Prabhu Insurance’s Financial Results Demonstrate Strength
15th August 2025, Kathmandu
Prabhu Insurance Limited had a strong fiscal year 2024/25, posting a 39.24% increase in net profit, reaching NPR 21.19 million.
Prabhu Insurance Shines in FY Performance
The company also saw significant growth in its insurance fund and net premium collections, highlighting its robust operational performance and expanding market presence.
Key Financial Highlights
Prabhu Insurance’s financial results demonstrate strength across key performance indicators. The company’s net premiums collected rose by 10.76% to NPR 63.5 million, a clear sign of its growing client base and effectiveness in the competitive insurance market. This growth in core business activities, combined with a remarkable 33.86% expansion of its insurance fund to NPR 2.7 billion, underscores the company’s financial stability and its commitment to securing policyholder interests.
The company’s focus on efficiency is evident in its expense management. While total revenue increased by almost 10%, total expenses rose by only a little over 2%. Notably, the commission paid to agents actually decreased by over 39%, reflecting a more streamlined and efficient operational model. This improved cost management directly contributed to the impressive profit growth.
A Closer Look at Claims and Shareholder Value
A crucial aspect of an insurance company’s reliability is its ability to settle claims promptly. Prabhu Insurance’s report shows a 22.53% increase in claims paid to policyholders, rising to NPR 51.63 million. This demonstrates the company’s commitment to honoring its obligations and building customer trust, which is essential for long-term growth.
For shareholders, the news is equally positive. The significant jump in net profit led to a notable increase in Earnings Per Share (EPS), which climbed from NPR 10.56 to NPR 14.70. The company also maintains a healthy financial structure, with a paid-up capital of NPR 144 million and robust reserves, including a catastrophe reserve of NPR 10.26 million and a special reserve of NPR 123 million. These reserves provide a solid financial cushion against unforeseen events and demonstrate the company’s adherence to regulatory requirements. The net worth per share of NPR 153 further confirms the company’s financial health and stable shareholder value.
Strategic Outlook and Conclusion
Prabhu Insurance’s performance in FY 2024/25 is a compelling narrative of growth, efficiency, and stability. By increasing its premium collections and insurance fund, the company has expanded its market share and strengthened its long-term financial foundation. The significant rise in profit and EPS, coupled with a more efficient expense structure, showcases a well-managed business model. With a strong capital and reserve base, Prabhu Insurance is well-positioned to leverage its momentum to further expand its reach and continue providing reliable services to policyholders, cementing its position as a key player in Nepal’s non-life insurance sector.
