Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Protective Micro Insurance has reported a net profit of Rs 1.275 million in the fiscal year 2080/81 (2023/24), marking a sharp 79.57% rise compared to the Rs 710,000 profit recorded in the previous fiscal year. The notable growth in profitability highlights the company’s expanding presence in Nepal’s micro-insurance market, which has been gaining traction due to increasing demand in rural and semi-urban areas.
According to financial details released by the company, Protective Micro Insurance earned Rs 56.7 million in net insurance premium during the review period, up from Rs 47.3 million in the fiscal year 2079/80 (2022/23). On a broader scale, the company reported a total insurance premium income of Rs 186.9 million—up significantly from Rs 27.8 million a year earlier, reflecting aggressive market expansion and increased policyholder participation.
However, the company’s claim payout declined slightly. The insurer disbursed Rs 20.6 million in net claim settlements in FY 2080/81, compared to Rs 27.3 million in the previous year, potentially signaling improved risk assessment or fewer high-impact claims.
Protective Micro Insurance currently operates with a paid-up capital base of Rs 525 million. As of the end of the fiscal year, its financial reserves remain as follows:
Special Reserve Fund: Rs 2.319 million
Catastrophe Fund: Rs 231,000
Retained Earnings: Rs 533,000
Other Equity Reserves: Rs 1.591 million
In terms of investment activities, the company deployed Rs 481 million in long-term investments and Rs 30 million in short-term instruments, emphasizing its strategy to ensure capital growth and liquidity stability.
The robust performance underscores the resilience and potential of Nepal’s micro-insurance sector, particularly as insurers like Protective Micro Insurance scale up services targeting low-income households and underserved populations.
This comes at a time when Nepal’s insurance sector, guided by the Insurance Board (Beema Samiti), is pushing for stronger financial inclusion through micro-insurance products tailored for agriculture, livestock, health, and small businesses—an approach gaining momentum amid climate risks and rising demand for social protection.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
