Siddhartha Premier Insurance Retains ‘A’ Rating, Removed from Negative Watch

Kathmandu — Siddhartha Premier Insurance has retained its ‘A’ issuer rating, with ICRA Nepal reaffirming the company’s strong financial position, risk management capabilities, and ability to meet its policyholder obligations. The rating agency has also removed the insurer from its “Rating Watch with Negative Implications.”

According to ICRA Nepal, an ‘A’ issuer rating indicates that the company has an adequate capacity to meet its financial commitments on time, carries a low credit risk, and maintains an overall sound credit profile. The agency attributed the reaffirmation to Siddhartha Premier’s disciplined financial management, effective risk controls, and robust reinsurance arrangements.

The report notes that the insurer has demonstrated its ability to effectively manage claims arising from the September 2025 riots, prompting ICRA Nepal to remove the company from the negative watch list. The agency concluded that both the company’s liquidity position and capital base remain strong.

As of July 22, 2026, Siddhartha Premier Insurance had received claims worth approximately NPR 5.72 billion. Of that amount, the company’s net retention is estimated at around 11 percent, or roughly NPR 636 million. While this is among the highest net exposures compared with other insurers rated by ICRA Nepal, the agency expects much of the burden to be absorbed by underwriting profits of approximately NPR 544 million from the company’s regular insurance operations. In addition, annualized investment income based on the first nine months of FY 2025/26 is projected at around NPR 331 million.

ICRA Nepal stated that the insurer has a well-structured reinsurance program covering claims above its retention limits. Supported by a strong net worth, adequate liquid assets, and comprehensive reinsurance protection, the company is considered well-positioned to meet all of its financial obligations.

The rating also reflects Siddhartha Premier’s long operating history, experienced management, and established institutional framework. Under Nepal’s risk-based capital regime, the company’s regulatory solvency ratio stood at 3.85 times as of mid-July 2025, significantly above the regulatory minimum of 1.30 times. The ratio had improved from 3.18 times a year earlier, indicating a stronger capital position.

The agency also highlighted the company’s healthy liquidity. As of mid-April 2026, the ratio of liquid assets to net insurance contract liabilities stood at 3.1 times, suggesting that the insurer has ample resources to meet claim obligations and other liabilities.

ICRA Nepal expects the company’s capital adequacy to remain resilient over the long term, particularly if it continues to retain earnings and strengthen its reserves.

The report further identified Siddhartha Premier’s reinsurance program as a key strength. The company has arranged protection not only for routine insurance claims but also for catastrophe and large-loss events, enabling it to manage major claims while preserving capital adequacy and financial stability.

Best Meridian International Insurance Company serves as the lead reinsurer for proportional reinsurance, while Hannover Re provides non-proportional and catastrophe reinsurance coverage. ICRA Nepal noted that the strong financial standing and high credit quality of both international reinsurers enhance the reliability of the company’s overall risk management framework.

Siddhartha Premier Insurance Limited is a non-life insurer formed through the merger of Siddhartha Insurance Limited, which began operations in April 2006, and Premier Insurance Company (Nepal) Limited, established in 1994. The merged entity commenced operations in March 2023. The company is headquartered in Baber Mahal, Kathmandu.

As of mid-April 2026, its largest shareholders included Ramlal Shrestha (approximately 6.2 percent), Siddhartha Bank (approximately 5.7 percent), and Bal Krishna Shrestha (approximately 3.5 percent), with the remaining shares held by other investors. The ownership structure consists of 51 percent promoter shares and 49 percent public shares.

By mid-April 2026, the company operated a nationwide network of 128 branch offices. During the first nine months of FY 2025/26, it reported a net profit of NPR 40 million after tax, while total assets reached NPR 12.89 billion. In FY 2024/25, the insurer posted a net profit of NPR 756 million, with total assets standing at NPR 11.78 billion as of mid-July 2025.