Net profit of life insurance companies down 4.73% in Q2

KATHMANDU: The combined net profit of life insurance companies declined by 4.73% in the second quarter of the current fiscal year.

According to the financial statements published by the companies, the 14 life insurance companies currently in operation earned a combined net profit of Rs 3.32 billion during the review period. In the corresponding period of the previous fiscal year, they had posted a net profit of Rs 3.48 billion.

Of the 14 companies, nine reported growth in net profit, while five saw their earnings decline. Rastriya Jeevan Beema Company recorded the steepest net profit drop of 52.03%.

As most insurance companies invest a significant portion of their funds in fixed deposits at banks and financial institutions, lower interest rates have adversely affected their profitability.

During the review period, Reliable Nepal Life earned Rs 395.8 million in net profit, and Nepal Life Insurance ranked second with a net profit of Rs 339.6 million. National Life Insurance was next with a net profit of Rs 286.8 million.