Shikhar Insurance Earns ‘Double A Minus’ Rating, Emerges as Nepal’s Strongest Non-Life Insurer

Kathmandu — Shikhar Insurance Company Ltd. has secured a ‘Double A Minus’ credit rating from ICRA Nepal, marking it as the strongest and most secure non-life insurance company in the country outside of government and foreign investment.

According to ICRA Nepal, only two government-owned institutions and three foreign-invested banks in Nepal have achieved a ‘Double A Minus’ or higher rating. Shikhar Insurance now becomes the only non-government, locally owned company to reach this benchmark.

The rating highlights several key strengths, including Shikhar’s robust catastrophe reinsurance arrangements. Along with support from global reinsurers such as Hannover Re and Swiss Re, the company has consistently demonstrated swift and reliable claim settlements during disasters like earthquakes, floods, landslides, and riots.

Shikhar Insurance also boasts the highest solvency ratio in the non-life insurance sector, standing at 3.67—well above the regulatory minimum under Nepal Insurance Authority’s risk-based capital guidelines. The company has increased its paid-up capital through bonus shares, further reinforcing its financial stability.

ICRA Nepal’s rating also reflects the company’s dominance in market share. For the past decade, Shikhar Insurance has consistently held the top position in Nepal’s non-life insurance market, even amidst rising competition and industry consolidations.

In terms of governance and risk management, the company benefits from a highly experienced management team and is the only non-life insurer in Nepal to be certified under ISO 27001 for Information Security Management.

A ‘Double A Minus’ rating indicates a strong capacity to meet financial obligations with very low credit risk. ICRA Nepal’s evaluation covered financial health, operational risks, asset quality, management strength, and internal-external business environments.