NECO Insurance Financial Performance and 30th AGM Review 2082/83
30th January 2026, Kathmandu
The non life insurance sector in Nepal is witnessing a period of steady consolidation and NECO Insurance Limited has remained at the forefront of this movement by maintaining robust top line growth and a strong capital base. According to the recently published financial statements and the notice for the 30th Annual General Meeting the company has demonstrated resilience in its underwriting performance for the fiscal year ending in Ashadh 2082.
NECO Insurance Financial Performance
As one of the oldest and most trusted insurance providers in the country NECO continues to leverage its extensive network and diversified product portfolio to drive shareholder value even in a competitive and regulatory intensive environment.
30th Annual General Meeting and Dividend Announcement
The board of directors of NECO Insurance Limited has officially summoned the 30th Annual General Meeting (AGM) to be held on the 12th of Falgun 2082 (February 24, 2026) at the Amritbhog in Kalikasthan Kathmandu. This meeting is set to be a landmark event as the company proposes a significant dividend distribution to its shareholders based on the audited profits of the fiscal year 2081 2082.
Bonus Share Proposal: The company has proposed a 10 percent bonus share distribution to its shareholders from the existing paid up capital.
Cash Dividend: In addition to the bonus shares a cash dividend of 0.5263 percent has been proposed to cover the tax obligations arising from the bonus share issuance.
Capital Increase: Following the approval and issuance of these bonus shares the paid up capital of NECO Insurance will increase significantly from 2.01 billion rupees to approximately 2.21 billion rupees.
Book Closure: For the purpose of the AGM and dividend distribution the company has announced a book closure date on the 1st of Falgun 2082 meaning only shareholders registered before this date will be eligible for the rewards.
Underwriting Performance and Income Analysis
The financial results for the period ending in Ashadh 2082 reflect a healthy growth in the core insurance business. The total premium earned by the company reached 3.44 billion rupees for the year a notable increase from the 2.89 billion rupees recorded in the previous fiscal year. After accounting for reinsurance premiums ceded the net premium income stood at 1.59 billion rupees.
Commission Income: The company earned 335.30 million rupees in commission income from reinsurers which is a vital secondary revenue stream that supports the overall profitability.
Investment Income: Income from investments and loans contributed 286.99 million rupees to the total income highlighting the effective management of the company’s massive technical reserves and capital funds.
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Total Income: The aggregate income for the period was recorded at 2.28 billion rupees allowing the company to maintain its status as one of the highest revenue generators in the non life insurance industry.
Claims Management and Operating Expenses
As a customer centric organization NECO Insurance has prioritized the timely settlement of claims. During the fiscal year 2081 2082 the net claims incurred amounted to 882.58 million rupees. This represents a manageable loss ratio considering the scale of the company’s operations and the diverse nature of risks it covers including motor fire and engineering insurance.
Operating expenses for the period were kept under strict control with management expenses totaling 482.09 million rupees. The company reported a profit before tax of 851.22 million rupees showcasing its strong earning capacity before regulatory and fiscal deductions. The final net profit for the year was reported at 578.84 million rupees.
Balance Sheet Strength and Financial Position
The total assets of NECO Insurance Limited have crossed the 11 billion rupee mark standing at 11.03 billion rupees as of the end of Ashadh 2082. The company maintains a highly liquid and secure investment portfolio with 6.91 billion rupees invested in various financial instruments and property.
Insurance Reserves: The company has built formidable reserves to protect its policyholders. The insurance fund stood at 2.11 billion rupees while special reserves reached 2.45 billion rupees.
Shareholders Equity: Total equity attributable to holders of the company is 6.31 billion rupees providing a massive capital buffer that far exceeds the minimum regulatory requirements set by the Nepal Insurance Authority.
Solvency and Liquidity: Cash and cash equivalents were recorded at 410.59 million rupees ensuring that the company has immediate liquidity to meet its short term obligations and claim requirements.
Shareholder Metrics and Market Outlook
The latest financial results have translated into attractive metrics for the investors. The basic earnings per share (EPS) for the year was recorded at 22.01 rupees which is a strong indicator of the company’s profitability per unit of capital. The net worth per share remains high reflecting the intrinsic value and the accumulated reserves of the company over its three decades of operation.
Looking forward the 2082 2083 fiscal year presents new opportunities as the company continues to expand its digital insurance platforms and microinsurance products in rural areas. With the upcoming 10 percent bonus share issuance shareholders can expect their investment to grow alongside the company’s expanding market share. NECO Insurance remains a top pick for investors seeking stability and consistent returns in the insurance sector.
In conclusion the NECO Insurance Limited financial performance for the period ending in 2082 demonstrates a well balanced approach to growth and risk management. By maintaining a high premium growth rate and a robust capital position the company is well prepared to face future market volatility. The upcoming 30th AGM will serve as a platform for the management to share its future strategic roadmap for 2082 2083 and beyond.
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