Himalayan Reinsurance Swings to Rs2.33 Billion Loss
Himalayan Reinsurance reported a net loss of Rs2.33 billion in FY2082/83, compared with a Rs1.39 billion profit a year earlier, as expenses and claims surged.
Himalayan Reinsurance Limited (HRL) has reported a net loss of Rs2.33 billion for FY2082/83, according to its provisional unaudited fourth-quarter financial results.
The reinsurance company had posted a net profit of Rs1.39 billion in FY2081/82. Its annualized earnings per share (EPS) fell to negative Rs21.50, compared with positive Rs12.79 in the previous fiscal year.
HRL’s retained earnings also turned negative at Rs3.28 billion, while its net worth per share stood at Rs115.58. The company’s paid-up capital remained unchanged at Rs1.09 billion.
Income Falls as Expenses and Claims Rise
Himalayan Reinsurance’s total income declined 9.37% year-on-year to Rs7.05 billion during the review period.
At the same time, total expenses increased sharply by 80.96% to Rs10.45 billion, putting significant pressure on the company’s profitability.
The company’s net earned premium fell 5.69% to Rs6.02 billion, while total claims paid increased 33.64% to Rs3.45 billion.
Investment income also declined by 27.30% during the fiscal year, further weighing on overall earnings.
Meanwhile, HRL’s catastrophe reserve decreased 27.08% to Rs144.4 million.
The financial results show a significant deterioration in Himalayan Reinsurance’s profitability during FY2082/83, with lower income and premium earnings accompanied by substantially higher expenses and claims.