Profits of Nepal’s non-life insurance companies dropped sharply by 47.23 percent in the third quarter of the current fiscal year (FY 2025/26), as rising liabilities from natural disasters and damages caused during the September 8–9 unrest placed heavy pressure on the sector.
According to the Nepal Insurance Authority, non-life insurers posted profits of Rs 1.27 billion during the nine-month review period, down from Rs 2.41 billion recorded in the same period last fiscal year.
Analysts attributed the steep decline primarily to the financial burden created by the Gen Z-led protests and violence that erupted seven months ago, alongside recurring natural disasters across the country. A total of 3,303 insurance claims worth Rs 23.45 billion were filed with 14 non-life insurance companies, although only around 25 percent of those claims have been settled so far.
Meanwhile, Nepal Reinsurance Company received 2,862 reinsurance claims totaling Rs 16.62 billion from non-life insurers, highlighting the growing strain on the insurance industry.
Government assessments showed that the September unrest caused nationwide losses amounting to Rs 84.45 billion and resulted in the loss of 2,353 jobs. The violence damaged 2,671 buildings, causing losses worth Rs 39.31 billion, while 12,659 vehicles were destroyed, accounting for an additional Rs 12.93 billion in damages.
Private sector losses were estimated at Rs 33.54 billion, while community and other sectors suffered Rs 5.97 billion in damages. Government and public sector losses alone totaled Rs 44.93 billion.
Natural disasters further intensified the financial burden on insurers. Landslides and floods on October 4–5 caused property damage exceeding Rs 12 billion. In addition, the National Disaster Risk Reduction and Management Authority reported 616 disaster-related incidents nationwide between April 14 and 29, with fire incidents alone causing damages of nearly Rs 97.5 million.
Despite the challenging environment, some insurers managed to remain profitable. Oriental Insurance emerged as the top performer, posting a profit of Rs 306.69 million after recording a loss of Rs 138.34 million during the same period last year.
The state-owned Rastriya Beema Company followed with profits of Rs 288.95 million, while Prabhu Insurance secured third place with Rs 211.55 million in profits.
In contrast, IGI Prudential Insurance witnessed a dramatic 99.83 percent decline in profits, falling to just Rs 438,000.
Other companies also reported significant losses. National Insurance posted a loss of Rs 176.49 million, while United Ajod Insurance recorded losses amounting to Rs 69.79 million, underscoring the severe financial challenges confronting Nepal’s non-life insurance sector.
