Sagarmatha Lumbini Insurance Sees Strong Premium Growth in Q4, Profit Declines on Higher Claim Payments
Wed, Aug 13, 2025 9:07 AM on Latest, Financial Analysis, Company Analysis,
Sagarmatha Lumbini Insurance Limited (SALICO) posted a net profit of Rs. 40.32 Crore in the fourth quarter of FY 2081/82, down 12.53% from Rs. 46.09 Crore in the same period last year. Earnings per share fell to Rs. 15.37 from Rs. 17.58, weighed down by higher claim expenses and lower investment income.
Paid-up capital remained unchanged at Rs. 2.62 Arba, while catastrophe reserves rose by 21.34% to Rs. 22.93 Crore. Retained earnings declined by 9.25% to Rs. 36.65 Crore, but other equity improved by 13.57% to Rs. 50.23 Crore. Total investments stood at Rs. 6.72 Arba, up 4.97% year-on-year, and the insurance fund increased by 4.13% to Rs. 6.88 Arba.
Net premium income grew significantly by 22.86% to Rs. 2.11 Arba. However, income from investment, loan, and other sources dropped by 28.64% to Rs. 34.25 Crore. Net claim payments surged 30.71% to Rs. 1.69 Arba, while commission expenses increased sharply by 48.76% to Rs. 5.69 Crore. Employee benefit expenses decreased by 7.20% to Rs. 56.43 Crore, but other operating expenses rose by 18.45% to Rs. 17.09 Crore.
The company’s net worth per share inched up to Rs. 239.12 from Rs. 236.72, while its price-to-earnings ratio stood at 47.22 times. The solvency ratio remained at a healthy 2.75, indicating strong financial stability.
| Particulars (In Rs '000) | Sagarmatha Lumbini Insurance | ||
|---|---|---|---|
| Q4 2081/82 | Q4 2080/81 | Difference | |
| Paid Up Capital | 2,622,638.20 | 2,622,638.20* | 0.00% |
| Share Premium | 0.00 | 0.00 | - |
| Special Reserves | 2,550,477.45 | 2,550,477.45* | 0.00% |
| Catastrophe Reserves | 229,302.80 | 188,982.19* | 21.34% |
| Retained Earnings | 366,522.64 | 403,873.38* | -9.25% |
| Other Equity | 502,294.05 | 442,291.56* | 13.57% |
| Investments | 6,721,718.41 | 6,403,300.94* | 4.97% |
| Insurance Fund | 6,885,254.39 | 6,612,296.15* | 4.13% |
| Net Premium | 2,113,504.49 | 1,720,209.95 | 22.86% |
| Income from Investment, Loan and others | 342,485.45 | 479,920.29 | -28.64% |
| Claim Payment (Net) | 1,694,018.34 | 1,295,969.22 | 30.71% |
| Commission Expenses | 56,856.88 | 38,221.82 | 48.76% |
| Employees Benefit Expenses | 564,255.51 | 608,007.69 | -7.20% |
| Other Operating Expenses | 170,955.36 | 144,327.75 | 18.45% |
| Net Profit | 403,206.15 | 460,979.87 | -12.53% |
| EPS (In Rs.) | 15.37 | 17.58 | -12.53% |
| Net Worth per Share (In Rs.) | 239.12 | 236.72 | 1.01% |
| PE Ratio | 47.22 | - | - |
| Solvency Ratio | 2.75 | - | - |
