Sun Nepal Life Insurance Calls AGM With Agenda to Discuss IPO Issuance; This is How CARE Ratings Has Rated The Company

Sun Nepal Life Insurance Company Limited has called its 3rd AGM on 25th Shrawan, 2078. The meeting will be held in the company's corporate office in Kamaladi, Kathmandu, starting at 3 pm that day.

These are the usual agendas of the AGM:

1) Endorsement of fiscal reports of FY 2075/76.
2) Appointment of auditor for FY 2076/77 and approval of their remuneration.

Apart from these usual agendas, there is a particularly prime agenda to discuss the issuance of an IPO. CRNL has assigned grading of ‘CARE-NP IPO Grade 4’ to the proposed Initial Public Offer (IPO) of Sun Nepal Life Insurance Company Limited (SNLIC), indicating Below Average Fundamentals. SNLIC proposes to issue 60 lakh shares with a plan to raise Rs. 60 crores.

The grading assigned to SNLIC is constrained by the short track record of its operation, competition from other insurance companies coupled with relatively small market share in the industry. Further, the grading is constrained by a lower solvency ratio vis-à-vis the regulatory requirement and concentration in endowment policies.

The grading, however, derives strength from a strong promoter group, experienced board, and management team, and moderate financial risk profile with improving combined ratio. Further, grading is supported by SNLIC’s adequate geographical coverage through branches and good asset quality of the investment book.

Sun Nepal Life Insurance Company Limited (SNLIC) is a life insurance company that obtained its license from Insurance Board on August 2, 2017. The company has been offering an extensive range of products as Money Back, Endowment, Whole Life, Term Assurance products, etc. through its diversified sales network. It has a branch network of 21 (including head office), 56 sub-branches, and 15,838 insurance agents as of Mid-Dec 2019.

AGM notice

CARE Ratings