Liberty Micro Net Profit Reports 25% Increase
11th February 2026, Kathmandu
Liberty Micro Life Insurance Limited has published its unaudited financial statements for the second quarter of the fiscal year 2082/83, reporting a net profit of Rs 7.31 million as of Poush 30, 2082 (January 14, 2026). This reflects a solid 24.91 percent growth compared to the Rs 5.85 million earned during the same period in the previous fiscal year.
Liberty Micro Net Profit
Headquartered in New Road, Pokhara, Liberty Micro Life is one of the newer entrants in Nepal’s specialized micro-insurance sector, focusing on providing affordable life insurance solutions to low-income and marginalized communities.
Financial Performance Highlights (Q2 2082/83)
The company’s mid-year results show a significant expansion in investment-led income, which has cushioned the rising operational costs associated with its early-stage growth.
Net Profit: Increased to Rs 7.31 million, up from Rs 5.85 million last year.
Net Interest Income: Witnessed a massive surge of 192.68 percent, reaching Rs 19.75 million. This jump is attributed to better fund deployment in high-yield fixed deposits and government securities.
Life Insurance Fund: This critical reserve grew by a staggering 513.36 percent, signaling a rapid increase in the number of active policyholders and total premium collection.
Investment Portfolio: Total investments reached Rs 70.36 million, supporting the company’s long-term sustainability.
Business Expansion and Operating Costs
As a growing micro-insurer, Liberty Micro Life is aggressively expanding its footprint across suburban and rural Nepal.
Premium and Commissions: While total income rose by over 144 percent, total expenses followed a similar trajectory, increasing by 152 percent. This includes a 143.58 percent rise in commission payments, reflecting a push to mobilize more agents at the grassroots level.
Market Reach: The company now operates through 14 network points and an agency force that has grown to over 1,940 agents.
Product Portfolio: Its specialized plans include the Samriddhi Kawach Micro Term Life and Surakshit Bal Bhavishya Yojana, which offer sum assured amounts ranging from Rs 25,000 to Rs 500,000.
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Capital and Solvency Status
Liberty Micro Life maintains a healthy capital base that meets the regulatory requirements for micro-life insurers in Nepal.
Paid-up Capital: Currently stands at Rs 525 million.
Reserves: The company has built a General Reserve of Rs 13.7 million and a Catastrophe Reserve of Rs 89,000.
Solvency Margin: According to recent ICRA Nepal reports, the company maintains a solvency ratio of approximately 2.0 times, well above the regulatory minimum of 1.5 times.
Reinsurance: The company has secured adequate reinsurance arrangements with Nepal Reinsurance Company and Himalayan Reinsurance to mitigate high-risk claims.
Strategic Focus: Digital Micro-Insurance
One of Liberty Micro Life’s core differentiators is its commitment to “paperless” insurance. The company utilizes a digital-first approach for:
Enrollment: Simplified mobile-based proposal forms for rural clients.
Premium Payment: Integration with digital wallets like eSewa and Khalti.
Claim Settlement: Aiming for fast, hassle-free digital verification to build trust among marginalized populations who traditionally lack access to formal banking.
Conclusion
The Liberty Micro Life Q2 Results for 2082/83 illustrate a company successfully navigating its initial growth phase. With a 25 percent increase in net profit and a massive expansion in its life insurance fund, the company is proving the viability of the micro-life insurance model in Nepal. While high business acquisition costs remain a challenge, the triple-digit growth in interest income suggests that the company is managing its capital effectively.
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