Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU — The Nepal Insurance Authority has prohibited Himalayan Reinsurance Limited from undertaking any new reinsurance business until the end of the current fiscal year, citing provisions under the Insurance Act, 2022.
According to a public notice issued by the regulator, the authority has restricted the company from conducting new reinsurance transactions until the end of Asar 2082 BS (mid-July 2026).
The decision was taken in accordance with Section 136 (1) of the Insurance Act, 2079 (2022), the authority said.
Despite the restriction, Himalayan Reinsurance will still be permitted to continue reinsurance claim settlements and undertake retrocession-related activities linked to previously concluded reinsurance businesses, ensuring continuity in obligations already undertaken by the company.
The Nepal Insurance Authority stated that the decision was implemented following a board decision made on Baisakh 29, 2083 BS (May 12, 2026).
Issuing the notice under Section 136 (4) of the Insurance Act, the regulator said the information has been made public to notify all concerned stakeholders, including insurers, investors, and market participants.
The authority, however, has not publicly disclosed the specific reasons behind the restriction in the notice.
The development is expected to draw attention within Nepal’s insurance and financial sector, as Himalayan Reinsurance plays a key role in underwriting risks and providing reinsurance support to domestic insurance companies. Any regulatory restriction on new business could have implications for market competition, risk distribution, and reinsurance arrangements within Nepal’s insurance industry.
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