Prabhu Insurance Reports Profit in Q2 FY 2082/83
12th February 2026, Kathmandu
Prabhu Insurance Company Limited has officially released its unaudited financial report for the second quarter (Q2) of the fiscal year 2082/83. The report showcases a resilient financial performance, with the company recording a net profit of NPR 122.45 million for the period ending Poush 2082. This result comes at a time when the non life insurance sector in Nepal is facing increased competition and a shifting regulatory landscape under the Nepal Insurance Authority.
Prabhu Insurance Reports Profit
The following analysis provides a deep dive into the company’s financial indicators, insurance portfolio, and strategic market positioning.
Financial Performance and Profitability Analysis
Prabhu Insurance has demonstrated strong revenue generation through its core insurance operations and investment activities.
Net Profit: The cumulative net profit for the first half of the year reached NPR 171.02 million, with the second quarter contributing NPR 122.45 million. This acceleration in profit during the second quarter indicates improved operational efficiency and a decrease in net claims incurred relative to the first quarter.
Gross Earned Premiums: The company earned NPR 1.06 billion in gross premiums year to date. For the second quarter alone, the gross earned premium stood at NPR 602.66 million, reflecting steady growth in the policyholder base.
Investment Income: The total investment portfolio reached NPR 135.95 crores. These investments, primarily in fixed deposits and government bonds, provide a stable secondary income stream that cushions the volatility of insurance claims.
Insurance Portfolio and Claims Management
Effective claim management is the backbone of any non life insurance provider, and Prabhu Insurance has maintained a disciplined approach to settling liabilities.
Policies and Renewals: During the review period, the company issued 54,178 policies and renewed 23,051 existing ones. The high renewal rate suggests strong customer retention and trust in the Prabhu brand.
Claims Paid: The company settled 5,359 claims during the period. While total claims paid amounted to NPR 19.61 crores, the net claims incurred (which includes adjustments for reinsurance and outstanding liabilities) were managed within sustainable limits.
Outstanding Claims: As of Poush 2082, the company has 1,920 outstanding claims, including IBNR (Incurred But Not Reported) and IBNER (Incurred But Not Enough Reported) provisions, totaling NPR 2.13 billion.
Balance Sheet and Capital Adequacy
The company’s balance sheet has expanded significantly, providing a higher level of security for its policyholders.
Total Assets: The assets grew to NPR 7.65 billion, compared to NPR 6.72 billion at the end of the previous fiscal year.
Share Capital and Reserves: Following the distribution of bonus shares and capital adjustments, the paid up capital stands at NPR 1.70 billion. The company also maintains a catastrophe reserve of NPR 107.39 million to handle large scale unexpected losses.
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Net Worth per Share: The net worth per share is reported at NPR 203.11, while the total assets per share stand at NPR 450.28.
Market Performance
Prabhu Insurance (PRIN) remains a stable player in the non life insurance sub index on the Nepal Stock Exchange.
Last Traded Price: NPR 700.00 (as of February 10, 2026).
52 Week Range: NPR 1,088.80 – NPR 630.00.
Earnings Per Share (EPS): The annualized EPS is recorded at NPR 14.40.
Price to Earnings (P/E) Ratio: At the current market price, the P/E ratio is 48.41.
The recent 18 percent bonus share distribution for the fiscal year 2080/81 has increased the number of listed shares to 17,009,560 units, which may impact future EPS and dividend per share (DPS) calculations.
Challenges and Strategic Outlook
Under the leadership of CEO Sanchit Bajracharya, the company is navigating several sectoral challenges:
Internal Pressures: Rising operating costs and a shortage of skilled actuarial and technical staff in the insurance industry.
External Risks: Increased competition from recently merged insurance giants and the impact of fluctuating interest rates on the investment portfolio.
Regulatory Compliance: The company continues to align its reporting with the Nepal Financial Reporting Standards (NFRS) and the latest directives from the Nepal Insurance Authority.
The management strategy for the remainder of the fiscal year focuses on “quality growth.” This involves prioritizing profitable segments like motor and engineering insurance while using technology to streamline the claims intimation and settlement process through digital platforms.
Conclusion
The Prabhu Insurance Q2 Report for FY 2082/83 confirms that the company is on a solid growth path. With a net profit of over NPR 12 crore in the second quarter and a robust asset base of NPR 7.65 billion, PRIN is well positioned to reward its shareholders while providing reliable coverage to its policyholders. The company’s focus on maintaining a high net worth and disciplined claim management will be crucial as the insurance sector continues to consolidate.
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