Kathmandu: Three life insurance companies, Prime Life Insurance Company, Union Life Insurance Company and Gurans Life Insurance Company have signed final merger agreement to form ‘Himalayan Life Insurance Company Limited’ by merging on equal foot.
The chairman of Board of Directors(BODs) Shulav Agarwal on behalf of Union Life, Piyush Raj Aryal on behalf of Prime Life and Vivek Dugad on behalf of Gurans Life signed the final agreement on Sunday at Hotel Aloft.
The preliminary memorandum of understanding (MoU) was signed on 29th Baisakh 2079.The final memorandum of understanding today after the DDA report.
After finalizing the DDA report, all the three companies have agreed the swap ratio at 1:1:1. Before this, there was confusion as to how long the swap ratio would be maintained.
It has been agreed that the Chief Executive Officer of Himalayan Life will be the current CEO of Union Life, Manojalal Karn.The CEOs of the remaining two companies, Bipin Lal Karna of Gurans and Nirmal Dahal of Prime Life will be the Senior Deputy Chief Executive Officers.
It has been agreed that Sulabh Agarwal of the Union Life will be the chairman of the board of directors. The central office will be at Naxal.
After the proposed 13 percent bonus share distribution of Prime Life, the paid-up capital will reach Rs. 3 billion 140 million. Similarly, the paid-up capital of the Union Life is Rs. 2 billion 15 million. After the proposed 8.65 percent bonus share distribution, the paid-up capital will reach Rs. 2.33 billion. In addition, there is 2 billion 23 million rupees of Gurans Life. After the successful of merger process, the accumulated paid-up capital will be Rs. 7.69 billion.
According to the first quarter financial statement of the current year, Prime Life’s life insurance fund has 19.89 billion rupees. Similarly, Union Life has 12.32 billion rupees and Gurans Life has 13.11 billion rupees.
