Himalayan Everest Insurance Under Scrutiny for Financial Reporting Irregularities

Kathmandu – Himalayan Everest Insurance Company has come under the lens of the Nepal Insurance Authority (NIA) for allegedly submitting financial statements that violate regulatory provisions. The company’s quarterly and annual reports, including the Statement of Financial Position, Statement of Profit and Loss, and Statement of Other Comprehensive Income, reportedly contain discrepancies exceeding ten percent across multiple headings.

Despite repeated warnings from the NIA, the company has failed to address the inconsistencies. Sources indicate that day-to-day operations are being managed from the chairman’s residence, while CEO Anju Shrestha has struggled to exercise effective leadership, raising concerns about governance and regulatory compliance.

The Insurance Authority has repeatedly instructed Himalayan Everest Insurance to comply with Section 45 of the Insurance Institutions’ Corporate Governance Directive 2080, highlighting that the company’s current corporate governance practices appear to contravene statutory requirements. Furthermore, the regulator noted that the insurer has delayed the implementation of NFRS 17 Insurance Contracts, failed to submit timely action plans, postponed financial statement submissions, and deferred its annual general meeting.

The NIA has warned that failure to rectify these issues promptly may lead to stricter enforcement measures.