Kathmandu: The second successful merger between general insurers have got final nod from the Insurance Board. The Board has given its final nod for the integrated business of Sanima General Insurance and Gerneral Insurance Company and allowed to continue to serve under the banner of Sanima GIC Insurance Limited.
The regulatory authority has issued a public notice on Sunday and informed that approval has been given to carry out integrated business in the name of Sanima GIC with effect from 7th Kartik,2079. Sanima Group is the major promoter of Sanima General and Keyal Group is tha major promoter of General Insurance Company. The special general meeting of both companies held on 11 Ashoj 2079 had decided to merger with each other.
This is the second successful merger in the history of insurance industry of Nepal. Earlier, Himalayan General Insurance and Everest Insurance had merged together and commenced integrated business under the name Himalayan Everest Insurance.
With the merger between Sanima and GIC, the number of general insurance shrinks to 18 from 19.
A merger agreement was signed between these two companies on Asar 29, 2079. The Board had given in principal approval on 14 Ashoj 2079. After the merger of these two companies with 1:1 swap ratio, the paid-up capital has reached Rs. 2 billion.
About a dozen insurance companies are currently in the process of merger amid the new provision for regulatory paid-up capital. General insurers are obliged to maintain a minimup paid-up capital of Rs. 2.5 billion rupees within Chaitra 2079. In addition, the life insurance companies have to maintain at least Rs. 5 billion paid-up capital by the end of Chaitra.