SRLI

By Sandeep Chaudhary

Sanima Reliance Life Q4 Results: Revenue Growth, Strong Premium Collections but Lower Policy Retention

Published on August 22, 2025

Sanima Reliance Life Insurance Ltd. (SRLI) has published its audited financial results for the fourth quarter of FY 2024/25, showing healthy revenue growth, strong premium inflows, and consistent profitability, though challenges remain in policy retention and claims management.

The company reported a total revenue of Rs. 8.48 billion in Q4, an increase of 10.11% year-on-year compared to Rs. 7.52 billion in Q4 of FY 2023/24. Sequentially, revenue grew steadily from Rs. 5.95 billion in Q3 and Rs. 3.96 billion in Q2, reflecting robust business expansion.

The gross profit stood at Rs. 1.17 billion, with a gross margin of 13.77%, up from 12.59% in Q3 though below last year’s 16.97%. This indicates improved efficiency but rising operating and claim costs relative to revenues.

Net earnings were strong. Net income reached Rs. 377.49 million in Q4, compared to Rs. 350.82 million in Q4 last year and Rs. 337.66 million in Q3. The net profit margin stood at 4.45%, slightly down from 5.68% in Q3 but above 4.66% a year ago.

Return indicators remained stable. Return on Assets (ROA) stood at 1.59%, consistent with the sector average, while Return on Equity (ROE) came in at 6.81%, a slight improvement over 6.72% in Q4 of last year.

On a per-share basis, EPS (annualized) was Rs. 7.53, compared to Rs. 8.38 in Q4 last year. The reported PE ratio was 54.49, reflecting relatively high valuation compared to earnings.

From a balance sheet perspective, the book value per share stood at Rs. 111.59, while the market value per share traded at Rs. 410.19, nearly 3.7 times book value.

Insurance Business Indicators

Total enforced policies fell to 664,629, a sharp 32.36% YoY decline, showing weaker policy retention.
First-year premium income increased to Rs. 2.12 billion (+13.15% YoY), highlighting strong new business growth.
Single premium income surged to Rs. 422.10 million (+96.86% YoY), driven by lump-sum policy uptake.
Renewal premiums reached Rs. 4.88 billion (+13.25% YoY), supporting stable recurring revenue.
Claims paid declined by 15.47% YoY to 14,365 cases, a positive sign for profitability.
Outstanding claims rose to 5,607 cases (+4.08% YoY), suggesting a backlog that could pressure near-term expenses.
Long-term investments stood at Rs. 12.68 billion, up from Rs. 11.30 billion last year, while short-term investments rose to Rs. 8.39 billion, showing balanced asset allocation.

Dividend for FY 2024/25 has not been declared yet. Last year, SRLI distributed Rs. 9.25 per share.

Prabhu Insurance Q4: Stable Revenue, Declining Profitability, and Strong Valuation Premium

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Hathway Investment Nepal Q4: Revenue Jumps Sharply, Margins Stable, But Valuation Stretched

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NESDO Laghubitta Q4: Heavy NPL Pressure Drags Earnings into Red Despite Strong Revenue Base

NESDO Sambridha Laghubitta reported Q4 revenue of Rs. 530.40 million (-33.31% YoY) but slipped into a net loss of Rs. 10.09 million, compared to Rs. 67.86 million profit last year. High NPLs at 21.06% and a stretched CD ratio of 167.84% have severely impacted earnings. ROA and ROE turned negative at -0.24% and -1.23%, while EPS fell to -3.47. Despite financial stress, the stock trades at Rs. 1,716.78, showing market optimism, though no dividend was declared this year

City Hotel Limited Q4: Heavy Losses Persist Despite Strong Revenue Base

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Standard Chartered Nepal Q4 Results: Stable Profitability Despite Revenue Dip

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