Life Insurance Companies in Nepal Invest Over Rs 700 Billion in Various Sectors

Kathmandu – Life insurance companies operating in Nepal have collectively invested more than Rs 700 billion in various sectors during the second quarter of the current fiscal year, according to the Nepal Insurance Authority. The 14 life insurance companies in the country have made investments amounting to Rs 703.34 billion under the regulatory framework of the authority.

Among these, Nepal Life Insurance leads with the highest investment, totaling Rs 182.55 billion. The company has been diversifying its portfolio by increasing investments in sectors like education in recent times.

LIC Nepal has also been making significant investments, contributing Rs 107.6 billion during the review period. Similarly, Himalayan Life Insurance has invested Rs 72.43 billion, while National Life Insurance and the government-owned Rastriya Beema Company have invested Rs 66.23 billion and Rs 60.43 billion, respectively.

Other notable contributions include Asian Life Insurance with Rs 43.74 billion, SuryaJyoti Life Insurance with Rs 37.41 billion, Met Nepal Life with Rs 29.25 billion, and Citizen Life Insurance with Rs 21.69 billion. Sanima Reliance Life Insurance, IME Life Insurance, Prabhu Mahalaxmi Life Insurance, Sun Nepal Life Insurance, and Reliable Nepal Life Insurance have invested Rs 20.12 billion, Rs 16.76 billion, Rs 15.66 billion, Rs 11.38 billion, and Rs 8.54 billion, respectively.

The breakdown of investments reveals that Rs 499.91 billion has been placed in fixed deposits of commercial banks, Rs 47.65 billion in fixed deposits of development banks, and Rs 6.97 billion in fixed deposits of infrastructure banks. Furthermore, Rs 3.50 billion has been invested in savings certificates and bonds issued by the Government of Nepal.

In sectors like agriculture, cold storage, housing, tourism, hydropower, renewable energy, cable cars, roads, power transmission, education, and health, life insurance companies have invested Rs 8.985 billion. Additionally, Rs 25.77 billion has been allocated to ordinary shares of listed public companies, Rs 54.96 billion to preference shares and bonds of banks and financial institutions, and Rs 16.84 billion to bonds of listed public companies.

Life insurance companies have also diversified their portfolios by investing Rs 2.92 billion in Citizens’ Investment Funds and Mutual Funds, Rs 2.53 billion in shares of investment companies, and Rs 15.51 billion in promoter shares. Rs 60.67 billion has been placed in term deposits of finance companies.