Prabhu Mahalaxmi Life Insurance’s Triple B Minus Rating Reaffirmed, Maintaining Stability and Financial Strength
Kathmandu — Prabhu Mahalaxmi Life Insurance Limited has had its issuer rating reaffirmed based on its overall financial strength and continued business expansion. Credit rating agency ICRA Nepal has reaffirmed the company’s issuer rating at “ICRA NP-IR Triple B Minus.”
Institutions with this level of rating are considered to have an adequate degree of safety regarding the timely servicing of financial obligations. The plus or minus sign attached to the rating symbol indicates the relative standing of the entity within the same rating category.
The reaffirmation was primarily driven by the company’s business growth. In 2025, the company recorded an annual growth of around 22 percent in net premium income. A strong increase of approximately 39 percent in first-year premium income, along with around 11 percent growth in renewal premiums, has been viewed as a positive indicator of business expansion. The company’s product structure, in which nearly 95 percent of total premium income comes from endowment insurance products, has also been assessed as providing a stable business foundation.
The company’s solvency position also remains strong. As of mid-July 2025, its solvency ratio stood at 191 percent, significantly above the regulatory minimum requirement of 130 percent. The satisfactory quality of its investment portfolio and adequate reinsurance arrangements were also highlighted as positive factors supporting the rating. Likewise, around 24 percent ownership by banks and financial institutions, a diversified distribution network, and an experienced management team were cited as factors strengthening the company’s institutional capacity.
Prabhu Mahalaxmi Life Insurance was formed in July 2023 following the merger between former Prabhu Life Insurance Limited and Mahalaxmi Life Insurance Limited. The merger was completed on a 1:1 share swap ratio. Prabhu Life had commenced operations in December 2017, while Mahalaxmi Life began operations in January 2019.