Kathmandu: Prabhu Life Insurance(PLI) is seeking partner for merger and acquisition amid the ongoing wave of merger and acquisition in the domestic insurance industry.
In an exclusive interview with insurancekhabar.com, Santosh Prasain, the CEO of PLI disclosed that to coop with the changing scenario of the life insurance market, it is seeking for appropriate partner for merger or acquisition. CEO Prasain said, ”We would have no options left if the regulatory authority denies our capital increment plan”.
“Since we have very limited time span to meet the regulatory capital requirement”, He said, “Some more companies including new comers like us too will seek some strong partner for merger.” He opines that the strategy of merger will further strengthen the insurance industry in the domestic market.
He further elaborated that, if the regulatory authority allows to implement capital plan, then the agenda of merger will be kept aside for the time-being.
In an inquiry about the traditional investment strategy of insurers, Prasain, a Chartered Accountant, admitted that underwriting profit is no more enough for a good return to the policyholders and investors. We can jointly invest on infra development projects to minimize the risk and maximize the return.
The Insurance Board, regulatory authority for insurance industry, has given only 12 months time limit to almost double the existing minimum paid-up capital. So, some insurers have already announced merger while some others have announce MoU for merger and acquisition.
