Kathmandu. Lately, life insurance companies have aggressively increased their investment in the shares of listed companies. Life insurance companies have started increasing their investment in the stock market after the interest rate of banks has been reduced for a long time.

At present, the interest rate of the banks has come down and the banks are reluctant to invest in fixed deposits. The corporate interest rate has come down to below 3 percent.

Most of the insurance premiums collected by insurance companies are kept in the fixed deposits of the banks. This makes it easier to pay the claim after the end of the insurance period. That is why the banks used to keep most of the money in the bank’s term. Now, with the reduction in interest rates, life insurance companies have shifted their investments in the stock market.

At present, insurance companies have been investing in various companies by issuing closed and open-ended mutual funds.

In the same period of the last fiscal year, the investment of 13 life insurance companies increased by 64.54 percent to Rs 42.40 billion. The company had posted a net profit of Rs 25.77 billion in the same period last year.

Out of the 14 insurance companies in operation, Met Life Insurance has not invested in the stock market. Similarly, the investment in the share market of the government-owned National Life Insurance Company decreased by 73.07 percent to Rs 581.5 million.

Himalayan Life Insurance Company (HLIC) has invested the most in the stock market with Rs 12.47 billion. This amount is 70.16 percent more than the same period last year.

Similarly, Nepal Life Insurance has increased its investment in the listed companies by 72.23 percent to Rs 6.56 billion.

Similarly, the share of Surya Jyoti Life Insurance has increased by 100.23 percent to Rs 4.64 billion, while the investment in the market of Life Insurance Corporation has increased by 38.25 percent to Rs 3.11 billion, IME Life Insurance has increased by 79.37 percent to Rs 2.56 billion, and Reliable Nepal Life Insurance has increased by 77.75 percent to Rs 2.38 billion.

Similarly, Prabhu Mahalaxmi Life Insurance has increased by 95.91 percent to sit at Rs 2.01 billion, Sanima Life Insurance has increased by 175.19 percent to Rs 1.84 billion, National Life Insurance has increased by 126.04 percent to Rs 1.76 billion, Sun Nepal Life Insurance has increased by 50.08 percent to Rs 1.63 billion, Citizen Life Insurance has increased by 86.78 percent to Rs 1.60 billion. Asian Life Insurance Company Ltd (LIFE) increased by 73.85 percent to Rs 1.20 billion.