ICRA Nepal Reaffirms ‘Double B’ Rating for Protective Micro Insurance Limited
Dhangadhi – ICRA Nepal has reaffirmed the issuer rating of Protective Micro Insurance Limited (ICRA NP-IR) at ‘Double B’, indicating a medium risk in the company’s ability to meet its financial obligations on time.
According to ICRA Nepal’s report, the company has demonstrated satisfactory short-term progress and is expected to maintain a more balanced financial position in the coming years, supported by a strong ownership structure and adequate capital base.
Protective Micro Insurance is preparing to issue ordinary shares (IPO) worth Rs 220 million in the near future to further strengthen its capital. ICRA noted that the company’s solvency position remains satisfactory despite its relatively small scale of operations.
The insurer’s business performance has seen a notable surge in FY 2081/82, with its total gross premium income increasing by about 2.8 times compared to the previous fiscal year. This growth is attributed to the company’s rapid branch expansion, from 24 branches last year to 33 network points currently across the country.
The company has prioritized increasing insurance access in rural and remote regions, focusing on small entrepreneurs, farmers, and the working class. Its customer-oriented initiatives—such as simplified claim procedures and improved service delivery—have contributed to rising insurance awareness nationwide.
Currently, vehicle insurance represents the major portion of Protective’s insurance portfolio. However, the company has shown an ability to effectively manage risks due to its sound capital position. ICRA further stated that the discount on minimum premium rates for small insurance products, provided by the regulatory body, is likely to enhance the company’s competitive advantage in the market.
The company’s paid-up capital stands at Rs 525 million, with Himalayan Reinsurance Limited holding the largest share at 21.43 percent.