Non-Life Insurance Companies Pursue Strategies to Meet Capital Requirement By the End of Ashad
Non-life insurance companies in Nepal have been diligently working to meet the capital requirement set by the Insurance Board. The regulatory body had urged these companies to raise their paid-up capital to Rs. 2.5 Arba by the end of Chaitra 2079, but an extension was granted until Ashad end, 2080.
In response to the Insurance Board's directive, insurance companies have adopted various strategies, including pursuing mergers, to enhance their paid-up capital. The aim is to ensure that the required capital of Rs. 2.5 Arba is met by the end of Ashad, as specified by the regulatory authority.
Merged Non-Life Insurance Companies:
Other Non-Life Insurance Companies:
The consolidation efforts have resulted in six merged non-life insurance companies, reducing the total number of listed companies to twelve. However, even after these mergers, some companies such as Sanima GIC Insurance Limited, Himalayan Everest Insurance Limited, and United Ajod Insurance Limited have been unable to meet the capital requirement set by the Insurance Board.
According to Mr. Raju Raman Paudel, the spokesperson of the Nepal Insurance Association (NIA), stated that the non-life insurance companies facing a capital shortfall, with neither mergers nor current capital meeting the requirement, will be issuing the right shares or bonus shares based on their fiscal year-end balance sheets. This strategy is to bridge the gap and meet the Insurance Board's prescribed paid-up capital of Rs. 2.5 Arba by the end of Ashad.
