NLG Insurance Reports Fourth Quarter Financial Results for Fiscal Year 2082/83

14th August 2026, Kathmandu

NLG Insurance Company Limited, one of the premier non-life insurance companies operating in Nepal, has officially published its unaudited fourth-quarter financial results for fiscal year 2082/83.

NLG Insurance Financial Results

The quarterly report outlines a strong expansion in core insurance business activity and net premium income, alongside a sharp drop in overall net profit and earnings per share caused by substantial growth in total claims payments and operating expenses.

Despite expense-related pressure impacting bottom-line profitability during the twelve-month review period, the company continues to maintain a strong capital base and an expanding total insurance fund.

Net Profit Decline Driven by Rising Claims and Operational Expenses

The financial report outlines a notable drop in net earnings during the review period due to elevated cost factors:

• The company posted a net profit of Rs 57.81 million for fiscal year 2082/83.
• This represents a 62.31 percent decline compared to the net profit of Rs 153.39 million recorded in the corresponding period of the previous fiscal year.
• The contraction in net profitability was primarily driven by a significant surge in total claim payouts and a broader rise in overall operating expenditures.

Strong Expansion in Insurance Premium Collection and Total Income

Core underwriting performance and total revenue generation demonstrated healthy growth during the fiscal year:

• Net Insurance Premium Income: Net premium collection grew by 17.99 percent, rising from Rs 982.8 million in the previous fiscal year to Rs 1.16 billion in the review period.
• Total Income Growth: Total income generated by the non-life insurer expanded by 11.60 percent, increasing to Rs 1.84 billion compared to the prior year.

The double-digit increase in net insurance premium income reflects strong market presence, higher customer retention, and steady growth across various general insurance portfolios.

Substantial Growth in Total Expenses and Claim Payouts

The fourth-quarter financial statement details the expenditure and claims dynamics that impacted short-term profitability:

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• Total Expenses: Total operating expenses increased by 27.41 percent during the review period, rising to Rs 1.76 billion.
• Total Claim Payments: Total claim payouts grew by 37.55 percent, escalating from Rs 2.42 billion in the previous fiscal year to Rs 3.33 billion in fiscal year 2082/83.

The sharp rise in claim settlements put significant pressure on net underwriting margins, ultimately leading to lower bottom-line net profit.

Insurance Fund Growth and Balance Sheet Reserves

NLG Insurance Company Limited continued to build up its capital base and long-term insurance reserves during the review period:

• Paid-Up Capital: The company’s paid-up capital expanded by 4 percent to reach Rs 2.67 billion.
• Insurance Fund: The total insurance fund experienced solid growth of 14.76 percent, expanding to Rs 3.82 billion.
• Retained Earnings: Retained earnings experienced a sharp contraction of 87.20 percent, dropping down to Rs 11.7 million at the end of the review period.

Per-Share Valuation and Key Financial Metrics

The decrease in net profit directly influenced key per-share performance indicators and financial valuations:

• Earnings Per Share: Annualized earnings per share dropped from Rs 5.98 to Rs 2.17, representing a decline of Rs 3.81 per share.
• Net Worth Per Share: The reported net worth per share of the company stood at Rs 166.36 at the close of the fiscal period.

Summary of Institutional Performance and Market Outlook

The fourth-quarter financial results of NLG Insurance Company Limited reflect solid top-line business expansion combined with short-term profitability challenges.

The 17.99 percent growth in net insurance premium income to Rs 1.16 billion, the 11.60 percent rise in total income to Rs 1.84 billion, and the 14.76 percent increase in the total insurance fund to Rs 3.82 billion demonstrate strong core market demand and structural backing.

Efforts to manage rising claim liabilities and operational expenses will remain critical focus areas for management to restore profit margins in subsequent fiscal periods.

For More: NLG Insurance Financial Results