Non-Life Insurers’ Shares Rise Despite Massive Gen Z Protest Claims

Shares of Nepal’s non-life insurance companies climbed on Tuesday despite more than Rs 22 billion in insurance claims filed after extensive damage during the recent Gen Z protests.

Market data show that the non-life insurance sub-index, which had fallen 5.42 percent last Thursday and another 4.02 percent the following trading day, rebounded the most among all sectors on Tuesday, gaining 3.48 percent.

All 13 listed non-life insurers posted share-price gains on Tuesday. This contrasts with last Thursday, when every company’s stock price dropped, and Sunday, when only NLG Insurance and Nepal Micro Insurance closed higher. Total trading volume for the group reached more than Rs 166.6 million on Tuesday.

Rastriya Beema Company remains the most expensive stock in the segment, closing at Rs 15,400 per share. The company saw no trading on Thursday, when the market hit a negative circuit breaker, and its price had fallen Rs 888.16 (5.59 percent) on Sunday. On Tuesday, however, it rose Rs 402.21 (2.68 percent). United Ajod Insurance led the day’s rally with a 6.64 percent surge.

An investor requesting anonymity said market sentiment is driving the upturn. “It’s hard to predict where the market will go next,” the investor said. “With short-term investors dominating, prices can rise quickly as part of brief maneuvers.” He added that traders often shift between sectors, which drew buying interest to non-life insurers after steep losses earlier.

Investors also believe most companies had reinsured the bulk of their risk exposure. Non-life insurers typically retain about 35 percent of riot-related claims up to Rs 100 million, while Nepal Reinsurance Company covers the remainder. Because insurers are liable only for a limited share of payouts, market participants expect them to handle claims without major financial strain.