Microinsurance Companies in Nepal Invest Nearly Five Billion Rupees in Q4 of FY 2081/82
Kathmandu – Microinsurance companies operating in Nepal have made significant strides in financial investments, totaling approximately Rs 4.80 billion as of the fourth quarter of the last fiscal year 2081/82, according to data released by the Nepal Insurance Authority.
A total of seven microinsurance companies—three in the microlife sector and four in non-life microinsurance have aggressively expanded their investment portfolios within a short period of their establishment. The majority of their investments remain concentrated in fixed deposits.
Micro Life Insurance Companies
The three microlife insurance companies have focused on low-risk, high-return sectors. Around 25 percent of their investments have been placed in Nepal Government bonds, while the largest portion, Rs 1.968 billion, has been invested in fixed deposits of A, B, and C class banks and financial institutions licensed by Nepal Rastra Bank.
Additional investments include Rs 283.9 million in ordinary shares of listed public companies, Rs 26.7 million in preference shares, bonds, and debentures of licensed banks and financial institutions, and Rs 10 million in Citizens’ Investment Funds and mutual funds.
During the review period, Guardian Micro Life Insurance led the micro life sector with total investments of Rs 894.9 million, followed by Crest Micro Life Insurance at Rs 838.7 million and Liberty Micro Life Insurance at Rs 566.9 million.
Non-life Microinsurance Companies
The four micro non-life insurance companies have similarly invested 25 percent of their funds in Nepal Government bonds. Fixed deposits of licensed banks and financial institutions account for the majority of their investments, totaling Rs 2.17 billion.
Other investments include Rs 316.3 million in ordinary shares of listed public companies, Rs 7.3 million in preference shares, bonds, and debentures, and Rs 9 million in Citizens’ Investment Trust and mutual funds.
Nepal Micro Insurance, which also issued an IPO during the review period, reported the highest investment in the non-life sector, amounting to Rs 811.9 million. Star Micro Insurance invested Rs 587 million, Protective Micro Insurance Rs 566.2 million, and Trust Micro Insurance Rs 543.8 million.