According to industry reports the Nepal Reinsurance Company (NRC) has been growing its international business, and collected Rs100 million (roughly US$969,500) in the first eleven months of the fiscal year.
NRC is Nepal’s sole reinsurer, and has clients across 15 countries, which includes United Arab Emirates, Bahrain, Papua New Guinea and a number of African countries. Four of the reinsurer’s overseas clients are based in Kenya and Bhutan, and the firm is hoping to continue the expansion of its global business operations.
According to an article on the Kathmandu Post, NRC Chief Executive Officer (CEO), Chirayu Bhandari, said; “We have aimed to increase premium collection to Rs150 million by the end of this fiscal year.”
The Nepal government established the NRC in November 2014, in an effort to reduce huge outflows of capital for reinsurance business.
The company sells all types of insurance coverage, with the exception of life and aviation, and in the last fiscal year the reinsurer collected premiums of Rs3.5 billion (roughly US$33.9 million) from both its domestic and foreign customers.
According to reports the NRC has paid up capital of Rs2.1 billion (roughly $US20.3 million), although Bhandari has said the firm increased its paid up capital to Rs5 billion in the last fiscal year, and hopes to increase this to Rs15 billion (roughly US$145 million).
Bhandari continued; ““We are planning to make it mandatory for life and non-life insurers to buy stock in NRC in coordination with the government. By involving life insurance companies as stakeholders, we can make them buy reinsurance from the domestic company.”
In a recent statement by the Nepal government as part of its budget statement for the 2017-2018 fiscal year, insurers were urged to purchase reinsurance protection domestically, so from the NRC.
The statement, said; “Since Nepali insurance companies have been sending large amounts of money to foreign reinsurance companies to buy reinsurance coverage, a mandatory arrangement will be made for Nepali life and non-life insurance companies to buy most of their reinsurance coverage from Nepal Reinsurance Company.”