Nepal Reinsurance

Nepal Re-Insurance Company Limited, the first of its kind in Nepal, traces its origins to an insurance pool created in 2003 to address property damage caused by the Maoist insurgency. During this tumultuous period, foreign reinsurance companies were reluctant to provide coverage, leading non-life insurance companies in Nepal to form a domestic insurance pool to cover losses from risks such as terrorism. With the end of the decade-long insurgency and the Maoist party’s transition into mainstream politics, the relevance of the pool diminished. To address the ongoing need for a national reinsurance entity, the government converted the insurance pool into a reinsurance company through a ministerial cabinet decision. Shortly known as Nepal Re, it boasts as the first reinsurance company in Nepal and the only government reinsurance company in the country.

Incorporated on November 7, 2014, under the Companies Act, 2006, Nepal Re was officially inaugurated on December 22, 2014, by honorable Finance Minister Dr. Ram Sharan Mahat. The company was established to enhance the financial stability of Nepal’s insurance industry and operates under a public-private partnership model with substantial government equity participation. Company is structured to run by representatives of government, insurance companies and public shareholders. Board of company shall comprise of seven directors, out of which three are appointed by the Nepal Government including chairman. Two directors are appointed by institutional investors, most of which are insurance companies. One independent director is chosen by the general meeting and one director is chosen by public shareholders. As on June 2024, it has authorized capital of 15 billion and paid up capital of around 13 billion.

Nepal Re is dedicated to providing comprehensive reinsurance solutions, ensuring robust financial resilience for the country’s insurance sector. Through its commitment to growth and security, Nepal Re plays a vital role in supporting Nepal’s economic infrastructure and offering essential reinsurance services.

Reinsurance Products

Nepal Re-Insurance Company provides reinsurance support to both life and non-life insurance companies. Non-life reinsurance support is extended to policies like property, engineering, motor, marine & cargo, aviation, agriculture, liabilities, health, micro, etc. It does extend its services to international insurance businesses as well, mainly through treaties. It receives mandatory direct cession from all domestic cedant companies (including life, non-life and micro) apart from the regular business. Some of the types of reinsurance products offered by Nepal Re includes:

• Quota Share Treaty
• Surplus Treaty
• AutoFAC Treaty
• Excess of Loss (XOL) Treaty
• Facultative

Besides, Nepal Re manages the pool of Motor Third Party (MotorTPL) insurance policies in the country, which is mandated by the government.

For more details, you can visit their website: nepalre.com.np

Retrocession Partners

Concept of insurance is to spread risk. Reinsurance companies further reinsure themselves through retrocession partners. As per the annual report of 2022/23, Nepal Re had 3 insurers and 20 reinsurers as its retrocession business partners, most of which are international reinsurers.

Credit Rating

Nepal Re has earned very good rating from domestic credit rating agency ICRA Nepal. It has achieved “AA-” rating, indicating high degree of safety regarding timely servicing of financial obligations. In fact, this rating is best among the reinsurance companies in Nepal. Here is the summary of ICRA Nepal credit rating received by Nepal Re as of June 2024:

Credit Rating Agency: ICRA Nepal
Rating: AA-
Date Assigned: October 25, 2021
Date of Re-affirmation: May 15, 2023

It is yet to receive its international credit rating as of June 2024. It is understood that company is undergoing the process of receiving the credit rating. However, due to government backing, despite not having a international credit rating, Nepal Re holds a reputation of being a formidable reinsurance company.

Share Price and Market Analysis

Nepal Re-Insurance Company Limited is listed in the NEPSE share market under the symbol NRIC. Among the participants of capital market (both primary and secondary), Nepal Re is popularly known with its symbol “NRIC” than its name itself. It is mainly due to the fact that, it was one of the early large companies to offer significant share to everyone who applied for the Initial Public Offering (IPO). Then IPO was just growing in popularity and primary shares were scarce.

For the share price or market analysis along with news of Nepal Re-Insurance Co. Ltd. (NRIC), you can check: Mero Lagani, Nepse Alpha, Share Sansar

Contact Details (Head Office)

Website: nepalre.com.np
Phone: +977-01-5970401, 01-5970402
Email: [email protected]; [email protected] (Nodal officer)
Address: LS Building, Thapathali, Kathmandu (Near Shikhar Biz Centre)

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