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Insurance companies have collectively invested over Rs 600bn across various sectors until the fiscal year 2022/2023.

Data compiled by the Nepal Insurance Authority (NIA) shows that life and non-life insurance companies have invested Rs 627bn by mid-July 2023. Investments of insurance companies increased by 18.95 percent in 2022/23. Such investments were Rs 527bn at the end of 2021/22.

Officials of NIA say insurance companies are investing by adhering to the investment guidelines brought by the insurance regulatory body. A major chunk of such investments seems to be in the form of fixed deposits.

Lately, they have started to invest in commercial banks and airline companies, among others. Asian Life Insurance recently acquired a 40 percent stake in the domestic carrier, Yeti Airlines, by paying Rs 1.75bn.

The NIA has been encouraging insurance companies to invest in sectors that deliver higher returns so that insured individuals get better returns.

Non-insurance companies have made total investments of Rs 568bn, a growth of 20 percent from Rs 473bn in 2021/22.

According to the NIA, about 77 percent of investments of life insurance companies, or Rs 437bn, is in the form of fixed deposits with Class ‘A’, Class ‘B’, and Class ‘C’ financial institutions as well as infrastructure banks licensed by the Nepal Rastra Bank. Likewise, about 7 percent of their investments, or Rs 41.34bn, is in preference shares, bonds, debentures, and treasury bills, among others.

Similarly, non-life insurance companies have invested Rs 58.85bn in different sectors by mid-July 2023. This is a growth of 9 percent compared to 2021/22 when they had invested Rs 53.91bn.

About 80 percent of investments of non-life insurance companies, or Rs 47.44bn, is in the form of fixed deposits with Class ‘A’, Class ‘B’, and Class ‘C’ financial institutions and infrastructure banks licensed by the central bank. They have invested about Rs 2.87bn, which is nearly 5 percent of their total investments, in ordinary shares listed on the Nepal Stock Exchange.

The price of gold has increased by Rs 600 per tola in the domestic market on Tuesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 120, 500 per tola today. It was traded at Rs 119, 900 per tola on Monday.

Meanwhile, tejabi gold is being traded at Rs 119,900 per tola. It was traded at Rs 119, 350 per tola.

Similarly, the silver is being traded at Rs 1, 485 per tola.

The gold is being traded at Rs 119, 900 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, tejabi gold is being traded at Rs 119, 350 per tola.

Similarly, the silver is being traded at Rs 1,475 per tola today.

Nepal Airlines Corporation (NAC) has published a 45-day auction notice to dispose of its five China-made aircraft—two MA-60s and three Harbin Y-12s.

According to Ramesh Poudel, the spokesperson for the NAC, the national flag carrier will hand over the aircraft to parties quoting the higher prices.

NAC grounded these aircraft three years ago. The annual cost of NAC for these aircraft hovers above Rs 200m. One of the aircraft, Y-12, crashed at Nepalgunj Airport. NAC has already received the insured amount for the aircraft.

Earlier, NAC had also published two auction notices to get rid of these aircraft. However, it didn't receive any applications.

NAC inducted the six aircraft into its fleet in 2014 to expand its share in the domestic market. The Chinese government provided one MA-60 and Y-12 as a grant, while it arranged a concessional loan to finance the purchase of three Y-13 and one MA-50 through a government-to-government agreement.

NAC owes nearly Rs 4bn to the Chinese lenders. According to the national flag carrier, it incurred a loss of Rs 2.5bn in five years from operating the aircraft.

NAC was to begin installment payments from Oct 2020. However, the aircraft were grounded from July of the same year.

NAC has cited reasons like a lack of trained pilots, high training costs to produce pilots (which are said to be four times higher compared to other aircraft) and high insurance fees, among others, behind its decision to ground these Chinese aircraft.

House committee to study EU blacklist

The International Relations and Tourism Committee of the House of Representatives has decided to study the decision of the European Union to continue Nepal on its Air Safety List.

A meeting of the committee held on Thursday decided to form a technical sub-committee to study the matter.

Earlier, the committee had sought a comprehensive plan from the Nepal Airlines Corporation (NAC) to address concerns raised by the EU in its safety audit. NAC had submitted its plan in the meeting.

The Civil Aviation Authority of Nepal (CAAN) has also submitted its report, specifying future plans, to the committee.