7 August 2024, Kathmandu

Investors in Himalayan Reinsurance, a privately promoted reinsurance company, are poised to see substantial returns on their investments.

Himalayan Reinsurance Shares Soar 

The company’s shares, currently priced close to Rs. 1,000, are set to deliver returns from premiums on sold shares and last fiscal year’s profits.

Financial data from the first nine months of the previous fiscal year shows a 43.37% profit increase compared to FY 2079/80. With a solid foundation for profit growth in FY 2080/81, Himalayan Reinsurance benefits from increased capital through its IPO, double-digit interest returns on fixed deposits, and improved underwriting surplus.

Initially led by experienced Indian reinsurer Chandra Sekharan Ramamurthy, the company is now headed by native insurer Upasana Poudel. Poudel, with her extensive experience in the Indian insurance market, is focusing on expanding the business domestically.

CEO Poudel has stated the company will avoid underwriting high-risk deals common among new reinsurers. The company’s international business has been positively impacted after receiving a direct reinsurance business license in India from the IRDAI last January.

Rating agency ICRA Nepal has highlighted the regulatory protections that will facilitate Himalayan Reinsurance’s domestic operations. The company’s strengths include increased paid-up capital, direct equity from domestic insurers, and market entry into India. Consequently, Nepal upgraded the company’s rating from A-minus to ICRA Nepal IRA A rating.

Additionally, global credit rating agency AM Best had previously rated the company BBB-minus.

By March of the last fiscal year 2080/81, Himalayan Reinsurance earned a net profit of Rs. 93.11 crore, a 43.37% increase from the previous year. Sources within the company project nearly a 100% profit increase for the last fiscal year. On Tuesday, its shares, with a book value of Rs. 148, traded at Rs. 849 per share in the secondary market.

Himalayan Reinsurance Shares Soar