November 19: The net profit of life insurance companies in Nepal have increased by an average of 24.28 percent in the first quarter of the current fiscal year 2020/21.

The figure is based on financial statements of the first quarter made public by 19 life insurance companies operating in Nepal.

The profit of commercial banks and other sectors has declined during the review period due to coronavirus. However, life insurance companies have recorded double-digit profit.

Insurance companies say that they have felt very little impact of coronavirus compared to other sectors.

Insurance companies had made net profit of Rs 1.01 billion during the first quarter of the last fiscal year. The profit during the corresponding period of the current fiscal year has soared by Rs 246.7 million to Rs 1.26 billion.

Chairman of Life Insurance Providers’ Association of Nepal Nirmal Kaji Shrestha, who is also the CEO of Metlife Insurance, says that the insurance sector has not been affected much by the coronavirus pandemic.

“Our customers have given continuity to their insurance policy even during the current crisis,” said Shrestha, adding. “New businesses have been opening despite the risk of coronavirus. As a result, the insurance business has flourished.

Nepal Life Insurance Company, Prime Life Insurance Company, National Life Insurance Company and Surya Life Insurance Company are the frontrunners is recording profits during the first quarter of the current fiscal year.

According to the available data, the combined profits of these four companies exceed Rs 100 million.