively incentivizing its distribution network to capture more market share in the motor, property, and engineering insurance segments.
Capital Structure and Solvency
SALICO remains one of the most well capitalized non-life insurers in Nepal, comfortably meeting the regulatory capital requirements of the Nepal Insurance Authority.
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Paid-up Capital: Rs 2.62 billion.
Insurance Reserves: The company holds a massive Special Reserve of Rs 2.55 billion, alongside a catastrophe fund of Rs 217.1 million.
Investment Portfolio: SALICO has deployed Rs 6.27 billion into various investment instruments, including government bonds and fixed deposits.
Shareholder Information and Stock Performance
For the previous fiscal year 2081/82, SALICO recently endorsed a 15 percent cash dividend at its 29th Annual General Meeting held on Poush 29, 2082.
Current Market Price: Rs 600.00 (as of February 10, 2026).
52-Week High/Low: Rs 775.00 – Rs 570.10.
Book Value Per Share: Rs 229.48.
Management Analysis and Future Outlook
The management of SALICO has indicated that the company is currently prioritizing “scale over short-term profit” following its merger. The high cost of business acquisition (commissions) and the impact of recent natural disasters on claim settlements have temporarily suppressed profits. However, the nearly 62 percent growth in net premiums suggests that the company is building a larger pool of future earnings.
Conclusion
The Sagarmatha Lumbini Insurance Q2 Results for FY 2082/83 reveal a company that is growing its core insurance footprint at an industry-leading pace. While the 43 percent drop in net profit may concern short-term investors, the underlying expansion in premium income and the robust reserve base suggest a strong long-term foundation. Moving forward, the company’s ability to balance its high commission expenses with underwriting discipline will be the key to restoring double-digit profit growth.
For More: SALICO Earns Rs37.3 Million
