Looking at current price, it has fallen about 60% from its peak. And current price is even about 35% below 2016-17 peak of bull market. I am not that familiar with the life insurances in general.

I understand that price is not everything but the downfall seems quite unnatural?

Edit: While reading [नेपाल लाइफ इन्सुरेन्सले १९ करोड नोक्सानी व्यहोर्नुको यस्तो छ कारण](https://www.nepalipaisa.com/NewsDetail.aspx/id/47887), I found something that I didn’t understand – “इन्सुरेन्सले अघिल्ला वर्षहरुको वैदेशिक रोजगार बिमाहरुको पुल व्यवस्था गरेकाले खुद नाफा प्रभावित भएको हो ।” What does it mean?

More at: r/NepalStock by roshamns

  1. Here are some of the reasons behind the huge price downfall of NLIC:

    1: The growth of NLIC in 77/78 slowed because of huge covid claims. The pandemic was at its peak in Nepal at that time.

    2: They gave bonus from reserve. I am not sure if all the bonus shares and/or cash bonus came from reserve but most/all of them did. So investors saw a huge decline in reserve.

    2: Share loss which caused decline in net profit for a few quarters in 77/78

    3: Least bonus shares than expected because of it’s history by investors. Most of us knew not to expect too much but not all go through the fundamental details or have knowledge of it.

    4: NLIC’s promoter shares were converted to public shares. This is one of the main reasons which caused a huge decline in the price. Promoters started dumping the shares of NLIC which caused its price to fall around 9xx Rs.

    5: They showed loss and huge decline in reserve. This is not actually a loss as there’s a reason behind showing that loss: [https://www.nepalipaisa.com/NewsDetail.aspx/id/47887](https://www.nepalipaisa.com/NewsDetail.aspx/id/47887) It will be fixed in the next quarterly report

    If you look at the 77/78 2nd quarterly report, they had increased the reserve by 66%. So life insurance sector ma highest/second-highest reserve NLIC kai huncha. Maybe that will be reflected in the next quarterly report again.

  2. They are in loss, apparently challenges in life insurance came up in Jan of this year people in the know where selling pretty hard

    Right now NLIC are in loss for this quarter most likely will finish the year in loss, so wouldn’t be surprised if it went even lower. Plus the threat of trade halting because of mergers are also a problem.

  3. If it has happened, it can’t be unnatural. Price Falls because there is no liquidity to support it. No one is bidding basically.

    Macro is shit overall, when inflation is sky high fewer people willing to pay the premium.

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