IME Life Upgraded to ‘A-’ Rating on Strong Claims Settlement and Risk Management

Kathmandu – IME Life Insurance Company Limited has received an upgraded credit rating. CARE Ratings Nepal Limited has raised the company’s issuer rating from ‘BBB+’ to ‘A-’, indicating that the insurer is considered adequately safe in meeting its financial obligations on time and carries a relatively low credit risk.

According to CARE Ratings Nepal, the upgrade was primarily driven by the company’s expanding business scale, significant growth in gross written premiums, and performance that exceeded its historical average growth rate. The rating agency also noted substantial improvements in the company’s financial performance during FY 2024/25 and the first nine months of the current fiscal year.

The assessment highlighted the company’s strengthening profitability, controlled policy lapse rates, efficient management of agent commission and operating expenses, and steadily rising investment income. These factors have contributed significantly to the rating improvement. CARE also noted that the company maintains adequate solvency capacity and a comfortable capital buffer above regulatory minimum requirements.

The company’s experienced board and management team, satisfactory asset quality of its investment portfolio, adequate reinsurance arrangements, nationwide branch network, and expanding agency force were also cited as key strengths. Rapid premium growth, improved claims management, expense control, strong underwriting performance, and stable profitability have further reinforced the company’s financial position.

CARE Ratings Nepal stated that future assessments will consider the company’s ability to sustain its current growth momentum, diversify its insurance products, maintain the quality of its investment portfolio, and preserve a strong solvency buffer above regulatory requirements.

To strengthen risk management, the company maintains adequate reserves and reinsurance protection. IME Life has reinsurance agreements with both Nepal Reinsurance Company and Himalayan Reinsurance. In line with regulatory requirements, the insurer cedes 4% of its insurance risk directly to each of these reinsurers.

For additional risk protection, the company transfers 85% of risks exceeding its retention limit to Nepal Reinsurance Company and the remaining 15% to Himalayan Reinsurance. Under its retention policy, IME Life retains up to NPR 400,000 of risk per insured person for basic life insurance, group and individual term life insurance, and accident rider benefits. Risks above this threshold are ceded to reinsurers.

The company has also entered into catastrophe reinsurance arrangements with Himalayan Reinsurance to protect against major natural disasters and extraordinary events. Under this arrangement, claims exceeding NPR 400,000 are covered through reinsurance protection.

IME Life was incorporated under the Companies Act, 2006 on October 1, 2008 and received its life insurance operating license from the then Insurance Board on July 4, 2017. Since then, it has steadily expanded its life insurance operations across Nepal, offering a range of individual and group life insurance products.

Among the company’s major shareholders, Chandra Prasad Dhakal and Hem Raj Dhakal each hold approximately 11%, while Global IME Bank owns around 10%. The company is chaired by Dr. Ramhari Aryal, while Pawan Kumar Khadka serves as Chief Executive Officer.

As of mid-May 2026, the company operated 23 branch offices and 135 sub-branch offices across all seven provinces of Nepal. It also maintained a nationwide network of 47,823 insurance agents, playing a significant role in expanding insurance access, attracting new customers, and promoting insurance awareness.

The company’s extensive branch and sub-branch network is considered a key competitive advantage, supporting market expansion, customer service delivery, brand recognition, and business growth. As of May 15, 2026, IME Life’s total assets stood at NPR 24.68 billion.