Banking News – Nepal Reinsurance Company Limited (Nepal Re) reported a net loss of Rs. 5.84 billion during the first nine months (up to mid-April/Chait) of FY 2025/26 (2082/83 BS), largely due to a sharp rise in insurance claims linked to the JG movement.

According to the company’s third-quarter financial statements, Nepal Re posted a net loss of Rs. 5.84 billion, compared to a net profit of Rs. 548.2 million during the same period of the previous fiscal year.

The company’s retained earnings turned negative at Rs. 4.91 billion by the end of the review period, reflecting significant pressure on its financial position.

Nepal Re said the large volume of insurance claims arising from damages caused during the JG movement in Bhadra placed substantial strain on its financial performance, resulting in a sharp deterioration across most key financial indicators.

During the review period, the company paid net insurance claims totaling Rs. 10.83 billion, while its total expenses reached Rs. 12.52 billion.

The company’s gross insurance premium income also declined to Rs. 6.80 billion, down from Rs. 7.84 billion recorded during the corresponding period of the previous fiscal year. Similarly, net earned premiums stood at Rs. 5.84 billion as of the end of Chait.

Nepal Re’s paid-up capital currently stands at Rs. 13.42 billion. The company reported Rs. 4.92 billion in its Special Reserve, Rs. 427.6 million in its Catastrophe Fund, and Rs. 792.3 million under Other Equity.

As a result of the heavy losses, the company’s annualized earnings per share (EPS) turned negative Rs. 43.51 by the end of the third quarter.