Nepal Life Investment Firm Forms: Strategic Diversification of Rs. 250B Funds
9th May 2025, Kathmandu
Nepal Life Insurance Company has taken a major step forward by launching its fully-owned subsidiary, Nepal Life Investment Company. The new venture was officially inaugurated with a ceremony attended by Govind Lal Sanghavi, Chairman of Nepal Life Insurance, and Sushil Dev Suvedi, Executive Director of the Nepal Insurance Authority.
Nepal Life Investment Firm Forms
A New Chapter for Nepal Life
Nepal Life Insurance has invested NPR 5 billion to establish Nepal Life Investment Company, marking the beginning of its journey into investment diversification. The move is part of the company’s 25th anniversary celebrations in the insurance market. The new company aims to strengthen Nepal Life’s market position by expanding its investment portfolio, which is expected to yield higher returns for investors and policyholders.
Addressing the Launch Ceremony
At the launch event, Chairman Govind Lal Sanghavi expressed pride in Nepal Life’s success over the past 25 years. He highlighted the company’s growth, now holding nearly 30% of the market share. He attributed this success to the trust Nepal Life has built among its policyholders and stakeholders.
Sanghavi also discussed the importance of the new investment company in further enhancing the company’s profitability. He pointed out that investment diversification is a primary goal, one that will reduce the risks associated with market volatility and improve overall returns. He made it clear that Nepal Life Investment Company was created to address these goals.
Regulatory Support and Importance of Diversification
Sushil Dev Suvedi, Executive Director of the Nepal Insurance Authority, applauded the launch. He emphasized that the new venture is a significant step towards strengthening the long-term stability of Nepal’s insurance industry. Suvedi also stressed that proper management of the insurance fund, which is derived from people’s savings, is a serious responsibility for all insurance companies.
He acknowledged that diversification is crucial to reduce risk. “Putting all your money in one basket increases the risk,” Suvedi said. “Diversification ensures risk reduction, which Nepal Life has embraced.”
Suvedi also mentioned that managing an additional NPR 5 billion investment is no small feat. He urged the company to not only maintain this amount but to focus on increasing it using the best tools, strategies, and technologies available.
Focus on Growth and Future Goals
Kamlesh Kumar Agarwal, a member of Nepal Life’s Board of Directors, reflected on the company’s journey over the past quarter-century. He credited its success to the contributions of investors, policyholders, and employees. Agarwal mentioned that Nepal Life has created a life insurance fund of NPR 225 billion. Currently, the company serves over 1.7 million policyholders and more than 186,000 investors.
Looking ahead, Agarwal revealed that the company aims to grow its life insurance fund to NPR 500 billion within the next five years. To meet this ambitious target, Nepal Life Investment Company will play a key role. He also highlighted that life insurance is not just about providing protection but also offering long-term returns. Agarwal reaffirmed that the establishment of the new subsidiary was essential to meeting these goals.
Diversifying Investments for Better Returns
The newly established investment company will not only diversify Nepal Life’s portfolio but will also seek opportunities in various sectors. These include real estate, agriculture, tourism, hotels, cable cars, renewable energy, hydropower, and solar energy. This diversification will allow Nepal Life to strengthen its position in the market and offer more value to its investors.
By expanding its investment portfolio, Nepal Life aims to secure greater returns for its policyholders and stakeholders. This will help the company maintain its competitive edge and ensure financial stability.
Strengthening Institutional Growth
Pravin Raman Parajuli, CEO of Nepal Life Insurance, explained that the creation of Nepal Life Investment Company represents a significant structural change. Parajuli emphasized that this step will increase the core value of the company and align with the government’s policies regarding investment diversification.
He noted that the company is now expanding its investment range, adhering to the guidelines set by the Insurance Act. Parajuli also stressed that managing large investments requires specialized skills, which is why the subsidiary was created. He assured stakeholders that the company would maintain robust investment management practices moving forward.
Expanding Investment Strategies
Nepal Life Investment Company has already made significant progress. The company has acquired land for future development in Hetaunda and Itahari, with plans to expand into Biratnagar as well. Parajuli revealed that the company plans to purchase land in at least six locations within this fiscal year.
Suvas Thapa, CEO of Nepal Life Investment Company, underscored that the primary objective of the new company is to secure high returns while protecting Nepal Life’s investments. Thapa assured that the company will adopt a careful approach to investment management, utilizing both internal and external assessments to ensure the best possible outcomes.
Establishing a New Standard
Amit Kumar Kayal, Deputy CEO and Chairman of Nepal Life Investment Company, explained that the establishment of a dedicated investment company marks the beginning of a new era in the management of insurance funds in Nepal. He noted that, similar to developed countries, Nepal Life is now embracing a more structured and specialized approach to investment.
Kayal emphasized that the focus will be on customer interests. “We will continue to put our customers at the center of everything we do,” he said. “Our goal is to maintain the highest level of trust and credibility.”
Conclusion
The launch of Nepal Life Investment Company is a significant milestone in the company’s 25-year journey. With a clear focus on investment diversification, the company is poised to lead the way in Nepal’s insurance sector while offering long-term value to its policyholders and investors. By continuing to expand its portfolio and improve its investment strategies, Nepal Life aims to secure a strong and prosperous future.
For more: Nepal Life Investment Firm Forms
