Kathmandu: The state-owned reinsurance company, Nepal Reinsurance Company (Nepal Re) celebrates its nineth anniversary today. The official business of Nepal Re was started from 21st Kartik 2071.
On the occasion of 9th anniversary, the company has expressed its gratitude to the Government of Nepal, the Ministry of Finance, all the regulatory bodies including the Insurance Board, domestic and foreign insurance and reinsurance companies, reinsurance brokers.
In the last 8 years, the company has established business relations in more than 30 countries of the world and managed to bring in billions of rupees in premiums to Nepal.
In 2061 BS, an emergency insurance fund was formed on the initiation of Government of Nepal and general insurers. During the Maoist led War that lasted for 10 years from 2052 in Nepal, the damage caused by terrorist attacks were compensated a such emergency insurance fund. On Mangsir 5, 2063, after the rebel Maoist Party signed the comprehensive peace agreement with the Govt. of Nepal, the fund was transformed to a reinsurance company i.e. Nepal Reinsurance Company. The Govt had contributed Rs. 50 lakh while 17 general insurance companies had contributed Rs. 35 lakh each.
Nepal Re is going through a tough competition with the presence of Himalayan Re-insurance Company. Himalayan Re has been equally favored by the state though it’s a private sector’s venture. The Insurance Board has already directed all the insurance companies to equally distribute business to both of these Reinsurers. The new Insurance Act 2079 has ensured 20 percent direct cession to both indigenous reinsurance companies.
Since inception Nepal Re has been able to distribute 19 percent and 5.26 percent dividends which includes 16.5 percent stock dividend for the FY 2076-77 and 5 percent stock dividend for FY 2077-78. It’s current paid-up capital is Rs. 12.23 billion.