Kathmandu: The growing market share of the private sector’s reinsurer, Himalayan Reinsurance(Himalayan Re) has posed threat to the market share of the state-owned reinsurer, Nepal Reinsurance Company(NRIC).
According to the quarterly financial unaudited report published by NRIC, the total reinsurance premium income declined by a whopping 38 percent as compared to the same period of last FY.
NRIC earned a total of Rs 2.79 billion in total reinsurance premiums in the first three months of the current FY. The reinsurance premiums declined by 38 percent as compared to the Q1 of last FY 2078-79. Himalayan Re earned a total of Rs. 1.19 billion in reinsurance premiums in the first quarter of FY 2079-80. FY 2079-80 will be the second full financial year of operation for Himalayan Reinsurance.
The company earned Rs.2.71 billion during Q1 of last FY. It paid a total of Rs. 1.30 billion against the claim in three months.
Despite being a private sector reinsurer, Himalayan Re has gained special favor from the Nepal Insurance Authority to receive reinsurance business from local insurers. At least 20 percent of the total re-insurance business of the local re-insurer has been assured to the Himalayan Reinsurance.
NRIC earned Rs. 188.930 million in the first quarter of the current financial year 2079-80. According to the unaudited financial report published by the company Rs.164.9 million was earned from the general insurance business and Rs.75 million from the life insurance business.
NRIC has Rs. 11.85 billion paid-up capital, Rs. 6.48 earnings per share while net worth per share remained at Rs.173.34 in the first quarter.