Nepal Life Insurance Issuer Rating Upgraded to Double A Reflecting Strong Solvency and Claim Payment Capacity

3rd November 2026, Kathmandu

ICRA Nepal has upgraded the issuer rating of Nepal Life Insurance Company Limited from ICRA NP-IR AA- to ICRA NP-IR AA.

Nepal Life Issuer Rating Upgraded

The rating upgrade reflects the company’s strong financial stability, improved solvency position, diversified investment portfolio, robust market presence, and long-term business capability.

Credit Rating Upgrade and Market Position

According to the report by ICRA Nepal, an AA rating indicates a high degree of safety regarding the timely servicing of financial obligations and very low credit risk.

Advertisement

• Issuer Rating: Upgraded to ICRA NP-IR AA from ICRA NP-IR AA-.
• Gross Premium Market Share: Reached approximately 27 percent in FY 2082/83, maintaining a market share of over 25 percent in the life insurance sector.
• Branch Network: Operates 196 branches across the country.
• Industry Position: Holds the position of the largest life insurance company in Nepal in terms of total assets and market share.

Solvency Ratio and Investment Portfolio Diversification

The company maintains a solvency ratio well above the regulatory minimum while expanding its investment avenues.

• Solvency Ratio: Increased from 145 percent in mid-July 2024 (FY 2080/81) to 154 percent by mid-July 2025, significantly exceeding the regulatory minimum requirement of 130 percent.
• Fixed Deposit Investment: Accounts for approximately 76 percent of total investments, with nearly 82 percent placed in investment-grade rated institutions and 13 percent in institutions rated AA- or above.
• Government Securities Investment: Stands at approximately 18 percent of total investments as of mid-July 2026.
• Debentures and PNCPS Investment: Investment in debentures and Perpetual Non-Cumulative Preference Shares (PNCPS) expanded to around 6 percent of total investments by mid-July 2026.

Premium Income and Financial Ratios

Consistent growth in renewal premium income continues to provide stability to the company’s overall business operations.

• Renewal Premium Income: Increased to NPR 40.60 billion in FY 2082/83, up from NPR 37.21 billion in FY 2081/82.
• Total Gross Premium Income: Expanded to NPR 54.03 billion from NPR 48.20 billion.
• Total Net Premium Income: Increased to NPR 53.45 billion from NPR 47.69 billion.
• Share of Endowment Policies: Endowment life insurance policies contributed approximately 98.8 percent of total premium income in FY 2082/83.
• Life Insurance Fund: Grew to NPR 276.13 billion in FY 2082/83 from NPR 234.75 billion in FY 2081/82.
• Total Investments: Reached NPR 280.56 billion compared to NPR 228.41 billion in the previous year.
• Management Expense Ratio: Decreased to 6.2 percent of total gross premium income in FY 2082/83, down from 6.3 percent in FY 2081/82.

Reinsurance Coverage and Risk Management

Nepal Life maintains structured reinsurance coverage to manage catastrophe risks and large-scale operational exposures.

• Reinsurance Partners: Nepal Reinsurance Company Limited and Himalayan Reinsurance Limited.
• Per-Life Risk Retention: Retains a maximum risk of up to NPR 2.00 million per individual life.
• Catastrophic Cover: Secured catastrophic risk coverage of NPR 550.00 million.
• Catastrophe Fund Reserve: Accumulated approximately NPR 1.54 billion (NPR 1,544.00 million) in the reserve fund as of mid-July 2026.

For More: Nepal Life Issuer Rating Upgraded