Kathmandu. Sagarmatha Lumbini Insurance Company (SALIC) has seen a decline in its net profit. The company’s net profit declined by 47.13 percent in the third quarter of the current FY. The company has earned a net profit of Rs 13.32 crore till mid-April. The company had posted a net profit of Rs 25.19 crore in the same quarter last year.

During the review period, the company earned a net profit of Rs 2.97 billion. The company had earned Rs 2.94 billion in insurance premiums in the same period last year.

Similarly, the company earned Rs 1.47 billion in net insurance premium during the period. In the review period of the last FY, the company earned a net insurance premium of Rs 1.29 billion.

As of mid-April, the company has Rs 18.81 crore in retained earnings, Rs 22.67 crore in catastrophe fund and Rs 53.94 crore in other equities. The company with paid-up capital of Rs 2.62 billion has special reserve of Rs 2.55 billion, EPS of Rs 6.77, net worth per share of Rs 233.64 and price-to-earnings ratio of 89.63 times.

This is the same company that was taken action by the Nepal Insurance Authority only a few days ago. Clause 25 (2) of the Property Insurance Directive 2080 states that no discount, discount, deduction or concession can be given on the insurance premium of the insurance policy to be issued by the insurance company. However, the authority took action against Saliko after the company was found to have not complied with this provision.

According to the authority, Sagarmatha Insurance has been fined Rs 200,000 as per the sub-section (4) clause (a) of the Insurance Act, 2079.