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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Life Insurance Nepal's annualizedNet Income for the quarter that ended in Apr. 2026 was NPR384 Mil.
Life Insurance Nepal's average Total Assets over the quarter that ended in Apr. 2026 was NPR154,080 Mil. Therefore, Life Insurance Nepal's annualized ROA % for the quarter that ended in Apr. 2026 was 0.25%.
The historical rank and industry rank for Life Insurance Nepal's ROA % or its related term are showing as below:
XNEP:LICN'
s ROA % Range Over the Past 10 Years
Min: 0.27 Med: 0.84 Max: 3.14
Current: 0.27
During the past 13 years, Life Insurance Nepal's highest ROA % was 3.14%. The lowest was 0.27%. And the median was 0.84%.
XNEP:LICN's ROA % is ranked worse than 86.96% of 506
companies
in the Insurance industry
Industry Median: 2.62
vs XNEP:LICN: 0.27
Life Insurance Nepal (XNEP:LICN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Life subindustry, Life Insurance Nepal's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Life Insurance Nepal ROA % vs Insurance Industry
For the Insurance industry and Financial Services sector, Life Insurance Nepal's ROA % distribution charts can be found below:
* The bar in red indicates where Life Insurance Nepal's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Life Insurance Nepal (XNEP:LICN) has a ROA % of 0.25% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Life Insurance Nepal and its competitors. This is 70% below median its historical median of 0.84. Over the past decade, Life Insurance Nepal's ROA % has ranged from 0.27 to 3.14. According to the industry distribution chart, Life Insurance Nepal ranks #440 out of 506 companies in the Insurance industry, placing it in the top 87%.
Is Life Insurance Nepal's ROA % too high?
Life Insurance Nepal's current ROA % of 0.25% is 70% below median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 3.14. The Insurance industry median ROA % is 2.62. Life Insurance Nepal's value of 0.25% is 90.5% below this industry median. Based on the distribution chart, Life Insurance Nepal ranks #440 out of 506 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Life Insurance Nepal has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Life Insurance Nepal's ROA % compare to AFL and MET?
According to the Insurance industry distribution chart, Life Insurance Nepal ranks #440 out of 506 companies for ROA %. This places Life Insurance Nepal in the lower half of its industry. The industry median ROA % is 2.62. Life Insurance Nepal's value of 0.25% is 90.5% below this benchmark. Historically, Life Insurance Nepal's own ROA % has ranged from 0.27 to 3.14 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 2.62, Life Insurance Nepal has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Insurance company?
The median ROA % among Insurance companies is 2.62, based on 506 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Life Insurance Nepal's current ROA % of 0.25% is 90.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Life Insurance Nepal and its competitors. For the Insurance industry, the median ROA % is 2.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Insurance Nepal's current ROA % is 0.25%, which is 70% below median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Insurance Nepal stock overvalued right now?
Based on GuruFocus' analysis, Life Insurance Nepal (XNEP:LICN) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR891.53, compared to a current price of NPR787.90 — trading 11.6% below its estimated fair value. The current ROA % is 0.25%, which is 70% below median its 10-year median of 0.84 and 90.5% below the Insurance industry median of 2.62. Life Insurance Nepal's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Life Insurance Nepal (XNEP:LICN), the current ROA % is 0.25% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Life Insurance Nepal (XNEP:LICN) Overvalued in 2026?
Based on GuruFocus' analysis, Life Insurance Nepal stock appears to be undervalued.
The current stock price of NPR787.90 is trading 11.6% below its estimated GF Value™ of NPR891.53.
GuruFocus considers Life Insurance Nepal to be Modestly Undervalued.
Key valuation signals for XNEP:LICN:
ROA %: 0.25% (70% below median its 10-year median of 0.84)
GF Value™: NPR891.53 vs. price of NPR787.90 (11.6% below fair value)
Industry Position: 90.5% below the Insurance median (#440 of 506)
No single metric tells the full story. See the XNEP:LICN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Insurance Corp Nepal Ltd is engaged in the life insurance business in Nepal, providing participating and non-participating life insurance products through its provincial offices, branches, sub-branches, and network of agents. Its product portfolio includes endowment plans, child plans, and money-back plans, and it provides services such as reviving lapsed policies, policy loans, nominations, and bonuses to policyholders. Revenue is mainly generated from premiums and investments, including regular and single-premium collections, returns from investments in equities, bonds, and other financial instruments, service-related fees, and commission on reinsurance ceded.
82GF Score
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