KATHMANDU: Nepal Reinsurance Company Limited has reported a net loss of Rs 5.84 billion in its unaudited financial results for the third quarter of fiscal year 2025/26, a sharp reversal from the Rs 548.2 million net profit recorded during the same period a year earlier.

The state-owned reinsurer attributed the loss primarily to a steep rise in claim payments and a decline in premium income.

The company’s net earned premium fell 18.01 percent year-on-year to Rs 5.84 billion, reflecting weaker business performance during the review period.

Total income also declined by 22.05 percent to Rs 6.68 billion, down from Rs 8.57 billion in the corresponding period of the previous fiscal year, as both underwriting income and investment returns weakened. The deterioration pushed the company’s annualized earnings per share (EPS) to a negative Rs 43.41, compared with a positive Rs 5.45 a year earlier.

Meanwhile, net claims paid more than doubled to Rs 10.83 billion, up from Rs 5.17 billion in the same period last year. As a result, total expenses increased significantly to Rs 12.52 billion, compared with Rs 7.78 billion a year ago.

The company’s paid-up capital remained unchanged at Rs 13.42 billion, while total assets increased to Rs 39.54 billion from Rs 35.47 billion a year earlier.

As of the third quarter, Nepal Reinsurance’s catastrophe reserve fund stood at Rs 427.6 million, while its retained earnings remained negative at Rs 4.90 billion.

The company reported a net worth per share of Rs 109.20 and a book value of total assets per share of Rs 294.55. Its solvency ratio stood at 3.65, comfortably above the minimum regulatory requirement of 1.5 set by the Nepal Insurance Authority.

Nepal Reinsurance said declining interest rates in the banking sector and the broader economic slowdown had adversely affected investment returns. The company said it plans to strengthen investment diversification and risk management strategies to improve future performance.