Insurance companies have invested over Rs 30bn in the stock market.

According to the National Insurance Authority (NIA), life and non-life insurance companies have invested a combined Rs 30.16bn in the securities market. While life insurance companies have invested Rs 25.77bn in listed companies, non-life insurance companies have invested Rs 4.39bn as of mid-January of the current fiscal year.

The investment of life insurance companies in the stock market has increased by a whopping 97.66 percent over the past year. Such investments rose from Rs 13.37bn in mid-Jan 2024 to Rs 25.77b in mid-Jan 2025.

Ten life insurance companies have invested over Rs 1bn each in the secondary market. According to NIA, Himalayan Life Insurance has made the highest investment of Rs 7.33bn, followed by Nepal Life Insurance (Rs 3.81bn) and Suryajyoti Life Insurance (Rs 2.31bn).

Citizens Life Insurance increased its investment in the stock market by a staggering 507.4 percent during the review period. The company, which had invested Rs 141.8m as of mid-January last year, has increased its investment to Rs 861.3m. Rastriya Jeevan Beema Company kept its stock market investment unchanged at Rs 2.15bn over the one-year period.

investments by non-life insurance companies in the share market have risen by 26.24 percent over the past year. Non-life insurers had invested Rs 3.47bn in the stock market as of mid-Jan 2024.

Among non-life companies, Rastriya Beema Company (Rs 794.1m) has made the highest investment in the stock market as of mid-January, followed by Neco Insurance (Rs 605.1m) and Sagarmatha Lumbini Insurance (Rs 533.7m).

NLG Insurance increased its stock market investment by 450 percent to Rs 128.7m over the one-year period. Sanima GIC Insurance also raised its investment in securities by 373.18 percent to Rs 344m as of mid-January.

The existing law allows insurance companies to invest up to 10 percent of their technical reserves in the secondary market. “Insurance companies can invest up to 10 percent of their total technical reserves in the ordinary shares of public limited companies listed on the securities exchange markets licensed by the Nepal Securities Board,” reads the Investment Guidelines, 2018, issued by Beema Samiti (now NIA).

The total investment of life and non-life insurance companies stands at Rs 772bn. This means insurance companies can invest a maximum of Rs 77.2bn in the stock market. However, they are investing less than 50 percent of the allowed limit in the stock market.

Insurance experts say there is room for insurance companies to invest another Rs 40bn in the secondary market.