As per the directive of Nepal Insurance Authority (NIA), non-life insurance companies can invest 10 percent of its total investable fund in the market.
The companies have huge investment in various banks and financial institutions based on investment diversification. The companies diversified their investment in government bonds and saving bonds, real estate, debenture issued by listed companies, agriculture produce, tourism industries, electricity transmission line, education and health sector, investment companies and other public and non-listed companies.
Out of investment portfolio of Rs 63.55 billion, the companies have invested Rs 3.57 billion in share market. It is just 5.63 percent of total investment portfolio. They can invest additional Rs 2.77 billion in the market exercising the limit given by NIA.
Among the companies, Rastriya Beema Company has the highest investment in the share market. The company invested nearly 10 percent of its investment portfolio of Rs 8.10 billion amounting to Rs 794.2 million in the share market.
Meanwhile, NLG Insurance has the lowest investment of Rs 41 million in the market.
