LIC Nepal Upgraded to ‘AA-’ Rating, Highlighting Strong Reliability and Financial Strength
Kathmandu — Life Insurance Corporation Nepal (LIC Nepal), one of the most experienced players in the country’s life insurance sector, has received a rating upgrade. ICRA Nepal has raised the company’s rating to ‘AA-’, up from its previous ‘A Plus’.
The new rating reflects a high degree of confidence in the company’s ability to meet its financial obligations on time, with very low credit risk.
The upgrade is largely driven by steady growth in new business premiums over the past two years. After a period of decline in earlier years, the company has regained momentum and improved its business expansion. It has also met the regulator’s minimum paid-up capital requirement following the latest assessment. With the issuance of around 88 percent in rights and bonus shares, the company’s capital has reached NPR 5.5 billion, comfortably above the required NPR 5 billion threshold.
This capital increase has further strengthened LIC Nepal’s operational capacity, financial health, and solvency position. As of mid-July 2025, its solvency ratio stood at approximately 161 percent. By asset size, the company is now the second largest life insurer in Nepal.
Its ownership structure also adds to its strength, with Life Insurance Corporation of India holding a 55 percent stake and Vishal Group owning 10 percent. Since its establishment in 2001, the company has built a strong foundation with an experienced board and a capable management team, supporting its long term stability.
The company’s investment portfolio remains sound, with about 66 percent of total investments placed in fixed deposits with commercial banks. Other positives include adequate reinsurance coverage, controlled operating expenses, and healthy profitability indicators. Endowment policies dominate its portfolio, accounting for more than 99 percent of total business. In addition, the renewal rate improved significantly to around 95 percent in fiscal year 2025, up from 89 percent the previous year.
As of mid-July 2025, LIC Nepal operates 85 branches across the country, including provincial and head offices. It is supported by around 13,800 agents, of whom about 6,100 are active, along with 96 corporate branches.
