Sanima and General Insurance Agree for Merger on 1:1 Swap Ratio

Kathmandu: The third merger agreement among non-life insurers has been signed today between Sanima General Insurance Company and General Insurance Company. Khemraj Lamichhane, chairman of Sanima General and Kunal Kayal, chairman of General Insurance have signed the MoU for merger at Hotel Marriott.

After the merger, the name of the company will be ‘Sanima General Insurance Company Limited’. As per the agreement, Kayal will chair the Board of Directors while Sudyumna Upadhyaya of Sanima General will be the Chief Executive Officer.

At present, the paid up capital of both the companies is one billion rupees. As per the last third quarter financial statement, the post-merger reserve fund will exceed Rs. 300 million.

Even after the merger, additional 500 million is required to meet the minimum paid-up capital requirement.

Sanima General Insurance is promoted by Sanima Bank and a group of NRNs while the Keyal Group is the major promoter behind General Insurance Company.

Earlier Himalayan General Insurance and Everest Insurance have already concluded their merger process and expected to commence integrated transaction from Sawan 1(17 July). Premier Insurance and Sidhhartha Insurance have also signed MoU for merger.

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