Kathmandu: Himalayan Reinsurance(Himalayan Re) is awaiting the nod from the regulatory authority to issue initial public offerings(IPOs) at a premium. According to the credit rating agency AM Best, Himalayan Re has approached the regulatory authority (Nepal Insurance Authority) to get approval for the IPOs at a premium.
AM Best has announced that it has placed ‘under review’ with positive implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Himalayan Re. Earlier on 24 February 2022, AM Best assigned a Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) to the reinsurer.
Himalayan Re mulls to raise NPR 3 billion from IPOs. It has a paid-up capital of Rs. 7 billion with contributions from the promoter shareholders. With the IPOs at a premium, the re-insurer is expected to increase its equity capital by more than double.
The company had its first full-year operation during the last financial year 2078-79(2021-22). Its total premium collection was Rs.867.9 million with a net profit of Rs.273.9 million. It made Rs.575.7 million income from investment and credit.