Non-Life Insurers’ Average Solvency Margin Rises to 4.35%
Kathmandu — The solvency margin ratio, a key measure of financial strength and risk-bearing capacity for companies operating in Nepal’s non-life insurance sector, improved in the fiscal year ended mid-July 2026 (Asar-end 2083 BS) compared with the previous fiscal year ended mid-July 2025 (Asar-end 2082 BS). The industry-wide average solvency margin rose from 4.16 percent to 4.35 percent during the period.
According to the latest financial data, Sanima GIC Insurance once again topped the list, maintaining a solvency margin of 5.85 percent, unchanged from a year earlier, reflecting continued financial stability.
Prabhu Insurance ranked second with a solvency margin of 5.48 percent. Neco Insurance and IGI Prudential Insurance both recorded 5.06 percent, well above the market average, having kept their ratios steady by prioritizing risk management and capital adequacy.
Shikhar Insurance and Himalayan Everest Insurance posted the most notable gains this year. Shikhar’s solvency margin rose by 1.07 percentage points, from 3.67 percent to 4.74 percent, while Himalayan Everest improved by 1.06 percentage points, from 3.32 percent to 4.38 percent. Sagarmatha Lumbini Insurance Company (SALICO) also strengthened its position, raising its ratio from 2.75 percent to 3.31 percent.
United Ajod Insurance and NLG Insurance held relatively stable ratios of 4.29 percent and 4.24 percent, respectively, while National Insurance maintained its ratio at 4.00 percent. Nepal Insurance was the only company among the group to see a decline, with its margin slipping slightly from 4.33 percent to 4.28 percent, though it remains comfortably above the regulatory minimum.
Among the remaining insurers, Siddhartha Premier Insurance recorded a solvency margin of 3.85 percent, while state-owned Rastriya Beema Company stood at 3.62 percent. Oriental Insurance ranked last on the list with 2.73 percent.
Overall, the broad stability across most insurers, combined with notable improvements at several major companies, suggests that Nepal’s non-life insurance market is becoming more financially resilient. The solvency margin ratio measures whether an insurer holds sufficient capital and assets to meet potential liabilities. The Nepal Insurance Authority requires all insurance companies to maintain a minimum solvency ratio of 1.50 percent.