February 24: The average income of non-life insurance companies has increased by 28 percent amidst COVID-19 pandemic, reveals the second quarterly report published the companies.
Out of 20 non-life insurance companies, 18 non-life insurance have earned profit worth Rs 2.81 billion in this fiscal year against Rs 1.62 billion in the corresponding period of the last FY.
Meanwhile, these companies have collected insurance premium of Rs 15.44 billion in the review period. After the evaluation of these companies, the net profit is expected to increase further.
Due to Covid-19 pandemic, the profit of commercial banks and other companies has declined. Non-life insurance companies say that the impact of COVID pandemic has been less in insurance sector.
Increase in profit of the insurance companies has been attributed particularly to the investment made by the companies in the share market.
Non- life insurance companies can also buy and sell shares in the secondary market. They can invest up to 20 percent of the investible amount in the share market.
Currently, share market is witnessing all time high record with a bullish trend leading to an increase in the profit earned by companies. Sunil Ballav Pant, CEO of NLG insurance says, due to the investment in shares, the profit of non-life insurance companies have increased even during the time of Covid-19 pandemic.
In terms of profit earning, Neco insurance leads the list with profit worth Rs 26.40 million. Shikhar Insurance is second in the list with net profit of Rs 24.14 million. Likewise, Premier Insurance earned profit worth Rs 18.69 million.
In the review period, 10 non-life insurance companies earned profit more than Rs 100 million. Sagarmatha, NLG, IME General, Siddhartha Insurance, Nepal Insurance, Lumbini General Insurance and National Insurance Company have earned profit more than Rs 100 million. Net profit of the other companies is below Rs 100 million.