Prabhu Mahalaxmi Life Insurance Upgraded to ‘BBB-‘ Rating by ICRA Nepal

Kathmandu — The credit rating of Prabhu Mahalaxmi Life Insurance has improved following a robust financial performance in the fiscal year 2080/81. ICRA Nepal, a prominent credit rating agency, upgraded the company’s issuer rating from “[ICRANP-IR] BB+” to “[ICRANP-IR] BBB-”, indicating a moderate degree of safety regarding timely servicing of financial obligations.

The revised rating reflects Prabhu Mahalaxmi Life’s strong business growth after its recent merger, with a significant rise of around 22 percent in net premium income. The company also reported an after-tax profit of Rs 380 million in FY 2080/81, while its total assets reached Rs 16.57 billion during the same period.

ICRA Nepal’s rating methodology evaluates multiple parameters, including financial performance, risk management capability, market conditions, capital adequacy, and future business prospects. The improvement in rating takes into account the company’s wide branch network, adequate reserves for future policyholder bonuses, and experienced leadership.

Additionally, about 24 percent of the company’s ownership is held by banks and financial institutions as of mid-January 2025 another factor seen as strengthening the company’s market position.

However, ICRA Nepal has noted that the company’s ability to sustain or enhance the quality and returns of its investment portfolio, improve solvency ratios, and maintain profitability will remain key determinants for any future rating movements.