Trust Micro Insurance Reports Strong Premium Growth Despite Profit Decline
17th August 2025, Kathmandu
Trust Micro Insurance Company Limited has released its unaudited financial report for the fiscal year 2024/25, revealing a mixed but promising performance.
Trust Micro Insurance Reports Premium Growth
While the company’s net profit saw a slight dip, its top-line growth, particularly in premium collection, was explosive, signaling strong market penetration and expanding business reach in Nepal’s micro-insurance sector.
Profit and Premium Performance
The company’s net profit for the fiscal year was NPR 4.639 million, a marginal decline from NPR 6.175 million reported in the previous year. This slight decrease in profitability comes despite a massive surge in the company’s core business metric: premium income.
Trust Micro Insurance saw a staggering increase in its total premium collection, which soared to NPR 135.1 million in 2024/25, a monumental jump from just NPR 4.78 million the year before. This remarkable growth points to the company’s success in expanding its customer base and increasing trust in its micro-insurance products. The net premium also saw a significant boost, rising from NPR 1.267 million to NPR 45.8 million, reflecting improved underwriting and a better ability to retain premiums.
This combination of rising revenues and falling profits suggests that while business is booming, the company is grappling with increased operational costs and a higher volume of claims, a common challenge for rapidly expanding insurance providers.
Capital and Reserves
The financial report also provides a snapshot of the company’s capital structure and reserves, which are crucial for assessing its long-term stability and ability to handle risks. Trust Micro Insurance has a paid-up capital of NPR 525 million. The company’s reserves include:
- Special Reserve: NPR 5.931 million
- Catastrophe Fund: NPR 593,000
- Reserve Fund: NPR 5.219 million
These reserves act as a financial buffer, strengthening the company’s ability to meet future obligations and withstand unforeseen risks, such as a high number of claims from a single major event.
Market Positioning and Outlook
As a key player in Nepal’s micro-insurance sector, Trust Micro Insurance focuses on providing affordable and accessible coverage to low-income individuals and underserved communities. The impressive growth in premium income highlights the increasing demand and awareness for such products, particularly in rural areas where traditional insurance penetration has been historically low.
Looking ahead, the company’s primary challenge will be to balance its rapid expansion with effective cost and claims management. The slight decline in profit serves as a reminder of the need to optimize operations. Trust Micro Insurance is expected to focus on strengthening its risk management practices, expanding its distribution network, and developing new, innovative products to cater to the diverse needs of Nepal’s population.
In conclusion, Trust Micro Insurance’s fiscal year 2081/82 was a period of significant growth and strategic expansion. While the dip in net profit signals some operational challenges, the company’s strong performance in premium collection and its solid capital base lay a robust foundation for continued growth and its potential to be a leader in making financial services more inclusive across Nepal.
