The Nepal Reinsurance Company (NRC) has expanded its business internationally to 15 counties over the past 11 months, it has been revealed.
The reinsurer has collected close to US$1 million (NPR 100m) in premiums from abroad over that timeframe and boasts clients in 15 countries including UAE, Bahrain, Papua New Guinea and a number of African countries.
The Kathmandu Post reports that the only reinsurer in the country has four foreign clients that are also reinsurance companies based in Kenya and Bhutan and expects to further grow its international footprint.
“We have aimed to increase premium collection to Rs150 million by the end of this fiscal year,” NRC CEO Chirayu Bhandari said, according to the publication.
Founded by the Nepalese Government in 2014 to stem capital outflows, the reinsurer was formally the Insurance Pool, founded in 2003 to cover damage related to terrorism.
With 17 non-life insurers operating in Nepal, and almost all of them purchasing reinsurance cover from the firm, the NRC will aim to increase capital from NPR5bn (US$4.8m) to NPR15bn (US$14.5bn) over the coming years.
“We are planning to make it mandatory for life and non-life insurers to buy stock in NRC in coordination with the government,” Bhandari continued. “By involving life insurance companies as stakeholders, we can make them buy reinsurance from the domestic company.”
The Government owns 43% of the firm, with 17 non-life firms taking control of 38% and life insurers holding 18% of the firm’s stock.
A recent budget statement from the Nepalese Government said that “a mandatory arrangement” will be made for insurers in the country to buy most of their reinsurance coverage from the NRC.
Related stories:
Singapore Reinsurers’ Association announces new exec committee
Asia Capital Re names Bobby Heerasing as deputy CEO
.jpg)
