Sun Nepal Life Reaffirms BBB+ Rating, Solidifying Claim Payment Capacity and Financial Strength

26th October 2026, Kathmandu

CARE Ratings Nepal Limited has reaffirmed the “CARE-NP BBB+” issuer rating previously assigned to Sun Nepal Life Insurance Company Limited.

Sun Nepal Reaffirms BBB+ Rating

This rating confirms that the company possesses a strong ability to fulfill its financial obligations on time, a robust claim settlement capacity, and an overall sound financial position.

Financial Performance and Premium Earnings Growth

The company demonstrated stable financial performance and notable growth across key metrics in the fiscal year 2082/83.

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• Total earned premium income increased by approximately 12 percent, reaching NPR 5.096 billion, compared to NPR 4.539 billion in the previous fiscal year.
• The growth in premium income was primarily driven by increased renewal premium collections.
• Net earned premium grew by approximately 13 percent to reach NPR 4.895 billion, up from NPR 4.326 billion in the previous fiscal year.
• The premium retention ratio improved to approximately 96 percent, compared to 95 percent in the preceding year.
• Net insurance underwriting results experienced substantial improvement, reaching NPR 2.355 billion compared to NPR 1.766 billion in the preceding fiscal year.
• Profit before tax decreased to NPR 366 million, down from NPR 582 million in the previous year, due to a higher transfer of funds to the policyholder fund.
• The life insurance fund increased significantly to NPR 12.931 billion at the end of the fiscal year, compared to NPR 10.109 billion in the previous period.
• The company transferred NPR 2.896 billion to the life insurance fund during the fiscal year to secure policyholder liabilities and future returns.

Solvency Margin and Capital Adequacy

The company maintains a robust solvency position well above regulatory minimum thresholds, according to the Risk-Based Capital and Solvency Directives.

• Available capital resources stood at NPR 6.386 billion against a risk-based capital requirement of NPR 2.619 billion.
• The solvency ratio was maintained at 2.44 times, which is significantly higher than the supervisory target level of 1.30 times (130 percent).
• The strong solvency position is supported by a solid asset base and sound investment returns.

Investment Portfolio and Liquidity Management

Total investments, including subsidiary holdings and interest-bearing current accounts, reached NPR 18.922 billion, representing a 16 percent increase compared to the previous year.

• Approximately 58 percent of total investments are held in fixed deposits and interest-bearing accounts across various banks and financial institutions.
• The ratio of liquid assets to technical reserves stood at 1.35 times, indicating a moderate level of liquidity.

Branch Network and Reinsurance Management

The company operates an extensive nationwide network comprising its central office, 48 branch offices, and 102 sub-branches spanning 70 out of 77 districts across all seven provinces as of mid-July 2026.

• The company maintains structured reinsurance arrangements with Nepal Re and Himalayan Re to transfer risks exceeding specified retention limits while maintaining catastrophe excess-of-loss protection.
• The board of directors is chaired by Anuj Keyal, while Chief Executive Officer Rajkumar Aryal leads the management team, bringing over 17 years of experience in the insurance sector.

For More: Sun Nepal Reaffirms BBB+ Rating