Nepal Reinsurance has received business worth NPR1.5bn ($12.9m) from six Indian insurers since it received approval to extend its operations to India.
They include Oriental Insurance, National Insurance, United Insurance, New India Assurance, Universal Sompo General Insurance and Edelweiss Tokio Life Insurance, said Nepal Re's CEO, Mr Chirayu Bhandari.
Besides dealing with domestic insurance companies, Nepal Re has expanded its operations across 28 countries including SAARC (South Asian Association for Regional Cooperation) member states. Apart from India, the company has clients in the UAE, Bahrain, Papua New Guinea and a number of African countries including Kenya, reports The Kathmandu Post.
Nepal Re has paid NPR750m in relation to retrocession transactions to foreign reinsurers out of its total insurance premium portfolio worth NPR4bn in the fiscal year ended 15 July 2018.
Nepal Re claimed that it had been able to significantly reduce the amount of money going outside the country for the purpose of reinsurance by expanding its reinsurance portfolio with domestic insurers.
The government has made it mandatory for domestic insurance companies to reinsure at least 20% of their risks with domestic companies.
Insurers like LIC Nepal, Surya Life, Gurans Life, IME Life, Sanima Life and Rastriya Beema Sansthan have been reinsuring all their risks domestically.
“Instead of 20%, Nepal Re has received the full treaty of these life insurers along with the expat insurance of foreign-bound workers,” said Mr Bhandari.
Nepal Re has received NPR700m in reinsurance business from these local life insurance companies. Including the NPR1.25bn from a terrorism pool, the reinsurer has collected premiums totalling NPR4bn.
In 2003, the government set up the Insurance Pool with the aim of preventing money from going out of the country in reinsurance premiums. The pool was turned into Nepal Re in November 2014. The government owns 50% of Nepal Re and insurance companies, mainly non-life companies, hold the rest of the shares.