KATHMANDU: Life Insurance Corporation (Nepal), the second largest life insurance company in Nepal, has signed an agreement with Nepal Reinsurance Company (NRC) whereby it will reinsure all its policies with NRC.

The agreement was signed on Sunday. The government had recently set up NRC to stop the outflow of millions of rupees that was being transferred to foreign reinsurance companies as reinsurance premium.

To strengthen NRC, the government had also introduced a policy making it compulsory for the insurance companies to reinsure at least 20 per cent of their policies with NRC.

In a press statement issued by the company, Abhijit Ghosh Dastidar, officiating CEO of LIC (Nepal), said the company has full confidence in NRC and had hence decided to reinsure all its policies with NRC.