SIC and LGIC strike merger deal

Published On: July 14, 2022 07:02 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, July 14: Sagarmatha Insurance Company (SIC) and Lumbini General Insurance Company (LGIC) on Thursday signed a memorandum of understanding for merger.

SIC board member Lokmanya Golchha and LGIC board member Arun Raj Shrestha inked the agreement for the unification. SIC and LGIC have agreed to maintain a swap ratio at 100:80. LGIC Chairman Manohar Das Mool will hold the position of chairman while current Chief Executive Officer of SIC Chunky Chhetry will work as the CEO of the merged entity.

Giving a deadline of mid-April 2023, the Insurance Board has been pushing the insurers to either increase their capital base or go into a merger if they fail to do so. According to the regulator, the life insurance companies will have to increase their paid-up capital to Rs 5 billion from the existing Rs 2 billion. Similarly, non-life insurers will have to raise their capital to Rs 2.50 billion from Rs 1 billion.

As of now, Everest Insurance Company and Himalayan General Insurance Company have started a process for merger. Similarly, Prime Life, Union Life and Gurans Life have already signed agreements for merger.  


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