Life Insurance Companies Invest Nearly Rs 800 Billion; Nepal Life Alone Accounts for Over Rs 200 Billion
Kathmandu — Life insurance companies in Nepal have collectively invested close to Rs 800 billion, with Nepal Life Insurance leading the sector by a wide margin. According to the financial statements released by the Nepal Insurance Authority, the 14 life insurance companies operating in the country have invested a total of Rs 789.82 billion by the end of the first quarter of the current fiscal year.
In recent years, life insurers have increasingly diversified their investment portfolios, gradually moving away from traditional fixed deposits. The Insurance Authority’s updated investment guidelines have encouraged companies to explore broader sectors, resulting in a more dynamic investment landscape.
During the review period, companies allocated 30 percent of their investments to fixed deposits in Class A banks licensed by Nepal Rastra Bank, while 25 percent went into government and NRB bonds. Similarly, 15 percent was invested in Class B banks and financial institutions, 7 percent in fixed deposits of Class C institutions, and 10 percent in real estate. They also invested 30 percent in preference shares, bonds, and debentures of banks and financial institutions across Class A, B, and C, along with 5 percent in the Citizens Investment Fund. Some insurers have further diversified into high-return sectors to strengthen profitability.
Nepal Life Insurance remains the largest investor in the industry, with a total investment of Rs 202.58 billion by end of Ashoj. LIC Nepal follows in second place, having invested Rs 119.57 billion across various sectors. Himalayan Life Insurance has also shown strong growth, with investments reaching Rs 82.18 billion during the period.
National Life Insurance recorded investments worth Rs 70.62 billion, while the government-owned Rastriye Jeevan Beema Company posted Rs 66.91 billion. Asian Life Insurance invested Rs 49.23 billion, followed by Suryajyoti Life Insurance at Rs 43.64 billion. Other significant investors include MetLife at Rs 32.93 billion, Sanima Reliance Life Insurance at Rs 23.79 billion, and Citizen Life Insurance at Rs 26.51 billion.
Similarly, Reliable Nepal Life Insurance invested Rs 20.69 billion, IME Life Insurance Rs 19.22 billion, Sun Nepal Life Insurance Rs 15.46 billion, and Prabhu Mahalaxmi Life Insurance Rs 18.10 billion.