Nepal Insurance Company Limited Published Unaudited Financial Results for Fiscal Year 2025/26

14th August 2026, Kathmandu

Nepal Insurance Company Limited, a non-life insurance provider operating in Nepal, has published its unaudited financial results for the fourth quarter of fiscal year 2025/26.

Nepal Insurance Financial Results

The financial disclosure highlights solid top-line growth in core insurance business and premium collection alongside a significant decline in annual net profit.

Contraction in Net Profit Earnings

The fourth-quarter financial statement details a drop in bottom-line earnings during the fiscal year:

• The company posted a net profit of Rupees 17.84 crore for fiscal year 2025/26.
• This represents a 60.78 percent decrease compared to the net profit of Rupees 45.49 crore reported in the previous fiscal year.

The drop in net profit was driven by a rise in claim applications, higher operating expenses, and reduced investment earnings.

Expense Escalation and Investment Revenue Trends

Operating costs and investment performance shifted as follows during the review period:

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• Total Operating Expenses: Total expenses increased by 36.12 percent to reach Rupees 1.38 billion.
• Agent Commission Expenses: Agent commission expenditures surged by 65.71 percent during the year.
• Claim Payments: Total claim payouts increased by 29.28 percent as claim applications rose.
• Investment Income: Revenue generated from investments fell by 26.05 percent to settle at Rupees 20.79 crore.

Strong Expansion in Insurance Premium Income and Policy Issuance

Core underwriting operations maintained positive growth momentum:

• Net Insurance Premium Income: Net premium earnings grew by 18.15 percent to reach Rupees 1.12 billion, up from Rupees 95.05 crore in the prior fiscal year.
• Policy Issuance Volume: The company issued 222,741 insurance policies, expanding from 215,048 policies issued in the preceding period.

Capital Base, Insurance Fund, and Investment Portfolio

Nepal Insurance Company Limited strengthened its balance sheet structure and asset base:

• Paid-Up Capital: Paid-up capital expanded by 34.78 percent to reach Rupees 2.55 billion.
• Insurance Fund Growth: The insurance fund increased by 23.18 percent to stand at Rupees 2.42 billion.
• Total Investments: Total corporate investments reached Rupees 5.50 billion across the review period.
• Catastrophe Reserve: The catastrophe reserve stood at Rupees 11.85 crore.

Per-Share Valuation Metrics

The decline in net earnings directly impacted per-share indicators for shareholders:

• Earnings Per Share: Annualized earnings per share fell from Rupees 16.74 to Rupees 5.00.
• Net Worth Per Share: The reported net worth per share of the company stood at Rupees 176.85 at the close of the fiscal period.

Summary of Fiscal Performance and Outlook

The fourth-quarter results for fiscal year 2025/26 reflect steady market expansion alongside short-term profit compression for Nepal Insurance Company Limited.

While an 18.15 percent increase in net insurance premium income confirms strong demand for its underwriting services, controlling rising claim liabilities and agent commission expenses will serve as critical priority areas in upcoming fiscal periods.

For More: Nepal Insurance Financial Results