Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s non-life insurance companies invested more than Rs 66.23 billion in various sectors during the last fiscal year 2081/82, according to the latest data published by the Nepal Insurance Authority (NIA).
The cumulative investment from 14 operational non-life insurers stood at Rs 66.23 billion by the end of the fourth quarter of FY 2081/82, marking a 0.43 percent decline compared to the previous fiscal year’s investment of Rs 66.52 billion.
Heavy Reliance on Bank Deposits
The bulk of investments was directed into fixed deposits of banks and financial institutions, accounting for 77.48 percent of the total portfolio. Non-life insurers parked Rs 51.31 billion in such deposits, with the following distribution:
Class ‘A’ banks: Rs 44.94 billion
Class ‘B’ banks: Rs 5.23 billion
Class ‘C’ financial institutions: Rs 1.13 billion
Diversified Investment Portfolio
Beyond bank deposits, insurers also allocated funds across government securities, equities, and development projects:
Government bonds and savings bonds: Rs 603.6 million
Listed public companies’ shares: Rs 4.42 billion
Preference shares, bonds, debentures of BFIs: Rs 2.89 billion
Listed companies’ bonds and debentures: Rs 1.88 billion
Citizen Investment Trust & Mutual Funds: Rs 1.07 billion
Investment companies’ shares: Rs 294.3 million
Other promoter shares: Rs 2.60 billion
Unlisted public companies’ shares: Rs 14 million
Additionally, insurers invested Rs 1.25 billion in priority sectors such as agriculture, cold storage, tourism, hydropower, solar and renewable energy projects, cable cars, roads, power transmission lines, education, and healthcare. Another Rs 922.2 million was invested in miscellaneous areas.
Company-wise Breakdown: Siddhartha Premier Leads
Among the 14 insurers, Siddhartha Premier Insurance emerged as the largest investor, channeling Rs 7.99 billion across multiple sectors. It was followed by:
Rastriya Beema Company: Rs 7.77 billion
Sagarmatha Lumbini Insurance: Rs 7.27 billion
Neco Insurance: Rs 6.48 billion
Himalayan Everest Insurance: Rs 5.15 billion
Shikhar Insurance: Rs 4.89 billion
IGI Prudential Insurance: Rs 4.80 billion
Nepal Insurance Company: Rs 4.43 billion
NLG Insurance: Rs 3.88 billion
United Ajod Insurance: Rs 3.76 billion
Sanima GIC Insurance: Rs 3.46 billion
Oriental Insurance: Rs 3.24 billion
National Insurance: Rs 2.89 billion
Prabhu Insurance: Rs 1.17 billion
Market Trend
Analysts note that the sector’s marginal decline in investment volume indicates caution among insurers amid tighter liquidity in the banking sector and slower capital market growth. However, the continued concentration in fixed deposits and limited exposure to productive sectors has raised questions about the long-term contribution of non-life insurers to Nepal’s real economy.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
