4th May 2025, Kathmandu
Himalayan Life Insurance has shown a solid increase in its profits for the current fiscal year. The company has posted a net profit of NPR 47.24 crore by the end of the third quarter. This marks an 8.49% increase from the previous year’s net profit of NPR 43.54 crore during the same period.
Himalayan Life Insurance Q3 Profit
Revenue and Premium Income Surge
For the current fiscal year, the company’s total premium income reached NPR 12.18 billion as of the end of Chait, a rise from NPR 12.02 billion recorded during the same period last year. This increase in premium income has led to a higher overall revenue.
The total revenue for Himalayan Life Insurance stood at NPR 18.48 billion by the end of Chait, surpassing the previous year’s revenue of NPR 16.69 billion. This growth reflects a solid demand for the company’s life insurance products and an expanding customer base. The positive revenue growth indicates the company’s strong position in the market.
Increased Expenses and Liabilities
Despite the revenue growth, the company has experienced a rise in expenses. Himalayan Life Insurance’s total expenses climbed to NPR 17.14 billion by the end of Chait.
This is an increase from NPR 16.26 billion during the same period last year. The company attributes this rise to higher operational and administrative costs, which are part of expanding its operations.
Alongside the increase in expenses, the company’s liabilities have also grown. The insurance contract liabilities for the company reached NPR 74.52 billion, up from NPR 64.54 billion at the same time last year. In total, the company’s liabilities now amount to NPR 78.12 billion, a significant rise from NPR 67.37 billion in the previous year. This growth is reflective of the expanding scale of operations and the company’s increasing policyholder commitments.
Life Insurance Fund Growth
The company has made substantial progress in increasing its life insurance fund. As of the end of Chait, the life insurance fund has risen to NPR 73.77 billion, compared to NPR 61.65 billion during the same period last year. This increase highlights the growth of the company’s portfolio of life insurance policies and the increasing trust of policyholders.
In addition to the life insurance fund, Himalayan Life Insurance has strengthened its reserves. The company’s catastrophe fund now stands at NPR 47 crore, while the reserve fund has reached approximately NPR 110 crore. These reserves ensure the company’s financial stability and safeguard against unforeseen financial risks.
Decrease in Earnings Per Share (EPS)
Despite the positive revenue and profit growth, the company reported a slight decline in its earnings per share (EPS). The EPS for the current fiscal year stands at NPR 6.89, which is down from NPR 7.24 in the previous year.
However, the decline in EPS does not overshadow the overall positive performance of the company, which continues to demonstrate solid growth in revenue and profitability.
The company’s net worth per share has increased, reaching NPR 116.07 by the end of Chait. This increase indicates that the company’s assets are growing, and its financial position remains strong.
Strong Capital and Reserves
Himalayan Life Insurance also reports strong capital and reserves. The company’s paid-up capital is NPR 9.14 billion, and it has built up significant reserves. The catastrophe fund stands at NPR 47 crore, while the reserve fund amounts to approximately NPR 110 crore. These reserves will help the company support its policyholders and ensure long-term stability.
Outlook for the Future
Looking ahead, Himalayan Life Insurance remains focused on further expanding its market share. The company’s continued investment in increasing its premium income and building its reserves will help strengthen its financial foundation. Despite the rise in expenses and liabilities, the company’s positive profit growth and revenue increase point to a bright future.
The company’s performance underscores its ability to manage the challenges of the insurance market. By continuing to innovate and strengthen its financial position, Himalayan Life Insurance is well-positioned for sustained growth.
Conclusion
Himalayan Life Insurance has delivered impressive financial results for the third quarter of the fiscal year. The company’s growth in profits, premium income, and overall revenue showcases its strong market position. Although expenses and liabilities have risen, the increase in profits and reserves shows that the company is on a solid financial footing.
The company’s focus on expanding its life insurance fund and reserves will ensure long-term stability and continued growth. Himalayan Life Insurance is poised for a successful future, contributing to the overall development of Nepal’s insurance sector.
For more: Himalayan Life Insurance Q3 Profit