Kathmandu: Surya Life Insurance and Jyoti Life Insurance have signed the final agreement to sum up of first ever merger among life insurers in the history of Nepalese insurance industry.
In an event held on Friday at Hotel Yak & Yeti, the Chairman of both companies have signed the final agreement for merger. The team of Surya Life was represented by Chairman Mr. Keshab Prasad Bhattarai and Jyoti Life was represented by Chairman Nanda Kishor Sharma.
The initial agreement regarding the merger between the two companies was completed on 12th Ashadh 2079 and the in-principle consent was obtained from the Insurance Board on 13th Ashadh.
As mentioned in the final agreement, the name of the company formed after the merger will be Suryajyoti Life Insurance Company Limited, while the registered office will be at Biratnagar, Morang and the central office will be at Gyaneshwar, Kathmandu. After the merger, a 7-member board of directors(BODs) consisting of 3 members and one independent director will be formed with representation from from both companies.
Keshab Prasad Bhattarai of Surya Life Insurance will be the chairman of the new BODs while Prakash Bikram Khatri of Jyoti Life Insurance will get the responsibility of the chief executive officer(CEO). Pawan Kumar Khadka, the CEO of Surya Life Insurance, will be the senior deputy CEO.
The share swap ratio is 1:0.8245.The shareholders of Surya Life will get 1 share equal to 1 share of the shares of the new company while the shareholders of Jyoti Life will get 0.8245 shares equal to 1 share. The total paid-up capital of the company after the merger will reach Rs. 4 billion 55 million.
With the final agreement, both companies have agreed to convene a general meeting soon for the endorsement of the final agreement. Once the house endorses the agreement, it will be forwarded to the Insurance Board for final nod. Both companies aim to conduct the integrated business within the end of Mangsir 2079.
The main indicators of the company after the merger (according to the unaudited financial statement of the fourth quarter of FY 078/79, life insurance fund is Rs. 20.36 billion, reserve fund Rs. 1.44 billion, total investment Rs. 23.78 billion, net profit is Rs. 37.37 million. And the total insurance fee is Rs.8.86 billion.
