Kathmandu: Sagarmatha Insurance Company and Lumbini General Insurance Company have reached a final agreement to merge. Once the merger between these two companies succeed, the minimum paid-up capital specified by the Insurance Board will be achieved.
At present, the paid-up capital of Sagarmatha Insurance is Rs 1.33 billion while that of Lumbini General is Rs. 1.31 billion. If merged on an equal footing, the paid-up capital will be Rs. 2.64 billion.
As directed by the Insurance Board recently, non-life insurance companies must maintain a minimum paid-up capital to Rs 2.5 billion by the end of current year. Sources from both companies have stated that the swap ratio will be decided only after DDA.
Following the directive of the Insurance Board, Everest Insurance and Himalayan General Insurance Company have already concluded their merger process successfully. After that, Premier Insurance and Siddhartha Insurance, Sanima General and General Insurance also agreed to the merger. On the life side, Prime Life, Gurans Life and Union Life, Sanima Life and Reliance Life have agreed to merge. But so far no life insurance company has announced the integrated business.