लाइफ इन्स्योरेन्स कर्पोरेशन (नेपाल) को चौथो त्रैमासिक वित्तीय विवरणLife Insurance Corporation (Nepal) Fourth Quarter Financial Results

Quarterly Financial Results for Fourth Quarter, F.Y. 2082/83 B.S.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Fig in NPR.

Particulars Unaudited At the end of this Quarter Audited At the end of	Immediate	Previous Year
Assets:
Goodwill & Intangible Assets	-	48,600
Property and Equipment	349,287,391	392,420,903
Investment Properties	-	-
Deferred Tax Assets	53,603,240	-
Investment in Subsidiaries	-	-
Investment in Associates	-	-
Investments	131,497,132,789	117,340,391,062
Loans	20,155,287,947	21,409,869,606
Reinsurance Assets	-	-
Current Tax Assets	68,513,368	179,358,463
Insurance Receivables	4,742,595	18,883,296
Other Assets	6,170,736	1,016,951,176
Other Financial Assets	3,635,045,379	3,408,799,099
Cash and Cash Equivalent	3,535,067,128	2,060,047,872
Total Assets	159,304,850,574	145,826,770,077
Equity:
Share Capital	5,500,000,000	5,500,000,000
Share Application Money Pending Allotment	-	-
Share Premium	498,012,562	498,012,562
Catastrophe Reserves	773,554,528	732,976,827
Retained Earnings	2,656,118,649	3,452,279,690
Other Equity	355,064,351	394,157,144
Total Equity	9,782,750,090	10,577,426,223
Liabilities:
Provisions	172,009,394	167,555,959
Gross Insurance Contract Liabilities	148,178,748,844	133,632,472,759
Deferred Tax Liabilities	-	56,565,302
Insurance Payable	15,412,812	54,254,357
Current Tax Liabilities	-	-
Borrowings	-	-
Other Liabilities	458,057,248	463,346,812
Other Financial Liabilities	697,872,188	875,148,665
Total Liabilities	149,522,100,485	135,249,343,854
Total Equity and Liabilities	159,304,850,574	145,826,770,077

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS Q4 (17-07-2025 TO 16-07-2026)

Fig in NPR.

Disclosure as per Section 84(3) of Insurance Act, 2079

1 Solvency Ratio related disclosure:

The Solvency Ratio for the year ended Asadh 32, 2082 is declared as 1.6 which is above the requirements prescribed by Nepal Insurance Authority.

2 Reinsurance related disclosure:

A. The Company currently has reinsurance arrangements with Nepal Re and Himalayan Re in Nepal and Hannover Re in Malaysia.

B. Reinsurance Premium ceded to the reinsurers up to FY 2025-26 has been already made, is in accordance with the directives issued by Nepal Insurance Authority (NIA) from time to time and as per the terms already agreed between the insurer and reinsurer.

C. Claims recoverable from reinsurers are based on the cession made in respect of each risk. The estimated recoverable is aligned with the provisions made by the company for outstanding claims, ensuring consistency between the loss provisions and the amounts expected from reinsurance recoveries

D. Although we mitigate our exposures through prudent reinsurance arrangements, the primary responsibility for fulfilling claims made by policy holders' rests with the Company. Default of reinsurers does not negate this obligation and in that respect the Company carries a credit risk up to the extent ceded to each reinsurer. Proper provision to mitigate such credit risk has already incorporated in our Valuation report as prescribed by the Regulator

3 Details regarding legal proceeding:

Certain legal cases concerning tax matters are currently pending before the Supreme Court, following our successful outcomes in the Revenue Tribunal.

4 Corporate Governance:

We declare that we comply with the provision of Corporate Governance Directives, 2075 issued by Nepal InsuranceAuthority and other prevailing laws & regulation to which company shall adhere to.

5 Regulatory limit on expenses ratio:

Particulars Current Year Upto This Quarter End (YTD) Previous Year Upto This Quarter End (YTD)
Total Management Expenditure	1,143,027,648	1,091,202,813
Agent related Expenditure	481,402,295	435,936,688
Total Premium	21,248,884,587	19,938,305,489
First Premium	3,537,315,368	3,038,194,130

Total Management Expenditure as percentage of Total Premium 5.38% 5.47%

Agent related Expenditure as percentage of First Premium 13.61% 14.35%

6 Any other disclosure as deemed relevant

The preparation of the financials in accordance with IFRS 17 is currently underway, including the application of the relevant recognition, measurement, presentation, and disclosure requirements.

Disclosure as required by Rule 26 (1) of Annexure 14 of Securities Listing and Issue Directives, 2073

Financial Statements

1 The Financial Statements for the company for fourth quarter of FY 2082-83 has been published along with this report. The interim financial reports have been prepared as per the Quarterly Financials Circular, 2080 issued by Nepal Insurance Authority.

2 Major Financial Indicators

Earnings per Share	7.38	177.87
PE Ratio	107.05	2,896.45

3 Management Analysis

The transactions of the company for the Fourth Quarter of FY 2082-83 can be summarized as belows:

Particulars Current Year (This Quarter) Current Year (Upto this Quarter (YTD)) Corresponding Previous Year (This Quarter) Corresponding Previous Year (Upto this Quarter (YTD))
Income:
Gross Earned Premiums	6,075,788,091.92	21,248,884,587	5,899,314,998	19,938,305,489
Premiums Ceded	(31,386,917)	(103,464,935)	(27,003,306)	(111,420,002)
Net Earned Premiums	6,044,401,175	21,145,419,652	5,872,311,692	19,826,885,487
Commission Income	6,238,618.04	10,457,190	9,449,096	14,027,238
Other Direct Income	89,638,835.98	272,984,728	91,635,067	278,496,240
Interest Income on Loan to Policyholders	540,948,020.98	2,302,095,089	612,832,407	2,404,983,130
Income from Investments and Loans	2,471,207,367.67	9,738,848,825	2,408,156,269	9,806,775,916
Net Gain/(Loss) on Fair Value Changes	-	-	-	-
Net Realised Gains/(Losses)	-	-	-	-
Other Income	16,760	104,726	37,996	70,996
Total Income	9,152,450,778	33,469,910,210	8,994,422,527	32,331,239,007
Expenses:
Gross Benefits and Claims Paid	3,742,978,237.03	13,063,654,515	3,935,922,392	12,590,236,613
Claims Ceded	(14,811,238)	(47,196,877)	(25,104,721)	(37,263,272)
Gross Change in Contract Liabilities	3,779,466,683.15	14,843,731,148	3,399,206,720	14,285,598,617
Change in Contract Liabilities Ceded to Reinsurers	-	-	-	-
Net Benefits and Claims Paid	7,507,633,682	27,860,188,785	7,310,024,391	26,838,571,958
Commission Expenses	453,324,472	1,525,758,476	494,580,068	1,477,418,120
Service Fees	45,333,009	158,590,647	44,042,338	148,701,641
Other Direct expenses	-	-	-	-
Employee Benefits Expenses	149,592,882	470,202,665	162,098,102	443,160,513
Depreciation and Amortization Expenses	13,482,322	53,575,227	18,553,602	55,072,895
Impairment Losses	(3,078,198)	4,843,577	-	-
Other Operating Expenses	354,362,021	597,736,722	338,341,189	573,683,546
Finance Cost	4,024,349	16,669,457	3,630,580	19,285,859
Total Expenses	8,524,674,539	30,687,565,556	8,371,270,270	29,555,894,533
Net Profit/(Loss) For The Year Before Share of Net Profits of Associates Accounted for Using Equity Method and Tax	627,776,239	2,782,344,653	623,152,256	2,775,344,474
Share of Net Profit of Associates accounted using Equity Method	-	-	-	-
Profit Before Tax	627,776,239	2,782,344,653	623,152,256	2,775,344,474
Income Tax Expenses	542,466,565	2,376,567,642	543,280,363	2,459,450,499
Net Profit/(Loss) For The Year	85,309,674	405,777,012	79,871,893	315,893,975
Earning Per Share
Basic EPS	-	7.38	-	5.74
Diluted EPS	-	7.38	-	5.74

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Fig in NPR.

Particulars Current Year (This Quarter) Current Year (Upto this Quarter (YTD)) Corresponding Previous Year (This Quarter) Corresponding Previous Year (Upto this Quarter (YTD))
Net Profit/(Loss) For The Year	85,309,674	405,777,012	94,189,436	236,022,082
Other Comprehensive Income	(91,994,216)	(330,505,626.29)	(373,364,085.94)	83,900,162.50
Total Comprehensive Income	(6,684,542)	75,271,385.56	(279,174,650.20)	319,922,244.26
Total Premium	21,248,884,587	19,938,305,489
Net Profits	405,777,012	315,893,975
Life Insurance Fund	146,814,355,653	132,926,616,340
Total investments	131,497,132,789	117,340,391,061

4 Details of Share Transactions

The shares of the companies are listed and actively traded in Nepal Stock Exchange Limited. The details of the share transactions of the company during the quarter are mentioned below

Maximum Rate 872.00 No. of Transaction 4,294

Minimum Rate 763.00 No. of Transaction days 64

Closing Price 789.80

5 Problems and Challenges:

Internal

Increase in the surrender claim

External

• Decreasing interest rate on fixed deposit

• Limited scope of secured investment

6 Strategies to overcome challenges

• Maintaining appropriate portfolio mix

• Moving towards digitalization

• Diversifying the investment

7 Climate Risk

The Company recognizes climate-related risks as an emerging area that may affect mortality, investments, operations, and financial performance. The Company has adopted policies and risk management practices to identify, assess, and mitigate climate-related risks in line with regulatory guidelines issued by the Nepal Insurance Authority. Management regularly reviews climate risk exposure and its potential financial impact on the Company's operations and investments.

8 Declaration by CEO:

I, CEO of the Company take responsibility for the truthfulness of the information and details disclosed in this report. I also hereby declare that to the best of my knowledge and belief, the information disclosed in this report are true, fair and complete and have not concealed any matters that can adversely affect the investment decision of the investors.

DISCLOSURES IN BOTH GROUP AND STANDALONE FINANCIAL STATEMENTS DISCLOSURES: OTHER DETAILS/INDICATORS

Particulars Current Year Upto This Quarter End (YTD) Previous Year Upto This Quarter End (YTD)
1. Total Inforce Policy count	708,057	691,871
2. Total no of policy issued during the year	66,355	64,867
3. First Year Premium (including single premium)	3,537,315,368	3,038,194,130
4. Single Premium	1,063,591,631	579,489,292
5. Renewal Premium	17,711,569,219	16,900,111,359
6. Total Benefits and Claims Paid in Count	30,270	32,254
7. Outstanding Benefits and Claims in Count	12,376	9,754
8. Gross Claim outstanding (Amount)	1,364,393,191	992,780,282

9. Declared Bonus rate (FY 2024-25) 41-65 41-65

10. Interim bonus rate FY 41-65 41-65

11. Long Term Investments (Amount)	79,836,029,654	93,320,722,790
12. Short Term Investments (Amount)	51,661,103,135	24,019,668,271
13. Policyholders Loan	20,069,224,249	21,304,806,320
14. Investment in cost value	131,454,386,164	116,856,970,269
15. Life Insurance Fund	146,814,355,653	132,926,616,340
16. Solvency Margin Ratio (As on 16.07.2025)	1.61	1.61