Kathmandu: The total capital investment in the global reinsurance sector in 2021 reached USD 728 billion at the end of the year. This is an increase of 8.4 percent over December 31, 2020.
Global reinsurance broker Gallaghar Re’s latest Reinsurance Market Report, the total capital growth has reached 70 percent in 2015 compared to 2015 due to strong risk and investment performance by reinsurers and continuous rate improvement in almost all primary insurance titles.
During this period, Himalayan Re-insurance Company has also come into operation in Nepal with a paid up capital of NPR 7 billion. Himalayan Re is the second re-insurance company of Nepal. It has been founded by the private sector. The company has NPR 21 billion authorized capital and NPR 10 billion issued capital.
asianinsurancereview.com mentions that according to Gallaghar Re, the average return on equity investment has improved significantly, from 2.7 percent to 11.4 percent on a reported basis, and from 1.3 percent to 6.2 percent on an underlying basis. The return on the industry’s underlying investment still does not cover its capital cost, which exceeded 8 percent in 2021.