A Study on Financial Performance of Nepalese Non-Life Insurance Industry

Abstract

The study aims to analyze the financial performance of non-life insurance company in Nepal and examine the effect of operating efficiency on solvency margin position and operating profit margin of selected non-life insurance companies have been analyzed. The design and methods have been applied according to the research type which is descriptive and analyses. The findings of this research were based on the Secondary data. The data has been used to extracted from Annual Reports and Nepal Beema Sasthan office. The findings are completely based on the data and facts as provided. The findings of the research show that the overall calculated financial ratios are good enough for better financial performance of selected non-life insurance companies in Nepal. Furthermore, the study revealed that a mixed result in terms of the degree of effect of financial performance on the operating efficiency. There is both significant and insignificant effects of solvency margin and operating profit on operating efficiency of both sample insurance company. There are still major hurdles to overcome in order for Nepal to realize the growth potential of its insurance industry. Research could be conducted on the growth in the written premiums accounted by insures.