Kathmandu: Surya Life and Jyoti Life Insurance have declared that the joint operation of these companies will kick off from 7th Paush 2079. Both companies have successfully completed the process of merger with each other. Now, other internal preparations are undergoing for the integrated business transaction under the brand name Surya Jyoti Life Insurance Company Limited.
It will be the first merger between two life insurers in the history of the Nepalese insurance industry. Both companies have got the final consent for the merger from the special annual general meeting(SGM) held on 28 Kartik 2079. Nepal Insurance Authority has also given nod for integrated business transactions. Surya Life and Jyoti Life Insurance have merged in a swap ratio of 0.82.45.
Keshab Prasad Bhattarai will be the chairman of the board of directors(BODs) after the integrated business and Prakash Bikram Khatri of Jyoti Life will continue the charge of Chief Executive Officer, while Pawan Kumar Khadka, CEO of Surya Life, will assume his responsibility as Senior Deputy Chief Executive Officer.
Currently, the paid-up capital of Surya Life and Jyoti is Rs. 2.55 billion and 2.42 billion respectively. Based on the swap ratio, the total paid-up capital will be Rs. 4.54 billion. The integrated company can distribute stock dividends to arrange additional Rs. 46 crore from the reserve company to meet the minimum paid-up capital requirement set by the Authority.
Still few more life insurers are under the merger process. In the general insurance business, two mergers have already been successfully concluded.