KATHMANDU, May 14: Profits of non-life insurance companies fell sharply by 47.23 percent in the third quarter of the current fiscal year (FY 2025/26), as mounting liabilities from natural disasters and damages caused during the September 8–9 unrest weighed heavily on the sector. According to the Nepal Insurance Authority (NIA), non-life insurers earned Rs 1.27 billion in profits over the nine-month period, compared to Rs 2.41 billion during the same period last fiscal year.
Analysts noted that the steep decline was driven by excessive financial liabilities stemming from the Gen Z-led protests and violence seven months ago, coupled with recurring natural disasters. A total of 3,303 claims were filed across 14 non-life insurers, amounting to Rs 23.45 billion, though only about 25 percent of these claims have been settled. Nepal Reinsurance Company received 2,862 reinsurance claims worth Rs 16.62 billion from non-life insurers, underscoring the scale of the financial strain.
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Government assessments revealed that the September protests caused nationwide disruption, resulting in damages worth Rs 84.45 billion and the loss of 2,353 jobs. The unrest damaged 2,671 buildings, accounting for Rs 39.31 billion in losses, while 12,659 vehicles were destroyed, leading to losses of Rs 12.93 billion. Private sector losses were estimated at Rs 33.54 billion, community and other sectors suffered Rs 5.97 billion in damages, and the government and public sector alone faced losses amounting to Rs 44.93 billion.
Natural disasters further compounded the insurers’ liabilities. Landslides and floods on October 4–5 caused property damage exceeding Rs 12 billion. Between April 14 and 29, the National Disaster Risk Reduction and Management Authority recorded 616 disaster-related incidents nationwide, with fires alone accounting for damages worth nearly Rs 97.5 million.
Despite the sector-wide downturn, some insurers managed to post profits. Oriental Insurance led the pack, recording Rs 306.69 million in profit—a significant turnaround from its Rs 138.34 million loss in the same period last year. The state-owned Rastriya Beema Company followed suit with Rs 288.95 million in profit, while Prabhu Insurance secured third place with Rs 211.55 million. In contrast, IGI Prudential Insurance saw its profit nosedive by 99.83 percent, falling to just Rs 438,000.
Other insurers reported heavy losses. National Insurance recorded a loss of Rs 176.49 million, while United Ajod Insurance incurred a loss of Rs 69.79 million, reflecting the severe financial challenges facing the industry.
