Kathmandu: The history of the second successful merger among insurance companies has been created by Sanima General and General Insurance Company. The two companies have announced of integrated business from the 7 Kartik 2079.
Earlier, Himalayan General and Everest Insurance Company had done the first successful merger among general insurers. Now the two companies have merged and are operating under the name Himalayan Everest Insurance Company.
The Insurance Board, regulatory authority had given final nod to Sanima and General Insurance for merger on 14 Ashoj 2079. The company registrar’s office has also given approval on 27 Ashoj 2079 for integrated transaction.
The decision of the Joint Merger Committee held on 31 Ashoj 2079 has decided to run the integrated business from 7 Kartik.The new company will be named Sanima GIC Insurance Limited.
Currently, 19 companies are in the process of merger following the instruction of the Insurance Board for merger and acquisition to meet the minimum paid-up capital requirement. Since, the insurers have only six months left to arrange the additional paid-up capital, it is expected that more companies will opt for the merger amid toughened road ahead to arrange additional fund for equity investment.
The minimum paid-up capital for general insurer is Rs. 2.5 billion while of life insurers Rs. 5 billion. The average paid-up capital of the general insurers is around Rs. 1 billion and Rs. 2.5 billion of life insurers.