National Life Insurance holds 38th AGM; premium income rises by 10.26 pc

KATHMANDU: National Life Insurance Company Limited has successfully concluded its 38th Annual General Meeting (AGM), reporting a solid business performance in the review year with total insurance premium income rising by 10.26 percent to Rs 22.59 billion.

The AGM, held on Wednesday, was chaired by Company Chairperson Prema Singh. Addressing shareholders, Singh said the global economy remained relatively resilient during the review period of fiscal year 2081/82 (2024/25), despite lingering impacts of the Covid-19 pandemic and geopolitical tensions.

She noted that global inflation, which had surged due to pandemic-related disruptions and geopolitical conflicts, is now on a declining trend. As a result, most central banks across the world have adopted relatively accommodative monetary policies. In the Nepali context, Singh cited estimates from the National Statistics Office, stating that Nepal’s economic growth rate stood at 4.61 percent in fiscal year 2081/82.

However, she cautioned that economic growth could come under pressure in fiscal year 2082/83 due to rising political and social instability, which may affect investment sentiment and overall economic activity.

Reviewing the company’s operational performance, Singh said National Life Insurance recorded satisfactory business growth during the year. Total insurance premium income increased by 10.26 percent to Rs 22.59 billion, reflecting steady expansion in policy issuance and renewals.

During the review year, the company transferred an additional Rs 14.99 billion from operations to total insurance contract liabilities. As a result, total insurance contract liabilities rose by 18.83 percent compared to the previous year, reaching Rs 94.59 billion. The increase reflects growth in the policyholder base as well as higher long-term obligations arising from life insurance contracts.

National Life Insurance also reported substantial payouts to policyholders. The company disbursed Rs 9.49 billion for death claims, maturity claims, partial maturity payments, surrender values, and other insurance-related claims during the year, underlining its capacity to meet obligations in a timely manner.

On the investment front, Chairperson Singh said all investable funds were deployed strictly within the sectors and instruments prescribed by the Nepal Insurance Authority. She emphasized that investments were made in transparent instruments designed to ensure long-term and stable returns, with the primary objective of protecting policyholders’ interests.

As of the review year, the company’s total investment portfolio grew by 11.04 percent to Rs 77.90 billion. To ensure stability in investment returns, the company has prioritized long-term deposits and other relatively low-risk instruments. The annual average rate of return on investments stood at 8.76 percent, reflecting consistent performance despite volatility in financial markets.

The AGM approved the company’s annual report, audited financial statements, and other statutory proposals. Shareholders also discussed the company’s future strategy, regulatory compliance, and risk management practices amid evolving economic and regulatory conditions.

With steady premium growth, rising investments, and strong claims settlement capacity, National Life Insurance said it remains focused on strengthening its financial position while maintaining long-term sustainability in Nepal’s life insurance market.