Asian Life Insurance Profit rises 5.30 percent
6th February 2026, Kathmandu
Asian Life Insurance Company Limited has announced its financial results for the second quarter of the fiscal year 2082/83 mid January 2026 highlighting a period of strategic expansion and capital strengthening.
Asian Life Insurance Profit
The insurer recorded a net profit of 26.35 crore rupees for the first six months representing a 5.30 percent increase from the 25.03 crore rupees earned during the same period in the previous fiscal year.
A major milestone for the company during this quarter was its life insurance fund crossing the 50 billion rupee mark a psychological and financial threshold that places it among the top tier life insurers in Nepal.
Life Insurance Fund and Asset Strength
The company’s life insurance fund reached 50.85 billion rupees by the end of Poush 2082 up from 44.68 billion rupees a year prior. This 11.91 percent growth is a key indicator of long term sustainability as the fund represents the primary reserve for future policyholder claims.
- Life Insurance Fund: 50.85 billion rupees 11.91 percent growth.
- Catastrophe Fund: 31.38 crore rupees compared to 28.74 crore last year.
- Retained Earnings: 91.90 crore rupees up from 86.70 crore rupees.
- Total Assets: Approximately 58 billion rupees group level estimated.
The strengthening of these reserves provides a solid cushion against market volatility and ensures the company remains well within the solvency requirements mandated by the Nepal Insurance Authority.
Premium Income and Business Expansion
Asian Life Insurance reported a double digit increase in its premium collection reflecting successful market penetration and high renewal rates.
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- Total Premium Income: 4.74 billion rupees 12.49 percent growth.
- Net Premium Income: 4.64 billion rupees 11.40 percent growth.
- Previous Year Total Premium: 4.21 billion rupees.
The growth in premium income is attributed to a 22 percent increase in first year premiums and a steady 15 percent rise in renewal premiums. This balance ensures that the company is not only acquiring new clients but also successfully retaining its existing policyholder base.
Key Financial Indicators and Per Share Metrics
The company’s profitability metrics show a consistent upward trend despite the increased claims pressure seen across the industry this year.
- Annualized Earnings Per Share EPS: 10.54 rupees up from 10.01 rupees.
- Net Worth Per Share: 128.73 rupees.
- Paid up Capital: 5.11 billion rupees.
- Price to Earnings PE Ratio: 44.94 times.
The paid up capital of 5.11 billion rupees follows the successful 42 percent right share issuance and listing completed in late 2025. While the EPS has improved the high PE ratio suggests that investors are pricing in high future growth expectations for the stock.
Strategic Outlook and Market Position
The insurance sector in Nepal is currently undergoing significant transformation with increased digital adoption and a shift toward micro insurance products. Asian Life’s focus on long term endowment and whole life policies has provided a stable base while its recently updated bonus rates ranging from 42 to 75 rupees per thousand have helped maintain competitive appeal.
As of early 2026 the company’s ability to grow its life fund faster than its liability profile marks it as a financially disciplined operator. The upcoming challenge will be managing the rising volume of claims which surged across the industry in the latter half of 2025 while continuing to deliver double digit returns to shareholders.
Conclusion
The second quarter report for FY 2082/83 confirms Asian Life Insurance’s status as a stable and growing entity. With a 5.30 percent profit increase and its life fund exceeding 50 billion rupees the insurer is well positioned to leverage its expanded capital base. For investors the focus remains on the companys ability to maintain its premium growth rate while optimizing its administrative costs to drive higher net margins.
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