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Kathmandu, Nepal, June 27, 2022: Following the directive of the Insurance Board to raise the paid-up capital to Rs 5 Arba, the Surya Life Insurance Company Limited (SLICL) and Jyoti Life Insurance Company Limited (JLI) have made agreement for the merger.
The Chairman of SLICL Mr Keshav Prasad Bhattarai and the Chairman of JLI Mr Nand Kishor Sharma signed a Memorandum of Understanding (MoU) amid a function organized in Kathmandu on Monday.
The 318th and 109th board meetings of SLICL and JLI held on Sunday had passed the agenda for merger between the two companies. It is said that the swap ration will be finalized latter.
As the Insurance Board had issued a directive to the insurance companies to increase their paid-up capital, insurance companies, regardless of life or non-life insurance companies have intensified their efforts for the merger to meet the ceiling of the pad-up capital.
As per the directives of the board, the non-life insurance companies should raise the minimum limit of paid-up capital to Rs 2.5 Arba while the life insurance companies should increase it to Rs 5 Arba by the end of this year 2079.
Other several insurance companies namely as the Union Life Insurance Co Ltd (ULI), Gurans Life Insurance Co Ltd (GLICL), and Prime Life Insurance Co Ltd (PLIC) have signed in a merger agreements while others are on the process of internal negotiations.
