Nepal Life launches NPR 5 billion investment arm

KATHMANDU, May 10: Nepal Life Insurance Company Limited has officially launched its wholly owned subsidiary,  Nepal Life Investment Company Limited. The company’s central office was jointly inaugurated by Govinda Lal Sanghai, Chairperson of the Board of Directors of Nepal Life, and Sushil Dev Subedi, Executive Director of the Insurance Board yesterday.

Nepal Life has established the new investment company with a capital of NPR 5 billion as part of its strategic expansion into diversified investments. The launch coincides with Nepal Life’s 25th anniversary in the insurance market.

Commitment to Diversification and Financial Security

Speaking at the inauguration ceremony, Chairman Sanghai remarked that as Nepal Life enters its 25th year, it has emerged as the most trusted insurer, holding nearly 30 percent of the market share. He stated that Nepal Life has consistently played a vital role in providing financial protection to families through life insurance. The establishment of the new investment company, he added, reflects the company’s commitment to delivering higher returns and mitigating market challenges.

“Diversifying our investment portfolio is our primary objective, and the creation of this subsidiary aligns with that vision,” Sanghai emphasized. He expressed confidence that the new company will set a new benchmark in the industry while adhering to the regulatory guidelines and maintaining strong corporate governance.

Regulatory Endorsement and Strategic Importance

The Insurance Board has welcomed Nepal Life’s move to diversify investments. Executive Director Subedi described the initiative as a significant step toward long-term strengthening of the insurance sector. In his address, he emphasized that safeguarding and prudently managing the insurance fund, which is built from citizens' savings and assets, is a critical responsibility.

“Money from people’s hard-earned income or business profits ultimately ends up in insurance funds. Thus, it is not just a source of income but also a matter of responsibility,” said Subedi. He underscored the necessity of diversification to reduce financial risk: “Putting all assets into a single basket increases exposure. Risk must be minimized through diversified baskets, which is exactly what Nepal Life has embraced today.”

While noting that the NPR 5 billion investment initiative is commendable, Subedi also acknowledged the challenges. “This fund cannot remain stagnant—it must grow. Achieving that will require state-of-the-art tools, modern technologies, and sound strategies,” he said. “Becoming a market leader is not easy, but your every step can serve as a model for others. I deeply appreciate this bold and innovative move.”

A Vision for Long-Term Returns

Board member Kamlesh Kumar Agrawal noted that Nepal Life has firmly established itself as the nation’s leading insurance company over the past 25 years, thanks to the collective contributions of investors, policyholders, and employees. According to Agrawal, Nepal Life has accumulated a life insurance fund worth NPR 225 billion, and currently serves over 1.7 million policyholders and 186,000 investors.

He stated that the company aims to expand its life insurance fund to NPR 500 billion within the next five years. Establishing Nepal Life Investment Company is crucial to achieving this goal and delivering strong returns to both policyholders and investors.

“Insurance is no longer just about protection—it’s also a means of generating returns,” Agrawal said. “With the aim of offering long-term, high-value returns to policyholders, we have founded this new company.” He added that while the core mission of Nepal Life is to provide insurance services, ensuring high returns requires specialized institutions and professional expertise.

The new investment company will enable Nepal Life to channel investments into various sectors including real estate, agriculture, tourism, hospitality, cable cars, renewable energy, hydropower, and solar energy.

Strengthening Institutional Investment Capacity

Chief Executive Officer Praveen Raman Parajuli highlighted that after establishing itself as a market leader over two and a half decades, Nepal Life has made a significant advancement in institutionalized investment diversification with the launch of its new subsidiary.

“This is a structural departure for Nepal Life, aimed at enhancing our core value proposition,” Parajuli said. “Following the policy direction outlined in the Insurance Act, we are expanding the scope of our investments. The launch of Nepal Life Investment Company signifies the start of implementing that policy into actionable steps.”

Parajuli noted that investment is not a one-time event and carries inherent risks. To manage those risks effectively, the company recognized the need for a separate, specialized team dedicated to investment management, oversight, and strategic decision-making. H

He shared that Nepal Life has already acquired land for building projects in Hetauda and Itahari, with the process underway in Biratnagar. The company plans to purchase land in at least six locations within this fiscal year.

Leadership and Future Outlook

Subash Thapa, CEO of Nepal Life Investment Company, stated that the primary goal of the subsidiary is to protect Nepal Life’s investments while ensuring strong returns. “We will prioritize principal protection and create strong value based on both internal and external assessments,” he said.

Deputy CEO and Chairperson of Nepal Life Investment Company, Amit Kumar Kayal, emphasized that the establishment of a separate investment company marks the beginning of a new culture in Nepal—one that mirrors the practices of developed nations where insurance funds are professionally managed by dedicated investment arms.

“We will place customer interests at the core of all investment activities,” Kayal affirmed. “By managing planning, execution, and regulation in an integrated manner, we aim to uphold transparency and credibility in all our operations.”