Kathmandu. Credit rating agency Infomerics Credit Ratings Nepal has reaffirmed the Issue Rating of Asian Life Insurance Company Limited ‘IRNA (Issue)’, indicating that the company is secure enough to meet its financial obligations on time and has low credit risk}.TAG_OPEN_span_34
has declined from 9.24 per cent in the previous year to 8.00 per cent in FY 2081/82 and to 6.99 per cent by Q3 of 2082/83, putting some pressure on operating profits{}.
The company’TAG_OPEN_span_30 s total insurance premium has increased by 17 percent to Rs 9.40 billion in the fiscal year 2081/82 and the net profit has increased by 11 percent to Rs 490.4 million TAG_OPEN_span_29 TAG_CLOSE_span_30.
As of mid-April 2082, the company has about Rs 52 billion in life insurance fund and about Rs 322.2 million in the catastrophe fund, so the insured amount will be safe and there will be no big financial risk in the payment TAG_OPEN_span_27 TAG_CLOSE_span_28 of the claim.
In addition, the company has tied up with global reinsurers like Scar SE, Hannover Rica as well as Nepal Reinsurance and Himalayan Reinsurance to limit its risk burden to Rs 4 to 8 lakh per insur TAG_OPEN_span_25 TAG_CLOSE_span_26 er.
Due to financial problems or other reasons, the increase in surrender or partial payment has added challenges to the cash flow management and continuity of the company}.
The company’s paid-up capital reached Rs 5.01 billion and met the regulatory criteria of the Insurance Authority.TAG_OPEN_span_22 The solvency ratio is maintained at 1.33 times, above the minimum threshold of 1.30 times set by the regulator }.
Intense competition among life insurance companies, large claim payment liability of policies with maturity of 15 years and regulatory provision of 100% bonus to the insured are at risk of affecting the returns to the shareholders and the insured in TAG_OPEN_span_16 TAG_CLOSE_span_17 the future.TAG_OPEN_span_17
