Kathmandu:The major chunk of the total investment of two homegrown reinsurance companies is occupied by fixed deposit.
Based on the second quarter’s financial data unveiled by the Insurance Board,about 81.68 percent of total investment of Rs.25.86 billion has been allocated to fixed deposits of commercial banks and development bank.
Private sector’s Himalayan Reinsurance Company has made a total investment of Rs. 7.11 billion till second quarter of current physical year.It has also invested Rs 6.91 billion in FD mostly of commercial banks.
State-owned Nepal Re-insurance, the company has invested Rs.300 million in treasury of the Government of Nepal. It has invested Rs. 94.7 million in ordinary shares of the listed company.Moreover, it has invested Rs. 1.66 billion in bonds and preference shares of banks
Nepal Re has also invested Rs. 944,000 in mutual funds. Similarly, Rs.1.1 billion has been investment in promoter shares of various companies.
Although the Insurance Board has directed the insurance companies to diversify their investments, the companies have not been able to invest in other sector due to risk factor.
