Rastriya Beema Company proposes ownership restructuring to expand public shareholding

KATHMANDU: Rastriya Beema Company Limited (RBCL), Nepal’s government-owned non-life insurance entity, has proposed a significant restructuring of its capital structure aimed at enhancing public ownership. The company has submitted a proposal to reduce the promoter group’s ownership by 10.46 percentage points, thereby increasing the general public’s stake.

Currently, the promoter group holds 80.46%, while the public holds 19.54% of the company’s shares. The new proposal seeks to adjust the ownership to 70% for promoters and 30% for the public, marking a strategic shift toward greater market participation and transparency.

New Ownership Structure Breakdown
Under the revised plan:

Government of Nepal: Stake to reduce from 47.50% to 41.03%

Employees Provident Fund (EPF): From 22% to 19.37%

Nepal Bank Limited: From 10.96% to 9.60%

This reallocation comes as part of the company’s broader effort to align with evolving insurance sector governance norms and ensure increased public engagement in state-run financial institutions.

Major Investments and Asset Profile

Rastriya Beema Company has made substantial investments in several listed financial institutions. According to the latest records, the company holds:

2.06 million shares in Nabil Bank

2.29 million shares in Nepal Investment Mega Bank

371,734 shares in Nepal Reinsurance Company

59,194 shares in Global IME Bank

29,953 shares in Nepal Bank Limited

Notably, Nepal Bank has invested in RBCL, and the company has reciprocally invested in the bank, indicating cross-holdings.

Furthermore, as of mid-July 2025, RBCL has invested NPR 6.77 billion in fixed deposits across various banks, reflecting a conservative yet stable investment approach.

Leadership and Operations
Chairman: Dinesh Upadhyay

CEO: Shivhari Shrestha

The company’s core revenue sources include net premium income from non-life insurance, reinsurance commissions, and returns from long- and short-term investments.

In FY 2081/82 (2024/25), the company generated NPR 1.37 billion in insurance premiums, showcasing steady operational performance. RBCL currently operates through 23 branch offices with 210 employees (114 permanent and others contractual or outsourced).

Distribution and Field Presence

Insurance Agents: 296 active agents nationwide

Surveyors: 191 surveyors engaged for facilitating insurance claims and settlements

These human resources play a vital role in expanding insurance penetration and ensuring timely claim resolution across the country.

Real Estate and Infrastructure Development

RBCL, in collaboration with Rastriya Jeevan Beema Company, jointly holds 15 ropani of land at Ramshahpath, Kathmandu. The company has announced plans to take full ownership and initiate the construction of its own building on the site.

Additional real estate holdings include:

6 kattha in Birgunj

6 kattha 10 dhur in Dhangadhi

4 kattha 10 dhur in Bhairahawa

Journey Toward Institutional Independence

Rastriya Beema Company officially entered its 12th year of operation this week. It began as the non-life insurance arm of the Rastriya Beema Sansthan, established in 2024 BS (1967 AD) to reduce foreign currency outflows and promote domestic capital formation.

After the implementation of the Rastriya Beema Sansthan Act in 2025 BS, the institution functioned as a fully government-owned entity. However, pursuant to the Insurance Act 2049 (1992 AD), which mandated the separation of life and non-life insurance businesses, RBCL was incorporated as a standalone entity on Jestha 28, 2071 BS (June 11, 2014), following registration with the Office of the Company Registrar.

It commenced commercial operations on Shrawan 18, 2071 BS (August 3, 2014) and has now completed 11 years.

Audit and Governance Progress

The company has prioritized completing long-pending audits. As of Asar 29, 2082 BS (July 13, 2025), it successfully conducted its third Annual General Meeting (AGM) after completing audits up to FY 2076/77. RBCL plans to finalize the FY 2077/78 audit and conduct the next AGM within the first quarter of the current fiscal year. The remaining backlogged audits will also be expedited.