Kathmandu: The merger process between Everest Insurance and Himalayan General Insurance Company has been concluded after final approval received from the Insurance Board. The Board has decided to give final approval to the merger.
Chairman of the Board Surya Prasad Silwal said that the final approval was given on to the two general insurers to conduct integrated business after the merger as per the decision taken on Tuesday on the basis of all the documents of these companies. This is the first merger in the insurance industry which has been concluded successfully.
The swap ratio between Himalayan General Insurance and Everest Insurance is 1:0.85. It means the 100 shares of Everest Insurance equals to 85 shares of Himalayan General. The new company is named Himalayan Everest Insurance Limited. The company has stated that it will start integrated business from the beginning of the new fiscal year 2079/80(mid July).
After the merger, it has been agreed that the BODs will be chaired by the promoter of Himalayan General Insurance. Additionally, three members of BODs will represent the Himalayan General and three from Everest Insurance. Similarly, Vijay Bahadur Shah will be the Chief Executive Officer and Kamal Gautam will be the Senior Deputy Chief Executive Officer. Shah is currently the CEO of Himalayan General Insurance and Gautam is the CEO of Everest Insurance.
After the merger, the company’s capital will reach around Rs 2.23 billion. As per the new provision for paid up capital of non-life insurers, the minimum paid up capital must be Rs.2.5 billion by the mid April 2023.