ICRA Nepal Reaffirms Liberty Micro Life’s Rating

Kathmandu — ICRA Nepal has reaffirmed the issuer rating of Liberty Micro Life Insurance Limited at ICRA NP-IR Double B Minus, reflecting continued confidence in the company’s ability to meet its financial obligations. The rating agency noted that Liberty has demonstrated strong growth momentum and operational stability within a short span since its establishment.

According to ICRA Nepal, Liberty’s rapid branch expansion, robust capital structure, and sound reinsurance management have contributed to its growing market presence. The company has established 14 branches nationwide, marking a notable achievement for a relatively new entrant in Nepal’s insurance industry.

Liberty Micro Life commenced operations in November 2023 and has since achieved significant outreach, particularly through its participation in the Foreign Employment Insurance Program. The company’s active involvement in the Foreign Employment Insurance Fund has had a positive impact on premium collection and market penetration.

As of now, term insurance constitutes around 72 percent of Liberty’s total premium income, with approximately 44 percent coming from the Foreign Employment Insurance Fund. The company has also diversified into the wholesale insurance sector, which accounts for about 27 percent of its overall business, supporting its objective of serving a wider customer base.

ICRA Nepal remarked that despite Liberty’s relatively small business size, its growth rate, managerial efficiency, and branch network expansion have been noteworthy. The insurer has shown resilience and adaptability in a competitive market environment. The regulatory limit of Rs 500,000 on micro insurance coverage has clearly defined Liberty’s focus on low-income and underserved segments, aligning with the broader goal of enhancing financial inclusion in Nepal.

By mid-July 2025, Liberty’s paid-up capital reached Rs 525 million, supported by a diverse mix of institutional and individual investors. Major shareholders include Langtang Investment Pvt. Ltd. and Paldor Investment Pvt. Ltd. (each holding 21.43 percent), Kavita Lohiya and OP Holding Company Pvt. Ltd. (each 9.52 percent), Jagadamba Enterprises Pvt. Ltd. (6.86 percent), Remi Capfin Pvt. Ltd. (6.19 percent), and Godavari Fincorp Pvt. Ltd. (4.76 percent).

The company recorded a net profit of Rs 1.15 million in the fiscal year 2025, with total assets reaching approximately Rs 772 million. Liberty has also announced plans to issue ordinary shares (IPO) to the public in the near future as part of its long-term growth strategy.