Kathmandu. KATHMANDU: Infomerics Credit Rating Nepal has reaffirmed the Trust Micro Insurance’s Issue Rating to ‘Double B Minus’ and removed it from its negative impact monitoring. This rating indicates that the company is in the category of medium risk in terms of meeting financial obligations. <\/p>\n
According to the rating agency, the company’s liquidity and balance sheet have improved in its ability to bear the claims caused by the riots and unrest on September 23 and 24 last year. 2082. As of mid-July 2018, the company had received claims of about Rs 71.50 million through 11 claims. According to the final report of the assessors, the company is estimated to have to pay only about Rs 19.70 lakh from its own fund, excluding the reinsurance share. <\/p>\n
The solvency margin of the company is 1.98 times. This is 1.3 times more than the minimum set by the regulatory body Nepal Insurance Authority. The company plans to issue primary shares worth about Rs 22.50 crore. This will further strengthen the solvency and capital base. <\/p>\n
The company has rapidly expanded its network in a short span of time since it started commercial operations in March 2024. The company has a presence in 33 service centers including head office, provincial office, branches, sub-branches and extension counters. <\/p>\n
The company is led by Ujjwal Dhungana, CEO of Safari Investment and the main founders of Wiproli Fincorp, Regency Fincorp and Sine Resunga Development Bank. In the micro non-life insurance market, the company’s total insurance income accounted for 24 percent and 25 percent of the company’s net premium income. <\/p>\n
According to Infomerics Nepal, there is a lack of portfolio diversification as more than 90 percent of Trust Micro Insurance’s total premium income comes from the motor insurance sector. The Insurance Authority has set a maximum sum assured of Rs 50 lakh per policy for micro insurance, which poses challenges in expanding the business immediately. There is a need to compete with 3 other micro life insurance companies as well as 14 big non-life insurance companies that are also serving in the micro insurance sector. <\/p>\n
Since it is in the initial stage, the net profit rate is limited to 0.5 percent to 1 percent due to high administrative costs and high management costs. According to the rating report, the main test of Trust Micro Insurance will be to increase the size of the business in the coming days and to balance the base of profit and capital amidst intense competition and regulatory limitations.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. KATHMANDU: Infomerics Credit Rating Nepal has reaffirmed the Trust Micro Insurance’s Issue Rating to ‘Double B Minus’ and removed it from its negative impact monitoring. This rating indicates that the company is in the category of medium risk in terms of meeting financial obligations. According to the rating agency, the company’s liquidity and balance […]<\/p>\n","protected":false},"author":5,"featured_media":207426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45149,45159],"tags":[],"class_list":["post-308868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-laghu-beema-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/308868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=308868"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/308868\/revisions"}],"predecessor-version":[{"id":308869,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/308868\/revisions\/308869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/207426"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=308868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=308868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=308868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}