Kathmandu: Three life insurance companies Prime Life, Guransh Life and Union Life Insurance have reached an agreement for merger and acquisition.
This the first ever merger/ acquisition agreement reached between life insurance companies. Earlier last week, two non- life insurance companies Himalayan General Insurance and Everest Insurance Company had reached an agreement merger acquisition.
Prime Life has paid up capital of Rs. 2 billion 77 million. Guransh Life has Rs. 2 billion 8 crore 42 lakh and Union Life has a paid up capital of Rs. 2 billion 15 million.
If these companies have a swap ratio of 1:1, then the paid-up capital will be 7 billion 1 million 38 million 66 thousand. That would the second largest paid-up capital among life insurers.
Swap ratio will be determined after the preparation of due diligence audit(DDA). For the actuarial valuation, a team of actuary will be invited next week.