Strong Growth in Net Insurance Premium: Rising Expenses Impact Profit

Sun Nepal Life Insurance has published its second-quarter financial report for the current fiscal year. The company’s net profit has decreased by 14.05% compared to the same period last year, reaching Rs. 282.27 million. In the previous year, the company had recorded Rs. 328.41 million in net profit.

Financial data

🔹 Net Profit: Rs. 282.27 million (14.05% decline)
🔹 Net Earned Premium: Rs. 2.18 billion (37.81% increase)
🔹 Total Income: Rs. 2.94 billion (44.28% increase)
🔹 Income from Investment & Loans: Rs. 437.89 million (0.57% increase)
🔹 Total Expenses: Rs. 2.65 billion (55.47% increase)
🔹 Earnings Per Share (EPS): Rs. 14.25 (Increase of Rs. 3.99)
🔹 Net Worth Per Share: Rs. 166.12
🔹 Paid-Up Capital: Rs. 3.96 billion
🔹 Retained Earnings: Rs. 771.7 million

Increase in income?

📈 Net Earned Premium Increased by 37.81% – Indicating growth in the insurance business.
📈 Total Income Increased by 44.28% – Driven by higher insurance premium collection.
📉 Expenses Rose by 55.47%, Leading to Lower Profit – Increased operational and administrative costs impacted the bottom line.

Improvement in Earnings Per Share (EPS)

Despite the decline in profit, the EPS improved from Rs. 10.26 to Rs. 14.25, indicating better per-share earnings performance.

Sun Nepal Life Insurance has seen strong growth in premium income, but rising expenses have significantly impacted its profit margins. However, the increase in EPS is a positive sign for investors.