National Insurance Company Reports 43% Growth in Gross Premium but Increases Losses in FY 2081/82 Q4
National Insurance Company posted a 43.29% rise in total gross premium income. However, the company’s retained earnings deepened their negative balance to NPR 1.42 billion.
ShareSanskar | Shrawan 28, 2082
National Insurance Company presents a striking financial paradox in its latest report. While gross premium income surged impressively by 43.29% to NPR 1.29 billion, the company’s net loss deepened sharply by 134%, reaching NPR 623.9 million. This alarming loss is largely driven by a 158.95% increase in reinsurance expenses, from NPR 282.4 million to NPR 731.1 million, highlighting significant challenges in risk management and costly reliance on external risk transfers.
Consequently, net premium income declined by 9.44% to NPR 560.6 million, indicating erosion in the core revenue available after reinsurance costs. The company’s retained earnings remain deeply negative at NPR 1.42 billion, posing serious solvency risks despite maintaining reserves of NPR 145 million in special reserves and NPR 32.1 million in a catastrophe fund. Operational losses have widened from NPR 266.7 million the previous year to NPR 623.9 million, signaling urgent need for structural reform.
To recover, National Insurance must strengthen underwriting discipline, optimize reinsurance arrangements, improve operational efficiency through cost control and technology, and strategically reposition toward profitable market segments. Regulatory compliance and capital adequacy must also be addressed to restore stakeholder confidence. This situation underscores the critical importance of balancing revenue growth with effective risk and cost management. National Insurance’s ability to execute a comprehensive transformation will determine its survival and long-term contribution to Nepal’s evolving insurance sector.
