KATHMANDU, May 12: Three life insurance companies—Prime Life, Union Life and Gurans Life—signed an agreement for merger on Thursday. Provided the merging of these insurers is materialized, it will be the first merger in the life insurance business of the country.
Amid the Insurance Board (IB) giving pressure on the life insurance companies to increase their paid up capital to Rs 5 billion by mid-April 2023, these insurers have stepped up for the merger. However, the swap ratios of these insurers are yet to be decided.
As of now, Prime Life Insurance has paid up capital of Rs 2.77 billion. The capital base of Union Life Insurance and Gurans Life Insurance are Rs 2.15 billion and Rs 2.08 billion, respectively. Following their merger, the entity will have a paid up capital of Rs 7.01 billion.
In the first nine months of the current fiscal year, Prime Life Insurance earned a profit of Rs 189.84 million while it maintained Rs 17.63 billion in its life-insurance fund. Similarly, Union Life Insurance earned Rs 27.27 million and its life-insurance fund amount stands at Rs 10.34 billion.
Over the period, Gurans Life Insurance had earned a profit of Rs 131.60 million and maintained Rs 12.06 billion in its life-insurance fund.