Siddhartha Premier Insurance Posts NPR 713.1 Million Profit
12th August 2025, Kathmandu
Based on its unaudited financial results for the fourth quarter of fiscal year 2024/25, Siddhartha Premier Insurance posted a net profit of NPR 713.1 million, representing a 3.63% increase year-on-year.
SPIL Reports Profit Growth
This growth was supported by an 11.58% rise in net premium income and a 16.02% expansion of its insurance fund to NPR 5.752 billion. The company’s key financial indicators also showed strength, with an annualized EPS of NPR 25.41 and a net worth per share of NPR 274.56. This performance demonstrates the insurer’s resilience and effective management in a competitive market.
A Detailed Look at Siddhartha Premier Insurance’s Financial Performance
Siddhartha Premier Insurance (SPIL) has once again demonstrated its stability and growth potential by releasing a strong unaudited financial report for the fourth quarter of FY 2024/25. Despite facing a challenging economic environment, the general insurance provider achieved a notable increase in its core profitability and strengthened its financial position, offering a positive outlook for investors and policyholders.
The company’s bottom line saw a healthy uptick, with a net profit of NPR 713.1 million, a 3.63% improvement from the NPR 688.1 million recorded in the same period last year. This consistent growth points to the company’s ability to maintain a profitable business model, which is a crucial indicator of its operational efficiency and robust risk management practices. The results show that the insurer has effectively controlled its expenses and optimized its investment returns, even in a competitive market landscape.
Growth in Core Business and Reserves
One of the most impressive aspects of the report is the significant growth in the company’s insurance fund. This fund, which acts as a financial cushion to cover future claims, expanded by an impressive 16.02%, reaching NPR 5.752 billion. The growth of this fund is a critical metric for any insurance company, as it directly reflects its capacity to meet its obligations to policyholders and manage unexpected, large-scale claim events. A stronger insurance fund provides a higher degree of financial security and stability, which is essential for building and maintaining customer trust.
Furthermore, the company’s core business activity, measured by net premium income, also saw a robust increase of 11.58%, reaching NPR 2.0576 billion. This is particularly noteworthy because the total premium income experienced a slight decline. The increase in net premiums suggests that SPIL is improving its underwriting efficiency and focusing on more profitable insurance segments. This strategic shift allows the company to generate more earnings from its premium collection while managing its risk exposure more effectively.
Key Financial Metrics and Shareholder Value
Siddhartha Premier Insurance’s financial ratios highlight its improved profitability and value creation for shareholders. The company’s annualized Earnings Per Share (EPS) stands at NPR 25.41, a direct result of the increase in its net profit. An improved EPS is often a key driver for share price growth and can signal the company’s potential to distribute higher dividends in the future.
Additionally, the net worth per share has reached NPR 274.56, reinforcing the company’s strong financial foundation. This metric indicates the value of the company’s assets attributable to each share, providing a clear picture of its underlying financial health. SPIL’s paid-up capital of NPR 2.8065 billion and substantial reserves—including a Special Reserve of NPR 2.50 billion and a Catastrophe Fund of NPR 224.3 million—further enhance its solvency and resilience. These robust reserves prepare the insurer for major natural disasters or other large-scale events that could result in a surge of claims.
Market Position and Future Outlook
Siddhartha Premier Insurance has established itself as a leading non-life insurance provider in Nepal, and its Q4 FY 2024/25 results underscore its ability to adapt and thrive in a dynamic market. The company’s focus on a balanced portfolio of general insurance products and strategic investments has been instrumental in its consistent performance.
Looking forward, the company is poised for continued growth. Industry trends in Nepal indicate a greater push for insurance penetration, especially with the rise of micro-insurance and digital channels. SPIL is well-positioned to capitalize on these opportunities by optimizing its claim settlement processes and leveraging technology to enhance customer engagement. By maintaining a strong financial position, prudent management, and a focus on operational efficiency, Siddhartha Premier Insurance is on a solid trajectory to deliver sustainable returns and solidify its place as a cornerstone of Nepal’s insurance market.
For More: SPIL Reports Profit Growth
