NEPSE trading

Top
·

By Dipesh Ghimire

Insurance Companies’ Investment in Nepal Stock Market Sees Significant Growth in FY 2082/83

Insurance Companies’ Investment in Nepal Stock Market Sees Significant Growth in FY 2082/83

Nepal’s life and non-life insurance companies have collectively made a remarkable investment in the stock market during the second quarter of the fiscal year 2082/83, with a total investment amounting to NPR 47.7 billion. This marks a significant increase from the previous year, when the total investment stood at NPR 30.2 billion. The growth of approximately NPR 17.5 billion in insurance sector investments reflects a strong institutional presence and increasing confidence in the country’s capital markets.

Life Insurance Companies Lead the Investment Surge

Life insurance companies have made the bulk of this investment, with a total of NPR 42.4 billion. Among these, Himalayan Life Insurance stands out with the largest share, having invested around NPR 12.5 billion. Following it closely, Nepal Life Insurance has invested NPR 6.6 billion, marking a 72% increase in its stock market exposure. Similarly, Sun Jyoti Life Insurance increased its investment by more than 100%, amounting to approximately NPR 4.6 billion.

However, not all life insurers followed this upward trend. National Life Insurance Company saw a significant decline in its investment, reducing its exposure from NPR 21.6 billion to about NPR 5.8 billion, a 73% decrease. This contrasting strategy across life insurance companies highlights a diverse approach to stock market investments—while some companies have aggressively expanded their investments, others have focused on risk management, reducing their exposure to the market.

Non-Life Insurance Companies’ Growing Investment

Non-life insurance companies have also increased their investments, although at a more moderate pace. Their collective investment in the second quarter reached NPR 5.36 billion, a 22% increase compared to NPR 4.39 billion in the previous year. National Insurance Company led the sector with an investment of around NPR 790 million. United Ajod Insurance followed with a notable 126% increase in investment, growing from NPR 16 million to NPR 37 million. Nepal Insurance and NLG Insurance also showed impressive growth, with increases of 124% and 116%, respectively.

However, some companies in the non-life sector, such as Prabhu Insurance and Sanima General Insurance, saw a decline in their stock market investments. This varying trend within the non-life insurance sector indicates a more cautious and balanced approach to investment compared to their life insurance counterparts.

Life Insurance Companies’ Dominance in Market Growth

Overall, life insurance companies have experienced a much higher investment growth rate compared to their non-life counterparts. Life insurers have collectively increased their investments by NPR 16.6 billion, further solidifying the role of institutional investors in the stock market. This surge not only enhances market liquidity but is also expected to contribute to the long-term stability of the capital market.

Experts See Long-Term Stability from Insurance Investments

According to experts, the expansion of investments by insurance companies is likely to bring long-term stability to the capital market. However, the disparity in investment approaches between life and non-life insurance companies points to the need for varied market strategies and a strong focus on risk management. The aggressive investment by life insurance companies may have a significant impact on the market, while the more balanced approach taken by non-life insurers could help maintain stability.

The combined investments of life and non-life insurance companies are strengthening the influence of institutional investors in Nepal’s capital markets, and it is anticipated that this will contribute to the long-term resilience and growth of the market.

A Growing Institutional Presence in Nepal’s Stock Market

The sharp increase in investment by Nepal's insurance companies underscores the growing role of institutional investors in the stock market. Life insurance companies, with their aggressive strategies, are expected to make a large impact on market liquidity and stability, while non-life insurers’ more measured approach will help maintain a balance. As institutional investment continues to grow, the Nepalese stock market is likely to see more stability and long-term growth, providing a stronger foundation for future economic development.

Related Blogs

Insurance Companies’ Investment in Nepal Stock Market Sees Significant Growth in FY 2082/83
Top

3 min read

Insurance Companies’ Investment in Nepal Stock Market Sees Significant Growth in FY 2082/83

Insurance Companies’ Investment in Nepal Stock Market Sees Significant Growth in FY 2082/83 Nepal’s life and non-life insurance companies have collectively made a remarkable investment in the stock market during the second quarter of the fiscal year 2082/83, with a total investment amounting to NPR 47.7 billion. This marks a significant increase from the previous year, when the total investment stood at NPR 30.2 billion. The growth of approximately NPR 17.5 billion in insurance sector investments reflects a strong institutional presence and increasing confidence in the country’s capital markets.

Dipesh Ghimire

·

13 Feb, 2026

Experts Argue Against the Necessity of Dual ISINs for Securities in Nepal
Top

3 min read

Experts Argue Against the Necessity of Dual ISINs for Securities in Nepal

Experts Argue Against the Necessity of Dual ISINs for Securities in Nepal Experts in the financial sector have expressed strong views against the need for dual International Securities Identification Numbers (ISINs) for shares and other securities, asserting that a single ISIN is sufficient for proper identification and trading. Their reasoning stems from a variety of technical, regulatory, and operational considerations that indicate no real need for the duplication of these identification numbers. One ISIN is Sufficient for Identification

Dipesh Ghimire

·

13 Feb, 2026

No Local Government Achieves Full Score in Performance Evaluation, Finds National Natural Resources and Fiscal Commission
Top

3 min read

No Local Government Achieves Full Score in Performance Evaluation, Finds National Natural Resources and Fiscal Commission

No Local Government Achieves Full Score in Performance Evaluation, Finds National Natural Resources and Fiscal Commission Despite several attempts, no local government in Nepal has been able to achieve full marks on all indicators set for performance evaluation by the National Natural Resources and Fiscal Commission. The Commission’s latest report, released Thursday, highlights the persistent gap in local governance, noting that none of the local bodies, even after two election terms since the first local elections in 2074, have been able to fully comply with the established benchmarks.

Dipesh Ghimire

·

13 Feb, 2026

Ministry of Communications and Information Technology Urges Increased Capital Expenditure for Public Benefit
Top

3 min read

Ministry of Communications and Information Technology Urges Increased Capital Expenditure for Public Benefit

Ministry of Communications and Information Technology Urges Increased Capital Expenditure for Public Benefit The Ministry of Communications and Information Technology has directed its agencies to increase capital expenditure and ensure that their performance directly benefits the public. During the second-quarter review meeting of the fiscal year 2082/83, held under the Ministry-level Development Problem Resolution Committee, Secretary Lakshmi Kumari Basnet emphasized the need for identifying and addressing issues to ensure outcome-based performance. Secretary Basnet underscored the importance of enhancing inter-agency coordination to make service delivery more efficient and effective. She also stressed the priority of resolving outstanding financial discrepancies (referred to as "beruju") and mentioned that the Ministry would create a work plan to ensure regular monitoring of these issues.

Dipesh Ghimire

·

13 Feb, 2026

Ministry Reviews Progress of Ongoing Development Projects for FY 2082/83
Top

3 min read

Ministry Reviews Progress of Ongoing Development Projects for FY 2082/83

Ministry Reviews Progress of Ongoing Development Projects for FY 2082/83 The Ministry of Finance has recently concluded the second-quarter review of development projects and programs under its jurisdiction for the current fiscal year 2082/83. The meeting, chaired by Secretary Kedar Nath Sharma, focused on assessing the progress, challenges, and future direction of the ongoing initiatives. The Ministry-level Development Problem Resolution Committee also participated in the discussions, offering insights into how these projects are progressing and the hurdles that remain.

Dipesh Ghimire

·

13 Feb, 2026

Municipalities of Nepal Evaluated by the National Natural Resource and Fiscal Commission: A Comprehensive Report
Top

3 min read

Municipalities of Nepal Evaluated by the National Natural Resource and Fiscal Commission: A Comprehensive Report

Municipalities of Nepal Evaluated by the National Natural Resource and Fiscal Commission: A Comprehensive Report The National Natural Resource and Fiscal Commission of Nepal has recently released its assessment, ranking municipalities across the country based on various criteria. The city of Biratnagar, located in the Morang district, has topped the rankings for the current fiscal year, achieving an impressive score of 78.11%. This high score secured Biratnagar the first position, reflecting its exemplary performance across various indicators. Lalitpur and Kathmandu Cities Follow Close Behind Lalitpur, another major municipality, secured second place with a score of 76.33%, maintaining its reputation as one of the leading urban areas in the country. Kathmandu, the capital city, ranked third with a relatively lower score of 44.97%, highlighting some of the challenges it faces in fiscal and administrative management. The city of Bharatpur in Chitwan, with a score of 68.08%, placed fourth, while Birgunj in Parsa followed with a score of 54%. Pokhara, a prominent tourist destination in Kaski, also performed well with a score of 58.76%. These scores reflect a varied level of performance in key urban centers, which are critical to the country’s economic development.

Dipesh Ghimire

·

13 Feb, 2026

Nepal Telecom Faces Declining Profit Amid Increased OTT Service Usage, Operating Income Shows Modest Growth
Top

3 min read

Nepal Telecom Faces Declining Profit Amid Increased OTT Service Usage, Operating Income Shows Modest Growth

Nepal Telecom Faces Declining Profit Amid Increased OTT Service Usage, Operating Income Shows Modest Growth Nepal Telecom has released its unaudited financial results for the first six months of the current fiscal year, highlighting a notable decline in profit alongside a modest increase in operating income. The results underscore both the challenges and opportunities the company faces in an evolving telecommunications landscape. Profit Decline: A Major Concern Nepal Telecom's net profit for the first half of the fiscal year stands at NPR 4.16 billion, reflecting a 12.98% decrease compared to NPR 4.78 billion in the same period last year. This significant decline in profit can be attributed to several factors, most notably the increasing adoption of Over-The-Top (OTT) services like Viber, WhatsApp, and other messaging platforms. These services are reducing the demand for traditional telecom services, such as voice and SMS, which have historically been a significant revenue driver for Nepal Telecom.

Dipesh Ghimire

·

12 Feb, 2026

Bandipur Cable Car & Tourism Limited Reports Reduced Losses Amid Revenue Growth
Top

3 min read

Bandipur Cable Car & Tourism Limited Reports Reduced Losses Amid Revenue Growth

Bandipur Cable Car & Tourism Limited Reports Reduced Losses Amid Revenue Growth Bandipur Cable Car & Tourism Limited (BANDIPUR) has released its unaudited financial results for the second quarter of the current fiscal year, revealing a notable decrease in losses compared to the same period last year. The company’s improved performance is driven by increased operating revenue and a reduction in expenses, although challenges remain with its retained earnings and earnings per share (EPS). Significant Reduction in Losses For the first six months of the current fiscal year, Bandipur Cable Car & Tourism reported a loss of NPR 7.49 million. This is a significant improvement from the same period in the previous fiscal year, when the company incurred a loss of NPR 25.9 million. The decrease in losses marks a positive trend for the company, signaling that it is moving towards a more sustainable financial position.

Dipesh Ghimire

·

12 Feb, 2026

Mandakini Hydropower Limited Reports Moderate Growth in Revenue and Profit, but Decline in Earnings Per Share
Top

3 min read

Mandakini Hydropower Limited Reports Moderate Growth in Revenue and Profit, but Decline in Earnings Per Share

Mandakini Hydropower Limited Reports Moderate Growth in Revenue and Profit, but Decline in Earnings Per Share Mandakini Hydropower Limited (MHL) has recently published its unaudited financial results for the second quarter of the current fiscal year, revealing a mixed performance with moderate growth in revenue and profit, but a decline in earnings per share. The report outlines both positive trends in electricity sales and profitability, as well as areas that require attention to sustain growth.

Dipesh Ghimire

·

12 Feb, 2026

Nepal Life Insurance Limited Reports Decreased Profit Amidst Growing Revenue and Expenses
Top

3 min read

Nepal Life Insurance Limited Reports Decreased Profit Amidst Growing Revenue and Expenses

Nepal Life Insurance Limited Reports Decreased Profit Amidst Growing Revenue and Expenses Nepal Life Insurance Limited (NICL) has recently published its unaudited financial results for the second quarter of the current fiscal year. The report reveals a notable decline in net profit compared to the same period last year, despite an increase in earned premiums and revenue. This performance underlines both the challenges and opportunities within Nepal's growing insurance sector. Profit Decline Amid Positive Revenue Growth NICL’s net profit for the second quarter of the fiscal year stands at NPR 336.9 million, marking a significant 28.03% decrease from NPR 468.1 million in the same period of the previous fiscal year. This decline in profit has raised concerns, particularly considering the company’s healthy growth in other financial indicators. Interestingly, NICL has reported a 15.37% increase in earned premiums, highlighting the company’s ability to generate more income from its core insurance business. This increase in premiums, alongside a 7.09% rise in total revenue, points to an expanding customer base and greater demand for insurance products.

Dipesh Ghimire

·

12 Feb, 2026