NLG, Shikar top performers among non-life insurance cos in 2012-13

KATHMANDU, SEP 23 - 2013

The NLG Insurance Company topped the list of policy issuance, while the Shikar Insurance collected the most premiums in the last fiscal year 2012-13.

According to the Insurance Board of Nepal (IBN), the company issued 159,156 policies in the segment last fiscal year, which is the highest among non-life insurance companies. Shikhar, on the other hand, collected premiums worth Rs 922.97 million, which is the highest among insurers.

A total of 17 insurers, including the Rastriya Beema Sasthan, issued a total of 790,498 policies and collected a total premium of Rs 8.98 billion last fiscal year. The NLG is followed by the Siddhartha Insurance , the Lumbini General, the Nepal Insurance and the Alliance Insurance companies as the top five insurers in terms of policy issuance.

The IBN statistics shows that the NLG issued 129,002 policies for automobiles, 16,128 fire insurance policies and 703 policies for marine insurance. The NLG has collected premiums worth Rs 650.84 million. “Third party insurance by motorists particularly helped to boost policies in recent years,” said an official of the NLG.

The Siddhartha Insurance issued 78,918 policies in a year. The Lumbini General Insurance issued 78,481 policies, followed by the Nepal Insurance Company (70,837 policies) and the Alliance Insurance (60,262 policies) round out the top five in the category.

From the segment of top premium collectors, Shikhar is followed by the Himalayan General Insurance , the Nepal Insurance , the NLG and the Siddhartha Insurance .

Of the Shikhar’s premium collection of Rs 922.97 million, it received its biggest contribution from vehicle related insurance products, which contributed Rs 335.77 million in premiums.

With a premium collection of Rs 898.05 million, the Himalayan General Insurance secured second position.  Shreeman Karki, director at the Insurance Board of Nepal said the government’s regulation to make third party insurance mandatory while renewing vehicles helped increase the insurance premium significantly last year. The companies collected premium worth Rs 8.1 billion in 2011-12, but the figure increased the following year. “The increasing number of vehicle users in recent times has helped increase both the number of policies, and premium amount, in vehicle insurance,” he added.

Including the Rastriya Beema Sansthan company, which carries out both life and non-life insurance, there are a total of 17 insurance companies that provide non-life insurance. These companies issued a total of 790,498 policies and collected Rs 8.9 billion in premiums by the end of the last fiscal year.

These insurance companies have been insuring economic activities under five headings in non-life insurance, related with: fire, marine, aviation, automobiles, construction and miscellaneous. The companies have issued a combined 529,220 policies, the highest being automobile related insurance, while only 87 policies were granted in aviation related insurance.

Karki said the low number of policies in the aviation sector was due to its small market size, along with the high risk that is embedded in insuring the sector. “Also, there is a high risk in keeping a large amount of retention in the segment, which has made insurers reluctant to increase the policies for aviation.”

Karki expressed hope for increasing the premium in non-life insurance in the future, due to the growing attraction for cattle and other agricultural insurance.

The companies paid Rs 3.19 billion in claim settlements for non-life insurance last year.

Nin-Life Insurance Companies’ Performance Compared

Companies  >>  No of policies issued  >>  Premium collection

Nepal Insurance     70,837    Rs 684.91 million

The Oriental Insurance     19,193    Rs 546.35 million

Rastriya Beema Sansthan    20,705    Rs 576.19 million

National Insurance     25,541    Rs 482.56 million

Himalayan General Insurance     37,966    Rs 898.05 million

United Insurance     24,199    Rs 390.31 million

Premier Insurance     21,809    Rs 329.65 million

Everest Insurance     8,043    Rs 308.53 million

Neco Insurance     38,945    Rs 412.39 million

Sagarmatha Insurance     60,201    Rs 735.01 million

Alliance Insurance     60,262    Rs 594.84 million

NB Insurance     9,460    Rs 74.73 million

Prudential Insurance     17,192    Rs 270.56 million

Shikhar Insurance     59,590    Rs 922.97 million

Lumbini General Insurance     78,481    Rs 508.95 million

NLG Insurance     159,156    Rs 650.84 million    

Siddhartha Insurance     78,918    Rs 601.99 million

Source: The Kathmandu Post

Siddhartha, Lumbini, NLG insurance Companies post growth in revenue and net profit, Himalayan General Insurance makes a surprising comeback.

nepalstocks, Aug 15, 2013

NLG Insurance has posted a 12.90% rise in profit for FY 2069/70 as net income grew to Rs 14,37,12,000 from Rs 12,72,90,000. The company has raised its paid up to Rs 27,00,00,000 from Rs 15,75,00,000 reported in the previous fiscal. 

Q4 Report of NLG Insurance: CLICK HERE

Siddhartha Insurance profit rose 45.21% over last fiscal’s 40.09 million to reach Rs 58.22 million in the FY 2069/70. The company has increased its paid up to Rs 13.20 crore from Rs 10.00 crore shown for the last fiscal. The company’s EPS stands at Rs 44.11 and net worth at Rs 182.06.

Q4 Report of Siddhartha Insurance: CLICK HERE

Lumbini General Insurance has posted 40.09% rise in profit for the FY 2069/70. Profit increased to Rs 41.31 million from Rs 29.49 million in the last fiscal corresponding period. The company presented a paid up figure of Rs 15.34 crore as against Rs 14.06 crore reported in the last fiscal. LGI’s EPS stands at Rs 26.93 and net worth at Rs 158.55.

Q4 Report of Lumbini General Insurance: CLICK HERE

Himalayan General Insurance Company made a healthy comeback in FY 2069/70 from the loss suffered in the previous fiscal. The company had reported a loss of Rs 5.46 crore last fiscal, but profit jumped 230.36 % to Rs 71.30 crore in FY 2069/70. The company has made no change in its paid up which stood at Rs 10.08 crore. HGIC’s EPS stands at Rs 70.73 and net worth at Rs 197.54.

 Q4 Report of Himalayan General Insurance: CLICK HERE

IB mulls zero depreciation motor insurance product

KATHMANDU, April 28, 2012

The Insurance Board is mulling over directing insurance companies to introduce motor insurance policies with zero depreciation coverage.

If such a product is launched people who have insured vehicles can claim back every penny that has gone into repair work following an accident, meaning insurance companies cannot deduct any amount in the name of depreciation.

Currently, insurance companies are allowed to deduct certain amount from the total claim amount depending on types of parts replaced during repair work.

For instance, an amount of up to 50 percent can be deducted in case parts are made of rubber, plastic and nylon. Similarly, spare parts made of fiber glass are subject to 30 percent deduction. On other parts, other than those made of glass, deduction of anywhere from five percent to 50 percent can be made depending on the age of the part.

It is the same on repair work. For instance, insurance companies can deduct five percent of the amount incurred in repair if the vehicle is less than six months old. This amount can go up to 50 percent if the vehicle is over four years old. This means if the total repair cost amounts to Rs 100,000, insurance companies are entitled to deduct up to Rs 50,000 as depreciation.

“Because of these provisions, a person who has damaged a vehicle in an accident cannot get back full coverage amount despite paying premium amounts on time,” Binod Aryal, executive director of the Insurance Board, told Republica. “To end this predicament, we are planning to instruct insurers to introduce zero depreciation motor insurance product which offers full claim coverage on the value of parts replaced.”

If the product is launched, customers can also claim back money spent on items like engine oil, Aryal said. “This is to ensure people do not have to spend any extra money upon purchase of this particular motor insurance product,” he added.

This privilege, however, will not come cheap as people will also have to be ready to pay higher premium amount if they decide to purchase the product.

“It will definitely be expensive than the regular motor insurance product available in the market but we will try to fix the price in a way it does not create a hole in clients´ pockets,” Aryal said.

However, various insurance companies told Republica that Nepali market may not respond well to such a product as premium rates are likely to be very high.

Source: Republica