Insurance Companies' Stock Market Investment Surpasses Rs 55 Billion, Up 35 Percent in a Year
According to data from the Nepal Insurance Authority, by the end of fiscal year 2082/83, insurance companies had invested a total of Rs 55.19 billion 33 lakh in listed shares, which is 35.18 percent more than the previous year. While Himalayan Life's investment remains the largest despite declining, companies like Nepal Life, Suryajyoti Life, and IME Life have aggressively increased their investments.
Insurance companies have significantly increased their investments in Nepal's stock market. According to data from the Nepal Insurance Authority, by the end of fiscal year 2082/83, insurance companies had invested a total of Rs 55 arba 19 crore 33 lakh in shares of listed companies.
In the previous fiscal year 2081/82, such investment stood at Rs 40 arba 82 crore 91 lakh. On this basis, insurance companies invested an additional Rs 14 arba 36 crore 42 lakh in the stock market within a single year. Overall, insurance companies' investment in listed shares increased by 35.18 percent. The Authority's data shows that over the past year, most life insurance companies aggressively increased their exposure to the stock market. However, some companies' investments have declined.
Himalayan Life Alone Exceeds Rs 10 Billion
The largest investment in the stock market is that of Himalayan Life Insurance. By the end of the last fiscal year, the company had invested Rs 10 arba 10 crore 41 lakh in listed shares. However, this is 6.96 percent less than the previous year. Last year, the company's such investment was Rs 10 arba 85 crore 97 lakh.
Nepal Life Insurance, in second place, saw its share investment increase by 62.67 percent to Rs 6 arba 50 crore 88 lakh. Last year, Nepal Life had invested Rs 4 arba 1 crore 22 lakh. Suryajyoti Life's investment has also grown rapidly. The company's investment increased by 77.19 percent to Rs 5 arba 18 crore 39 lakh.
After that, Himalayan Reinsurance's share investment stands at Rs 4 arba 37 crore 72 lakh, National Life's at Rs 3 arba 42 crore 25 lakh, and LIC Nepal's at Rs 3 arba 38 crore 28 lakh.
IME Life's Investment More Than Doubled
IME Life increased its investment in listed shares by 145.63 percent in one year. The investment, which was Rs 1 arba 22 crore 37 lakh last year, rose to Rs 3 arba 58 lakh. Similarly, Sanima Reliance Life's investment increased by 157.34 percent to Rs 2 arba 54 crore 83 lakh. National Life's investment increased by 155.61 percent to Rs 3 arba 42 crore 25 lakh.
Reliable Nepal Life's investment also increased by 102.01 percent to Rs 2 arba 97 crore 28 lakh, while Prabhu Mahalaxmi Life's investment increased by 114.09 percent to Rs 2 arba 46 crore 84 lakh.
In the microinsurance sector, Trust Micro Insurance showed the highest growth rate. The company's investment increased from Rs 18 lakh 61 thousand to Rs 4 crore 34 lakh 77 thousand, representing a growth of more than 2,236 percent. Nepal Reinsurance's investment in listed shares also increased by 629.77 percent to approximately Rs 69 crore 12 lakh.
Some Companies Reduced Share Investments
Not all insurance companies increased their stock market investments. Rastriya Jeevan Bima Company's investment decreased by 61.21 percent to just Rs 21 crore 19 lakh. Himalayan Life's investment fell by 6.96 percent, while Sun Nepal Life's decreased by 0.80 percent. Similarly, Prabhu Insurance's investment declined by 10.88 percent, Sagarmatha Lumbini Insurance's by 11.91 percent, IGI Prudential's by 11.77 percent, and Himalayan Reinsurance's by 15.65 percent.
Reinsurance Companies' Share Investment Exceeds Rs 5 Billion
According to Nepal Insurance Authority data, by the end of the last fiscal year 2082/83, the two reinsurance companies — Nepal Reinsurance and Himalayan Reinsurance — had invested a total of more than Rs 5 arba 6 crore 84 lakh in listed shares. Himalayan Reinsurance's share is the largest. The company invested Rs 4 arba 37 crore 72 lakh in listed shares. However, this investment, which was Rs 5 arba 18 crore 94 lakh in the previous fiscal year, declined by 15.65 percent last year.
In the case of Nepal Reinsurance, the opposite situation is seen. The company's investment in listed shares increased from Rs 9 crore 47 lakh last year to Rs 69 crore 12 lakh. On this basis, the company's stock market investment increased by 629.77 percent.
How Much Can Insurance Companies Invest in Shares?
The 'Directive on Investment of Insurers, 2082' issued by the Nepal Insurance Authority in Bhadra 2082 has set the limit on how much insurance companies can invest in the stock market. Through this directive, the Authority aims to make insurers' investments safe and diversified. According to the directive, insurance companies can invest in founder or ordinary shares of public companies or other listed institutions listed on a securities exchange market licensed by the Nepal Securities Board, up to a specified maximum limit of their total investment.