Kathmandu: Himalayan Re-Insurance has reported a drastic decline in its financial performance for the current fiscal year 2025/26.
According to the third-quarter financial statements covering the period from mid-July to mid-April, the company has posted a staggering net loss of Rs 4.4352 billion. This marks a severe downturn compared to the same period in the previous fiscal year, when the reinsurer enjoyed a net profit of Rs 989.3 million.
The company’s core revenue stream saw a marginal dip, with net insurance premium earnings falling to 4.0396 billion NPR from last year’s Rs 4.1809 billion. While revenue stayed relatively stable, the company’s expenditure skyrocketed. Total expenses jumped by approximately Rs 1.19 billion, reaching Rs 4.9074 billion NPR in the current review period compared to Rs 3.7173 billion a year earlier.
A breakdown of the costs shows that while commission expenses for reinsurance business saw a slight reduction, dropping from Rs 883 million to Rs 854.4 million, the payout for insurance claims surged significantly. Claims payments rose from Rs 2.28 billion in the previous year’s third quarter to Rs 3.51 billion in the current fiscal year. This sharp spike in claim settlements, combined with rising operational costs, led to a contraction in total income, which shrank from Rs 5.2026 billion to Rs 4.7281 billion.
The reinsurer’s total insurance liabilities have also seen a substantial increase, climbing to Rs 8.9939 billion from the previous year’s figure of Rs 6.3667 billion. Consequently, the company’s key stock market indicators have taken a hit. The earnings per share (EPS), which stood at a healthy Rs 12.68 in the same period last year, have now plunged into negative territory at Rs -0.54.
Furthermore, the company reported a net worth per share of Rs 150.18, while its price-to-earnings (P/E) ratio has turned sharply negative, reflecting the current period’s deep financial deficit.
Comment Here