Kathmandu: Nepal Life Insurance and LIC Nepal hold almost half of the total investment made by life insurance companies. According to the first quarter’s unaudited financial report of current fiscal year 2079-80, the size of total investment of Nepal Life and LIC Nepal amounts to Rs. 2.2844 trillion. These two companies hold above 45 percent of the total investment by 19 life insurance companies.
These two companies have high bargaining power against the bank and financial institutions(BFIs) for interest rate on term deposits as compared to any other life insurers. Out of the total investment of the life insurance companies, almost 80 percent is concentrated on term deposit of
According to the Q1’s unaudited reportऽ Nepal Life Insurance has made the highest investment of Rs.1.49 trillion 50 million which accounts almost 30 percent of the total investment made by life insurers. LIC Nepal has made total investment of Rs. 78.92 billion till Q1 in 2079-80.In terms of the size of investment, LIC Nepal occupies 15.78 percent of total investment.
National Life Insurance has invested Rs. 49.18 billion and state-owned Rastriya Beema Sansthan has made a total investment of Rs. 41.70 billion. Asian Life Insurance, which is in fifth place in terms of size of investment, has an investment of Rs. 31.52 billion. Met Life (Alico) has total investment of Rs. 24.44 billion.
Union Life Insurance has a total investment of Rs. 13.38 billion. The saving of Union Life Insurance is very low as compared to its total insurance premium income amid high operating cost and management expenses. Mahalakshmi Life Insurance has the lowest investment of Rs. 4.44 billion.