Prabhu Mahalaxmi Life Insurance Rating Reaffirmed at [ICRANP-IR] BBB

ICRA Nepal has reaffirmed the issuer rating of Prabhu Mahalaxmi Life Insurance Limited (PMLI) at [ICRANP-IR] BBB-. This reaffirmation is backed by the company's aggressive business expansion, evidenced by a 28.89% increase in net insurance premiums, reaching Rs 4.15 billion in the third quarter of FY 2082/83. Furthermore, the company maintains a top-tier claim settlement ratio of 98.33%, ranking third among all life insurers in Nepal. While the rating highlights a moderate degree of safety, ICRA noted constraints including a relatively small market share (~3%) and a high operating expense ratio. However, the life insurance fund's growth of 32% to Rs 16.90 billion provides a stable cushion for policyholder liabilities.