Kathmandu: The integrated business of Prabhu Life and Mahalakshmi Life kicked off last Thursday closing the year-long merger process among these two life insurers.
The financial year 2079-80 will be mentioned in the history of the Nepalese Insurance Industry as the year of mergers and acquisitions. 21 insurance companies participated in the merger process and transformed into 10 companies carrying the legends of the old companies.
In Chaitra 2078, the Nepal Insurance Authority hiked the minimum paid-up capital to NPR 5 billion for life insurance companies and NPR 2.5 billion for non-life insurance companies. The insurers were given only 12 months to make arrangements for the minimum required paid-up capital but the Authority remained tough on the issuance of rights shares which forced most of the insurers to opt for merger. As a result, 21 companies participated in the merger and transformed into 10 companies.
Experts opine that still many companies in the market. After the merger, there will be 14 life insurance companies, 14 non-life insurance companies, 2 reinsurance companies, and 7 micro insurance companies. All seven licensed micro insurance companies have not yet started their business.
Companies that have completed mergers within a year
1. 2079 July 1st: Himalayan and Everest transformed into Himalayan Everest
2. 2079 Kartik 7th: Sanima and GIC transformed into Sanima GIC
3. 7th of January 2079: Surya Jyoti transformed into SuryaJyoti Life
4. 2079 February 17: Siddharth and Premier transformed into Siddharth Premier
5. 29th of February 2079: Sagarmatha and Lumbini transformed into Sagarmatha Lumbini
6. 2079 Chait 9th: Sanima and Reliance transformed into Sanima Reliance Life
7. Baisakh 26, 2080: Gurans, Prime, and Union transformed into Himalayan Life
8. Baisakh 27, 2080: IME General and Prudential transformed into IGI Prudential Insurance
9. 14th June 2080: United and Ajod Insurance transformed into United Ajod Insurance
10. 29th June 2080: Prabhu Life and Mahalakshmi Life transformed into Prabhu Mahalakshmi Life