Nepal Life Insurance receives double A Minus rating from ICRA Nepal

KATHMANDU: Nepal’s most trusted life insurance provider, Nepal Life Insurance Company Ltd., has been awarded a Double A Minus (AA-) credit rating by ICRA Nepal, reflecting its extremely high ability to meet financial obligations on time.

This makes Nepal Life the first life insurance company in Nepal to achieve this prestigious rating.

The rating recognizes the company’s financial stability, strong market position, and timely fulfillment of financial obligations.

Established in 2001, Nepal Life operates over 190 branches nationwide and maintained a market share exceeding 27% in total premium collection as of mid-July 2025 (Fiscal Year 2081/82).

The company’s solvency ratio stands at 150.40%, well above the minimum requirement set by the Insurance Board of Nepal. Around 94% of its investments are in stable, fixed-return instruments, generating an average return of 10.02% as of mid-July 2025. In FY 2080/81, Nepal Life earned a net profit of Rs 2.12 billion, providing an 18% return to shareholders.

To manage risk, Nepal Life has arranged reinsurance coverage with Nepal Reinsurance Company Ltd., Himalayan Reinsurance Ltd., and Hannover Re (Germany), ensuring protection against unforeseen losses.

Under the guidance of an experienced Board of Directors and a skilled management team, the company has maintained customer trust, transparency, and long-term financial stability. The high rating further reinforces Nepal Life’s credibility, stability, strong leadership, and market leadership.

Approximately 98.80% of the company’s business is based on regular life insurance, contributing to long-term sustainability and a robust market presence.

As of mid-July 2025, Nepal Life has secured a disaster fund of around Rs 132 million, which is adequate for its business scale.

The company currently manages a life insurance fund exceeding Rs 23.3 billion and investments of over Rs 24 billion, with claims paid exceeding Rs 6.7 billion as of the same date.

Commenting on the rating, CEO Praveen Raman Parajuli expressed gratitude to all stakeholders who contributed directly or indirectly to this achievement.

He emphasized Nepal Life’s commitment to strengthening financial stability, maximizing risk mitigation tools, and prioritizing diversified investments to ensure stable and high returns while adhering to national and international best practices.

CEO Parajuli also thanked the Chair and Board of Directors for their guidance, the policyholders for their trust, the agents who form the company’s backbone, employees, shareholders, regulatory bodies, and all other stakeholders for their continued support.