Nepal Reinsurance and Himalayan Reinsurance Compete in Investment Expansion

Kathmandu – There is intense competition in investment expansion between the two reinsurance companies operating in Nepal—government-owned Nepal Reinsurance Company and private sector–run Himalayan Reinsurance Company. Both companies are actively expanding their investments across various sectors, including fixed deposits in banks and financial institutions, ordinary shares of public companies, as well as projects related to solar energy, education, health, and investment companies.

During the first quarter of the current fiscal year, reinsurance companies operating in Nepal invested a total of Rs 37.75 billion across different sectors. According to details published by the Nepal Insurance Authority, these investments were made under the supervision of the regulatory body.

Financial data released by the Insurance Authority shows that Himalayan Reinsurance, operated by the private sector, recorded a higher investment volume during the review period. The company invested Rs 18.92 billion in various sectors. Meanwhile, Nepal Reinsurance, which is government-funded, also accelerated its investment activities, investing Rs 18.822 billion in eligible sectors during the same period.

During the review period, reinsurance companies allocated 30 percent of their investments to savings certificates or bonds issued by the Government of Nepal, provincial governments, local governments, or Nepal Rastra Bank. Additionally, Rs 25.8 billion was invested in term deposits of A, B, and C class banks and financial institutions licensed by Nepal Rastra Bank.

The companies further invested Rs 5.96 billion in ordinary shares of listed public companies and Rs 2.442 billion in preference shares, bonds, debentures, and bonds of A, B, and C class banks and financial institutions.

According to the published financial statements, reinsurance companies invested Rs 1.344 billion in Citizens Investment Fund and mutual funds, Rs 1.5 billion in investment company shares, Rs 821.5 million in other promoter shares, Rs 507.2 million in shares of other unlisted public companies, and Rs 654.7 million in other investments.

The Nepal Insurance Authority has issued investment guidelines encouraging insurance companies to broaden their investment scope, and reinsurance companies are increasingly aligning their strategies with these directives.