CARE Ratings Nepal Reaffirms Sun Nepal Life’s ‘Triple B Plus’ Rating
Kathmandu – CARE Ratings Nepal has reaffirmed Sun Nepal Life Insurance Company’s ‘CARE-NP Triple B Plus’ issuer rating, pointing to steady premium growth, a sound investment portfolio, reinsurance support and solvency well above the regulatory minimum. The rating signals the company’s ability to meet its financial obligations on time.
Gross premiums earned rose about 12% to NPR 5.09 billion in fiscal year 2025/26, from NPR 4.53 billion a year earlier, driven mainly by higher renewal collections. Net premiums earned grew about 13% to NPR 4.895 billion. The company retained roughly 96% of premiums, up from 95%. The report noted that the life insurance industry’s gross premiums grew about 15% in FY 2024/25.
Net underwriting results improved to NPR 2.35 billion from NPR 1.76 billion. Profit before tax, however, fell to NPR 366 million from NPR 582 million. CARE attributed the drop mainly to a larger transfer to the policyholders’ fund, NPR 2.89 billion against NPR 2.25 billion the year before. The life insurance fund grew to NPR 12.93 billion from NPR 10.10 billion. The bigger transfer strengthens the company’s ability to meet policyholder obligations, though it moderately reduces the returns available to shareholders.
Solvency remains a key strength. At the end of FY 2024/25, available capital resources were NPR 6.38 billion against a risk-based capital requirement of NPR 2.61 billion, a solvency ratio of 2.44 times. The supervisory target under Nepal’s Risk-Based Capital and Solvency Directive, 2081, is 1.30 times. CARE credited the strong position to the company’s asset base, investment returns and reinvestment of those returns.
Total investments, including subsidiaries and interest-bearing current accounts, rose about 16% to roughly NPR 18.92 billion. About 58% was held in fixed and other interest-bearing deposits with banks and financial institutions, which supports liquidity. The ratio of liquid assets to technical reserves was 1.35 times, which CARE rated as a moderate liquidity position.
The company cedes portions of its life and supplementary benefit risks to Nepal Reinsurance Company and Himalayan Reinsurance Company, with Nepal Re as lead reinsurer. Micro-term, joint-term, loan protection and foreign-employment term products are covered under separate arrangements, and catastrophe cover is in place for large or concentrated claims. The company remains liable for risks it retains.
As of mid-July 2026, Sun Nepal Life operated 48 branches plus its head office and 102 sub-branches, covering all seven provinces and 70 of Nepal’s 77 districts. CARE also cited its experienced leadership. Chairman Anuj Keyal has held several roles within the Keyal Group, and CEO Raj Kumar Aryal has more than 17 years of professional experience, including in insurance.