Life insurance companies have posted significant growth in their profits in the current fiscal year. According to the unaudited financial reports for the third quarter of the current fiscal year, the profits of the insurers increased by 78.12 percent in the nine months of FY 2022/23. The 17 life insurance companies that are currently in operation, have posted net profits amounting to Rs 3.73 billion, an increment of Rs 1.64bn from Rs 2.09bn in the same period of the last fiscal year. However, the overall business of life insurance companies grew marginally in this fiscal year. According to Nepal Insurance Authority (NIA), the life insurance business grew by a meager 2.19 percent in the nine months of FY 2022/23. The statistics of NIA show life insurance companies collected premiums amounting to Rs 104.73bn in the review period compared to Rs 102.54bn during the same period of the last fiscal year.

Insurers say their profits improved mainly due to the high-interest rates on deposits of banks and financial institutions. Insurance companies keep most of their investable capital in fixed deposits of commercial banks.

Over the past year, banks increased the interest rates of deposits in response to a prolonged liquidity crunch benefitting institutional depositors such as insurance companies. According to insurers, their profits may increase further after the actuarial valuation. However, such an assessment will be done after the completion of the fiscal year, during which up to 10 percent of the insurance fund can be transferred to the profit and loss account. Suryajyoti Life Insurance has topped the chart in terms of net profit earnings. The company posted a net profit of Rs 537.683m in the nine months of the current fiscal year. Nepal Life Insurance Company came second with a net profit of Rs 446.549m followed by Sun Nepal Life Insurance with Rs 444.519m.

Company	Mid-April 2023 (in Rs, in m)	Mid-April 2022 (in Rs, in m)
Suryajyoti Life Insurance	537.683	357.204
Nepal Life Insurance	446.549	-194.561
Sun Nepal Life Insurance	444.519	143.632
National Life insurance	296.925	255.609
Reliable Nepal Life Insurance	285.736	210.656
Met Life Insurance	223.36	181.003
Prime Life Insurance	210.02	189.543
Asian Life Insurance	194.722	184.054
IME Life Insurance	182.450	101.997
Gurans Life Insurance	161.227	131.604
Sanima Reliance Life Insurance	161.043	133.815
Citizen Life Insurance	150.148	146.337
Prabhu Life Insurance	132.391	101.334
Union Life Insurance	129.590	27.274
LIC Nepal Insurance	83.709	6.001
Mahalaxmi Life Insurance	83.239	72.42
Rastriya Beema Sansthan	13.038	49.677