The 14 life insurance companies operating in Nepal recorded a combined net profit of more than Rs 5.44 billion in FY 2025/26, according to their fourth-quarter financial statements. However, the sector’s overall profit declined by 10.53 percent compared with the previous fiscal year.
The companies had collectively earned Rs 6.086 billion in FY 2024/25, meaning their combined profit fell by more than Rs 640 million in one year. The decline in profits at several major insurers contributed significantly to the sector’s weaker overall performance.
Despite the decline, most life insurance companies remained profitable. IME Life Insurance reported the highest profit at Rs 584.24 million, followed by Reliable Nepal Life Insurance with Rs 582.60 million. Citizen Life Insurance recorded the strongest year-on-year growth, with its profit increasing 106.63 percent to Rs 390.80 million.
Other notable performers included Life Insurance Corporation Nepal, whose profit increased 28.45 percent to Rs 405.78 million, and Sanima Reliance Life Insurance, which recorded a 1.69 percent increase to Rs 383.87 million.
Several major insurers, however, reported declining profits. MetLife Nepal’s profit fell 55.29 percent to Rs 379.28 million, while Himalayan Life Insurance recorded a 41.90 percent decline to Rs 317.77 million. Nepal Life Insurance’s profit decreased 15.02 percent to Rs 465.45 million, while Sun Nepal Life Insurance’s profit fell 22.84 percent to Rs 418.60 million.
The government-owned Rastriya Jeevan Beema Company moved from a profit of Rs 21.48 million in the previous fiscal year to a net loss of Rs 23.80 million.
Life insurance coverage has continued to expand as people increasingly use insurance for financial protection, disciplined savings and long-term financial planning. Insurers are also expanding branches and digital services to reach customers in rural and remote areas.
Despite the decline in sector-wide profitability, the continued profitability of most insurers and strong growth recorded by companies such as Citizen Life indicate that Nepal’s life insurance market still has considerable potential. Improving claim settlement, service quality, transparency and financial literacy will be important for expanding insurance coverage and strengthening public confidence.
