NLG Insurance Profit Report Shows 1.1 Crore Gain
11th February 2026, Kathmandu
NLG Insurance Company Limited has released its second-quarter (Q2) financial results for the fiscal year 2082/83, highlighting a period of significant structural growth despite a sharp drop in immediate net profit. As of Poush 2082 (mid-January 2026), the company reported a net profit of Rs 1.10 crore, a stark contrast to the Rs 7.45 crore earned during the same period in the previous fiscal year.
NLG Insurance Profit Report
This financial shift comes during a transformative year for NLG, characterized by aggressive capital expansion and a massive increase in its insurance reserves.
Analysis of Profitability and Revenue
The 85.18 percent decline in net profit is primarily attributed to a substantial rise in total expenses, which outpaced the modest growth in premium collection.
Net Insurance Premium: Grew by 1.89 percent to Rs 45.19 crore.
Total Income: Saw a healthy expansion of 16.64 percent, reaching Rs 78.23 crore.
Total Expenses: Rose by 36.76 percent to Rs 76.66 crore, largely due to increased claim settlements and higher agent commissions.
Earnings Per Share (EPS): Consequently, the annualized EPS dropped from Rs 9.68 to Rs 0.86.
Massive Expansion in Insurance Fund
The most striking feature of the Q2 report is the growth of the company’s long-term financial safety net. The Non-Life Insurance Fund grew by 46.39 percent, jumping from Rs 3.32 billion to Rs 4.86 billion.
This expansion indicates that while the company is currently retaining less profit, it is funneling significantly more capital into its reserves to cover future liabilities and claims. This strategy aligns with the company’s focus on institutional stability rather than short-term earnings.
Capital Structure and Recent Right Share Issue
NLG Insurance has been active in the capital market recently to meet the regulatory paid-up capital requirement of Rs 2.50 billion set by the Nepal Insurance Authority.
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Right Share Issuance: The company recently completed a 10:6.256 (62.56%) right share issuance, which significantly boosted its paid-up capital to Rs 2.56 billion.
Dividend History (FY 2081/82): For the previous fiscal year, NLG endorsed a 7.3684 percent total dividend (4% bonus shares and 3.3684% cash for tax purposes).
Solvency Ratio: The company’s solvency ratio improved to 4.24 percent, well above the regulatory safety margin, proving that the company has more than enough capital to honor its commitments to policyholders.
Market Performance (NEPSE: NLG)
Despite the dip in quarterly profit, NLG remains a preferred stock for investors seeking long-term value in the non-life insurance sector.
Current Market Price: Rs 687.00 (as of February 10, 2026).
52-Week High/Low: Rs 1,195.00 – Rs 660.00.
Book Value Per Share: Rs 166.12.
Share Registrar: RBB Merchant Banking Limited.
Future Outlook and Strategic Management
The Q2 report suggests that NLG Insurance is prioritizing “fortifying its balance sheet.” The sharp increase in total assets to over Rs 9.87 billion and the massive growth in special reserves (Rs 1.39 billion) prepare the company for larger-scale corporate underwriting in the future. For stakeholders, the decline in current profit is offset by the significantly improved solvency and capital adequacy, which protects the company against the volatility of natural disasters and large industrial claims.
Conclusion
The NLG Insurance Q2 Profit Report for 2082/83 reveals a company in transition. While the net profit of Rs 1.10 crore may seem low, it is a byproduct of a deliberate strategy to build one of the strongest insurance funds in the country. With its recent right share issuance and successful capital padding, NLG is now positioned as a high-capacity insurer capable of handling the evolving risks of Nepal’s growing economy.
For More: NLG Insurance Profit Report
