Prabhu Mahalaxmi Life Insurance Reports Higher Profit and Premium Income in Third Quarter
10th May 2026, Kathmandu
Nepal’s insurance sector continues to witness aggressive growth, with Prabhu Mahalaxmi Life Insurance Limited emerging as a key performer in the third quarter of the fiscal year 2082/83.
Prabhu Mahalaxmi Life Q3
According to the company’s unaudited financial statement ending in Chaitra, the insurer has successfully expanded its market footprint, evidenced by a significant double-digit surge in premium collection and a substantial increase in its life insurance fund.
Despite the highly competitive landscape and shifting economic conditions in Nepal, the company has managed to maintain a steady upward trajectory in both its operational scale and net profitability.
Net Profit Increases Amid Rising Income
For the first nine months of the current fiscal year, Prabhu Mahalaxmi Life Insurance reported a net profit of Rs 27.50 crore. This reflects a 1.61% increase compared to the Rs 27.07 crore earned during the same period in the previous fiscal year.
While the bottom-line growth appears modest, the company has emphasized that this improvement was supported by a robust increase in total income, which helped offset the rising costs associated with expanding its business network and policyholder services across the country.
Net Premium Income Rises Nearly 29%
The standout highlight of the Prabhu Mahalaxmi Life Insurance Q3 report is the rapid growth in its core insurance business. The company’s net insurance premium income surged from Rs 3.49 billion in the previous fiscal year to Rs 4.15 billion in the current period.
This 28.89% growth is a strong indicator of the company’s aggressive market expansion. It suggests that the merger of the former Prabhu Life and Mahalaxmi Life has successfully created synergies, allowing the unified entity to capture a larger share of the Nepali life insurance market through more diverse product offerings and an expanded agent network.
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Life Insurance Fund Grows by 32%
A life insurance company’s stability is often measured by the size of its insurance fund, which represents the pool of money held to pay out future claims. During the review period, Prabhu Mahalaxmi Life saw its life insurance fund grow by an impressive 32%.
- Previous Year: Rs 12.80 billion
- Current Year: Rs 16.90 billion
This substantial increase to nearly Rs 17 billion indicates high policyholder trust and a growing volume of long-term savings-based policies. A larger fund size provides the company with more capital for income-generating investments, which is crucial for delivering competitive bonuses to its policyholders.
EPS and Per-Share Metrics
While the total net profit increased, the company’s Earnings Per Share (EPS) saw a slight technical decline. This is often observed in the insurance sector when the increase in the number of shares (due to mergers or capital hikes) outpaces the immediate growth in net profit.
- Current EPS: Rs 6.91
- Previous EPS: Rs 7.07
- Net Worth Per Share: Rs 115.60
The net worth per share remains healthy, staying well above the par value, reflecting the company’s strong book value and financial cushion.
Capital and Reserve Position
Prabhu Mahalaxmi Life Insurance maintains a formidable capital base, well-aligned with the regulatory requirements set by the Nepal Insurance Authority. The company’s financial position is backed by:
- Paid-up Capital: Rs 5.30 billion
- General Reserve Fund: Rs 33.21 crore
- Disaster Reserve Fund: Rs 13.84 crore
- Share Premium Reserve: Rs 1.93 crore
These reserves act as a secondary safety net, ensuring the company can meet its obligations even during catastrophic events or economic downturns.
Conclusion
The Prabhu Mahalaxmi Life Insurance Q3 financial report paints a picture of a company in a strong growth phase. With a 29% jump in net premiums and a 32% expansion of its insurance fund, the company is successfully scaling its operations. Although the EPS saw a slight dip, the overall increase in business volume and reserve strength positions Prabhu Mahalaxmi Life as a resilient player in Nepal’s evolving life insurance industry.
For More: Prabhu Mahalaxmi Life Q3
