Nepal Insurance Authority Suspends New Business for Himalayan Reinsurance Limited

The Nepal Insurance Authority (NIA), headquartered in Kupandole, Lalitpur, has officially restricted Himalayan Reinsurance Limited from engaging in any new reinsurance business for the remainder of the current fiscal year. According to the notice published on Baisakh 31, 2083 (May 14, 2026), the decision was finalized by the Authority on Baisakh 29, 2083. This regulatory action follows a period of heightened scrutiny, including recent investigations into alleged financial irregularities within the company.

The restriction has been implemented under the legal authority of Section 136, Sub section (1) of the Insurance Act, 2079. The ban on new business operations is scheduled to remain in place until the end of Ashar, Fiscal Year 2082/83 (approximately mid July 2026). The notice was issued to all relevant stakeholders in accordance with Section 136, Sub section (4) of the same Act.

Despite the suspension of new contracts, the NIA has specified certain exemptions to ensure market stability and the fulfillment of existing obligations. Himalayan Reinsurance Limited is permitted to continue the payment of reinsurance claims and may proceed with retrocession activities related to business conducted prior to the issuance of this notice. These exceptions allow the firm to manage its existing liabilities while the broader restriction on new business remains in effect.