ICRA Nepal Maintains United Ajod Insurance Rating, Removes Negative Watch

Kathmandu — ICRA Nepal has removed the negative watch placed earlier on United Ajod Insurance Limited and has maintained the company’s issuer rating at the existing ‘Triple Plus’ level.

According to the rating update, the assessment reflects a medium level of assurance regarding the company’s ability to meet its financial obligations on time. ICRA Nepal clarified that the rating represents an overall view of the company’s credit position and is not linked to any specific debt instrument. The plus and minus signs indicate the company’s relative standing within the rating category.

The negative watch was withdrawn following improvements in the company’s financial position, clearer risk management practices, and its capacity to handle recent claim pressures. The insurer has been able to manage claims arising from the protest incidents of Bhadra 23–24, 2082, and flood and landslide events from Ashoj 17–20, 2082.

ICRA Nepal’s report notes that effective reinsurance arrangements, sufficient cash flow, and stable financial statements are expected to support the company in settling these claims. Although the company may face some pressure on profitability in the fiscal year 2082/83, the agency has stated that its liquidity and stability are not expected to be significantly affected.

United Ajod Insurance was formed through the merger of United Insurance Company Limited (established around 2050 BS) and Ajod Insurance Limited (established in 2075 BS). The company’s head office is located in Sundhara, Kathmandu, and it currently operates 101 branches nationwide.

Major shareholders include Chaudhary Group Pvt. Ltd. (about 7.7%), IJ Group Pvt. Ltd. (about 6.9%), Ravi Bhakta Shrestha (about 4.7%), C.G. Foods Nepal Ltd. (about 3.3%), and Bhatbhateni Supermarket and Departmental Store Pvt. Ltd. (about 2.5%). The promoter-to-public shareholding ratio stands at 51% and 49%, respectively.