Kathmandu: The consolidated business transaction of Sanima Life Insurance and Reliance Life Insurance Company kicked off on Thursday following the merger agreement between the board of directors of both insurers. They started their integrated business with the name Sanima Reliance Life Insurance Company Limited.
Surya Prasad Silwal, the chairman of Nepal Insurance Authority, inaugurated the integrated business during a formal event held on Thursday at Hotel Soaltee Kathmandu. He congratulated the team of both insurers for the successful closure of the merger agreement. This is the second successful closure of the merger agreement between life insurers. Earlier, Surya Life Insurance and Jyoti Life Insurance merged into Surya Jyoti Life Insurance.
The two companies signed a preliminary memorandum of understanding for the merger on Asar 29, 2079. These companies merged at a swap ratio of 1:1. The agenda of the merger was passed by the annual general meeting of both life insurers on Falgun 12, 2079.
The total paid-up capital of Sanima Reliance Life Insurance is NPR 4.94 billion which is very close to the regulatory paid-up capital requirement. and that of Sanima Life is NPR 2.184 billion. The new company will need an additional NPR 816 million for NPR 5 billion paid-up capital as per the regulatory requirement.
The total number of employees exceeded 550 while the branch network reached 175. The poor-performing branch offices were closed. There are a total of 20 life insurance plans and a total of 12,500 active agents in the Sanima Reliance Life.
The total insurance fund exceeds NPR 8.33 billion after the merger. Based on the second quarter’s unaudited financial statement, the aggregate reserve fund exceeded NPR 758.4 million.