Insurance Authority Chief Removed Over Alleged Nepa Reinsurance Share Dispute
9th July 2026, Kathmandu
It has been brought to light that a strategic dispute regarding the approval of share acquisitions for Nepal Reinsurance Company played a central role in the removal of Surya Prasad Silwal.
Insurance Authority Chief Removed
Silwal previously served as the Chairman of the Nepal Insurance Authority.
The allegations suggest that while Silwal faced public scrutiny regarding his age and citizenship during his early tenure, he maintained his regulatory position for nearly four years. The report contends that significant internal pressure intensified only after he allegedly declined to approve a contentious share acquisition proposal.
Allegations of Corporate-Backed Share Purchases
The investigation alleges that Himalayan Life Insurance sought to acquire additional shares of Nepal Reinsurance Company. This corporate move was reportedly backed by influential business interests associated with the Shankar Group and prominent businessman Dipak Bhatt.
Official records show that on Ashoj 10, 2081, the Insurance Authority authorized Himalayan Life to invest Rs. 2 billion in ordinary shares of companies operating outside the core insurance sector. However, the regulatory body did not specifically authorize this capital allocation for the purchase of Nepal Re shares.
Timeline of Regulatory Stagnation and Legal Action
The report claims that the board of Himalayan Life Insurance decided on Mangsir 14, 2081, to purchase 1 million ordinary shares of Nepal Re from the secondary market. Despite this corporate decision, the insurer failed to obtain the necessary regulatory clearance while Silwal remained in office.
Silwal was eventually relieved of his regulatory responsibilities after the Commission for the Investigation of Abuse of Authority filed a corruption case against him on Mangsir 24, 2081. This legal development opened a leadership vacuum within the insurance oversight body.
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Shifts in Approval Dynamics Under New Leadership
Following Silwal’s departure, Madan Dahal was appointed as the new Chairman of the Insurance Authority on Mangsir 28, 2081. The report states that Himalayan Life Insurance renewed its request for approval to purchase Nepal Re shares on Poush 14, 2081.
According to the publication, the Insurance Authority granted approval for the acquisition of 1 million shares just ten days after Dahal took office. Shortly thereafter, on Falgun 1, 2081, the authority approved an additional purchase of 2 million Nepal Re shares, acting upon a technical recommendation provided by Executive Director Sushil Dev Subedi.
Concentration of Investment Portfolios
Data analysis during the fiscal year 2081/82 shows that Himalayan Life Insurance invested approximately Rs. 4.32 billion in ordinary shares of Nepal Re. This investment was executed alongside the insurer’s existing holdings in the company’s promoter shares.
The Department of Money Laundering Investigation noted that 60.77 percent of the total share investment made by Himalayan Life during FY 2081/82 was concentrated solely within Nepal Re. Furthermore, nearly 40 percent of the insurer’s total market investment was allocated exclusively to purchasing ordinary shares of this single entity.
Defense Regarding Regulatory Consistency
In a formal statement provided to the Department of Money Laundering Investigation on Baishakh 9, 2083, former Chairman Madan Dahal defended his administrative record. He argued that his approvals remained within the Rs. 2 billion investment limit initially established during Silwal’s administration.
Dahal maintained that his decisions were based on standard recommendations developed through the authority’s internal review processes. He explicitly stated that his administrative actions did not contradict or deviate from the overarching investment policy framework previously approved under the former chairman.
For More: Insurance Authority Chief Removed
