Nepal Life Insurance has received a Double A Minus credit rating from ICRA Nepal, becoming the first life insurance company in Nepal to achieve this high-grade rating, signifying exceptional financial strength and reliability.
Nepal Life Insurance Company Ltd, one of Nepal’s most trusted life insurance companies, has received a Double A Minus (ICRA NP–IR Double A Minus) credit rating from ICRA Nepal Ltd, marking a historic achievement as the first life insurance company in Nepal to obtain this rating. Institutions in this category are considered to have very high safety levels and strong capability to meet financial obligations on time.
Nepal Life Insurance earned this prestigious rating based on its financial stability, strong market position, and proven ability to meet financial commitments promptly. Established in 2001, the company operates through over 190 branches across the country and, as of the end of Ashar 2081/82, holds a 27% market share in terms of total premium collection.
The company maintains a solvency ratio of 150.40%, well above the minimum requirement set by the Nepal Insurance Authority. Around 94% of the company’s investments are placed in fixed-interest-bearing instruments, generating an average return of 10.02% as of Ashar end. In fiscal year 2080/81, Nepal Life reported a net profit of NPR 2.12 arba and achieved an 18% return on shareholders’ equity.
To ensure effective risk management, Nepal Life has reinsurance arrangements with Nepal Reinsurance Company Ltd, Himalayan Reinsurance Ltd, and Hannover Re (Germany). These partnerships strengthen the company’s protection against unforeseen losses. The insurer credits its success to the leadership of its experienced board of directors and skilled management team, which have helped maintain transparency, customer trust, and long-term financial stability.
This high rating further validates Nepal Life’s credibility, leadership strength, and market dominance, reinforcing its position as the country’s leading life insurer. Approximately 98.80% of the company’s business is concentrated in endowment life insurance, contributing to its long-term stability and strong market presence.
As of Ashar 2081/82, Nepal Life has secured a catastrophe reserve fund of NPR 1.32 arba, which is adequate given its business scale. The company manages a life insurance fund exceeding NPR 233 arba and investments surpassing NPR 240 arba, while having settled over NPR 67 arba in claims to date.
On this occasion, Mr. Praveen Raman Parajuli, Chief Executive Officer of Nepal Life Insurance, expressed gratitude to all stakeholders who contributed directly and indirectly to achieving this milestone. He emphasized the company’s commitment to further strengthening its financial foundation, optimizing risk mitigation tools, and diversifying investments to ensure stable and high returns through the adoption of national and international best practices.
CEO Parajuli also extended thanks to the Board of Directors, policyholders, agents, employees, shareholders, regulators, and all other stakeholders for their continued trust and support in the company’s journey toward excellence.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
