Small non-life insurance company’s investment reached about 1.5 billion

Kathmandu : By the second quarter of the current financial year, the small non-life insurance companies have invested about 1.5 billion. According to the data of the Insurance Authority, 3 small non-life insurance companies have invested 1 billion 417 million rupees during this period.Small insurance companies are still in their initial stages, so they are not in business. Companies have to do something to maintain their dominance in the market. Now they are focusing on business and service expansion.Small non-life insurance companies have invested Rs 9.4 million in term deposits of ‘A’ category banks. By the second quarter of the current financial year, micro insurance companies have invested 700 thousand rupees in term of deposits of banks and financial institutions and category of  ‘B’.

During this period, Nepal Micro insurance has invested a total of Rs.47.45 million, Protective Micro has invested Rs.473.5 million and Star Micro has invested Rs.469 million.

Nonlife Micro Insurance Company has a minimum of 25% in promissory notes or bond savings bonds of Nepal Government, State Government, Local Government or Central Bank of Nepal, preference shares (in ordinary shares) of “A”, “B” and “C” category of banks and financial institutions license provided by Central Bank. Non-convertible), they have get invest a maximum of 30% in bonds, debentures and loans.

They are allowed to invest a maximum of 20 percent in bonds, debts and debentures listed in public limited companies, a maximum of 5 percent in public investment funds and mutual funds and a maximum of 10 percent in ordinary shares in listed public companies. However, the recently establishment in small insurance companies are investing only in the banking and financial sector.