Siddharth Premier Insurance Financial Performance Update For Q2 2082/83
10th February 2026, Kathmandu
Siddharth Premier Insurance (SPIL) has reported a significant downturn in its financial performance for the second quarter of the fiscal year 2082/83. According to the unaudited report released on February 10, 2026 (Magh 28, 2082), the company has transitioned from a profitable position to a net loss, primarily driven by a massive surge in insurance claims following nationwide disruptions and natural disasters.
Siddharth Premier Insurance Financial Performance
The company recorded a net loss of NPR 17.85 crore for the period ending Poush 2082, a sharp contrast to the NPR 22.50 crore net profit reported in the same period of the previous fiscal year.
The “Perfect Storm” of Insurance Claims
The primary reason for this financial reversal is the extraordinary volume of claims processed in late 2025. Siddhartha Premier Insurance emerged as one of the most affected insurers due to its large market share in property and motor insurance.
The Gen-Z Movement: Riots and vandalism during the nationwide “Gen-Z” protests in late Bhadra and early Ashoj 2082 led to billions in property damage. SPIL alone settled approximately NPR 1.68 billion in claims related to this movement—accounting for nearly 40 percent of the industry’s total protest-related payouts.
Ashoj Floods and Landslides: Incessant rainfall on Ashoj 18-19 triggered widespread floods. The company paid out over NPR 1.21 billion for damage to industries, hydropower projects, and private property caused by these natural disasters.
Revenue and Expense Analysis
The widening gap between stagnant income and ballooning expenses has created a significant “underwriting loss.”
Total Income: Fell to NPR 112.53 crore, down from NPR 130.02 crore last year. This was partially due to a decline in Net Interest Income, which dropped to NPR 74.66 crore.
Total Expenses: Surged to NPR 138.04 crore from NPR 96.11 crore. The increased expense reflects the immediate impact of paying out final and interim claims to policyholders.
Loss Ratio: The surge in claims pushed the loss ratio significantly higher, which is a common trend across Nepal’s non-life insurance sector this quarter.
Impact on Shareholder Metrics
The net loss has directly affected the company’s valuation and per-share indicators, causing a shift in investor sentiment on the Nepal Stock Exchange (NEPSE).
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Earnings Per Share (EPS): Plunged to Negative NPR 12.72, compared to a positive NPR 16.03 last year.
Net Worth Per Share: Remains relatively healthy at NPR 241.31, providing a buffer against the current earnings volatility.
P/E Ratio: Currently stands at a negative 56.35, reflecting the company’s temporary loss status.
Reserve Strength and Solvency
Despite the short-term loss, Siddhartha Premier Insurance maintains one of the strongest reserve pools in the industry, which acts as a safety net during catastrophic years.
Insurance Fund: Over NPR 11.52 billion.
Special Reserve: NPR 2.50 billion.
Catastrophe Fund: NPR 22.78 crore, specifically set aside for events like the Ashoj floods.
Solvency Margin Ratio: Reported at 3.85 percent (385%), which is well above the regulatory requirement, indicating the company has sufficient assets to cover its liabilities.
Conclusion
The latest Siddharth Premier Insurance Financial Performance highlights the vulnerability of the non-life insurance sector to unpredictable socio-political and climatic events. While the NPR 17.85 crore loss is significant, the company’s prompt settlement of over NPR 3 billion in claims has reinforced its reputation for reliability. With a massive investment portfolio of NPR 7.93 billion, the company is positioned to recover as claim volumes normalize in the third and fourth quarters.
