The Royal Insurance Corporation of Bhutan Limited (RICBL) recorded a sharp decline in profit in 2025 despite continued expansion in assets, lending activities and investment holdings, according to the company’s abridged audited financial statements adopted during its 51st Annual General Meeting (AGM) held recently.
The financial results show that RICBL’s profit after tax fell significantly to Nu 274.79 million in 2025, down from Nu 755.13 million recorded in 2024, representing a decline of more than 63 percent.
The steep drop in profitability came even as the corporation maintained strong growth in its balance sheet, expanded loans and advances, and increased overall liquidity positions.
According to the audited statement, RICBL’s total income stood at Nu 4.73 billion in 2025, slightly lower than the Nu 4.78 billion recorded in the previous year.
The decline in revenue was mainly driven by reduced earnings from premiums and commission-based income.
Core insurance-related revenues weakened during the year, with both premium earnings and commission income declining compared to 2024.
Net earned premium income contracted from Nu 2.78 billion in 2024 to Nu 2.57 billion in 2025, while net fees and commission income also declined from Nu 510.17 million to Nu 451.99 million.
However, the corporation registered notable growth in investment-related earnings.
Net interest income surged to Nu 1.14 billion in 2025 from Nu 1 billion in the previous year, reflecting expansion in lending and investment activities. Other operating income also rose to Nu 574.81 million from Nu 491.29 million.
Despite the relatively stable income performance, overall expenses rose sharply during the year, significantly affecting profitability. Total expenses increased from Nu 3.79 billion in 2024 to Nu 4.34 billion in 2025.
One of the key drivers behind the expansion was impairment-related losses, which surged to Nu 543.72 million compared to Nu 189.84 million in the previous year.
Other operating expenses also strengthened substantially from Nu 716.65 million to Nu 920.79 million during the reporting period.
Meanwhile, net benefits and claims remained relatively stable at Nu 2.87 billion.
As a result of the higher expense burden, profit before tax dropped sharply from Nu 990.07 million in 2024 to Nu 393.38 million in 2025.
Following an income tax expense of Nu 118.59 million, the corporation closed the year with a net profit of Nu 274.79 million.
Although profitability weakened significantly, there was expansion in its overall financial position and lending activities during the year.
Total assets climbed sharply from Nu 26.59 billion in 2024 to Nu 28.97 billion in 2025, reflecting growth of nearly Nu 2.38 billion.
RICBL’s loans and advances portfolio registered one of the strongest increases during the year, rising from Nu 15.84 billion to Nu 17.25 billion.
The increase suggested continued expansion in lending operations and financial intermediation activities.
Cash and cash equivalents also increased sharply, reaching Nu 1.24 billion in 2025 compared to Nu 454.27 million in the previous year, indicating stronger liquidity reserves.
Investment holdings under equity investments, bonds and related instruments rose to Nu 6.69 billion from Nu 6.37 billion.
Property, plant, equipment, investment property and intangible assets also increased moderately during the year.
On the liabilities side, insurance contract liabilities rose substantially to Nu 12.7 billion from Nu 11.21 billion, while investment contract liabilities increased to Nu 4.7 billion.
The corporation’s PPF contribution liabilities also increased from Nu 3.13 billion to Nu 3.47 billion.
Debt and other borrowings recorded one of the most notable increases, rising sharply from Nu 121.27 million in 2024 to Nu 668.72 million in 2025.
At the same time, RICBL’s capital fund declined from Nu 4.78 billion to Nu 4.41 billion, reflecting the impact of lower retained earnings and balance sheet adjustments.
Established in 1975, RICBL remains one of Bhutan’s largest financial institutions, playing a critical role in the country’s insurance, pension and financial services sectors.
Tashi Namgyal, Thimphu
