As per the provision of Nepal Insurance Authority (NIA), life insurance companies can invest 10 percent of their investable fund in the stock market.
By the third quarter of the current FY, the companies invested Rs 15.09 billion in shares of listed companies which is 2.29 percent of their investable fund.
According to the data of NIA, the companies invested Rs 660.12 billion in various sectors. Given that they have invested merely 2.29 percent to the sector, they can still invest 7.71 percent which is more than Rs 50 billion in the stock market.
On the basis of investment, out of 14 life insurance companies, Nepal Life Insurance has the highest investment in the share market. As per the data, it invested Rs 2.86 billion in stocks which is 1.47 percent of total investment made by the company. Its investment portfolio has neared Rs 200 billion.
After Nepal Life, Himalayan Life Insurance invested Rs 2.83 billion in stocks which is 4.64 percent of its total investment.
