Himalayan Life Insurance Shows Strong Growth: Life Fund Nears NPR 76 Billion
15th August 2025, Kathmandu
Himalayan Life Insurance Limited reported a mixed financial performance for the fiscal year 2024/25, with a 13.71% decline in net profit to NPR 54.69 crore from NPR 63.38 crore.
Himalayan Life Insurance Shows Strong Growth
This was primarily due to a significant rise in both operational costs and claim payouts. However, the company demonstrated strong underlying business growth in its core metrics, highlighting its resilience and a strategic focus on long-term stability.
Growth in Core Business Metrics
Despite the drop in net profit, Himalayan Life Insurance showed robust growth in key business indicators that are vital for the long-term health of a life insurance company.
Life Insurance Fund: The life fund, which is the pool of money reserved to meet future policyholder claims, grew by a remarkable 19.48% to nearly NPR 76.94 billion. This substantial increase is a critical indicator of public trust and the company’s ability to accumulate and manage funds effectively.
Premium Collections: The company’s gross written premiums increased by 6.60% to NPR 17.26 billion, a testament to its expanding market presence and successful sales efforts.
Claims Paid: In a clear sign of its commitment to customers, the company’s total claims paid surged by 22.43% to NPR 7.33 billion. This reflects the company’s dedication to fulfilling policyholder obligations and enhances its reputation for reliability.
Financial Health and Shareholder Value
The decline in profit led to a decrease in Earnings Per Share (EPS), which dropped to NPR 5.98 from NPR 7.90. While a lower EPS can be a concern for investors, it must be viewed in the context of the company’s strategic financial decisions. The company’s net worth per share remained steady at NPR 111.20, and its paid-up capital increased by 14% to NPR 9.14 billion. These figures, along with strengthened catastrophe and contingency reserves, underscore the company’s focus on building a strong financial fortress against market volatilities and unforeseen events.
Strategic Outlook and Challenges Ahead
Himalayan Life Insurance’s performance in FY 2024/25 highlights a strategic choice to invest in market expansion and claim management, which temporarily pressured profitability. The company faces ongoing challenges, including stiff market competition and limited investment avenues. However, with its robust growth in core business metrics and a strong capital base, it is well-positioned to navigate these challenges. By focusing on operational efficiency and addressing resource constraints, the company can translate its impressive business volume into improved profitability in the future, securing its position as a key player in Nepal’s insurance industry.
