Insurance Companies to Raise Paid-Up Capital, Here's the Current Capital Structure of All Insurance Companies
Thu, Mar 24, 2022 7:52 PM on Stock Market, Latest,
Beema Samiti has decided to raise the minimum bar on paid-up capital of insurance companies.
The meeting of the board of directors of Beema Samiti held today has decided to raise the paid-up capital of life insurance companies to Rs. 5 Arba and that of non-life insurance companies to Rs. 2.5 Arba.
Beema Samiti believes increasing the paid-up capital has the following benefits for insurance companies:
1) Increase in the overall net worth of the companies.
2) Increase in the insurance companies' risk-bearing capacity.
3) This move promotes mergers and acquisitions among insurance companies, hence maintaining a healthy number of insurers in the market.
4) Raising the paid-up capital enables a stronger capital base, reduces operational cost, and hence facilitates the expansion of insurance reach in the nation.
The aforementioned paid-up capital structure should be maintained by all insurance companies by Chaitra 2079. In case an insurance company can't maintain the aforementioned paid-up capital itself, it should take the merger and acquisition route.
All insurance companies should submit their capital plan to Beema Samiti within 30 days from today.
Now, insurance companies can issue bonus shares, right shares, an FPO, or take the merger and acquisition route in order to meet the revised capital structure. Issuing bonus shares and taking the merger route seems the most likely.
Only life insurance and non-life insurance sector indices had gained in today's market session.
Update:
Capital Structure of Non-Life Insurance Companies
|
S.N. |
Symbol |
Company |
Existing Paid-up Capital (Rs) |
Paid-Up Required (Rs) |
Additional capital needed |
Required Rise (Percent) |
|---|---|---|---|---|---|---|
|
1 |
RBCL |
Rastriya Beema Company Limited |
266,639,000 |
2,500,000,000 |
2,233,361,000 |
837.60 |
|
2 |
SGI |
Sanima General Insurance Limited |
1,000,000,000 |
2,500,000,000 |
1,500,000,000 |
150.00 |
|
3 |
AIL |
Ajod Insurance Limited |
1,000,000,000 |
2,500,000,000 |
1,500,000,000 |
150.00 |
|
4 |
GIC |
General Insurance Company Nepal Limited |
1,000,000,000 |
2,500,000,000 |
1,500,000,000 |
150.00 |
|
5 |
UIC |
United Insurance Company (Nepal) Limited |
1,028,160,000 |
2,500,000,000 |
1,471,840,000 |
143.15 |
|
6 |
PICL |
Prudential Insurance Company Limited |
1,108,546,600 |
2,500,000,000 |
1,391,453,400 |
125.52 |
|
7 |
SIC |
Sagarmatha Insurance Company Limited |
1,111,357,500 |
2,500,000,000 |
1,388,642,500 |
124.95 |
|
8 |
SIL |
Siddhartha Insurance Limited |
1,120,000,000 |
2,500,000,000 |
1,380,000,000 |
123.21 |
|
9 |
PRIN |
Prabhu Insurance Company Limited |
1,161,902,500 |
2,500,000,000 |
1,338,097,500 |
115.16 |
|
10 |
HGI |
Himalayan General Insurance Company Limited |
1,173,509,100 |
2,500,000,000 |
1,326,490,900 |
113.04 |
|
11 |
EIC |
Everest Insurance Company Limited |
1,183,604,400 |
2,500,000,000 |
1,316,395,600 |
111.22 |
|
12 |
LGIL |
Lumbini General Insurance Limited |
1,198,890,000 |
2,500,000,000 |
1,301,110,000 |
108.53 |
|
13 |
PIC |
Premier Insurance Company (Nepal) Limited |
1,227,684,800 |
2,500,000,000 |
1,272,315,200 |
103.64 |
|
14 |
NICL |
Nepal Insurance Company Limited |
1,242,338,600 |
2,500,000,000 |
1,257,661,400 |
101.23 |
|
15 |
NLG |
NLG Insurance Company Limited |
1,326,614,400 |
2,500,000,000 |
1,173,385,600 |
88.45 |
|
16 |
IGI |
IME General Insurance Limited |
1,620,620,400 |
2,500,000,000 |
879,379,600 |
54.26 |
|
17 |
NIL |
Neco Insurance Company Limited |
1,749,878,800 |
2,500,000,000 |
750,121,200 |
42.87 |
|
18 |
SICL |
Shikhar Insurance Company Limited |
2,286,081,200 |
2,500,000,000 |
213,918,800 |
9.36 |
Capital Structure of Life Insurance Companies
|
S.N. |
Symbol |
Company |
Existing Paid-up Capital (Rs) |
Paid-Up Required (Rs) |
Additional capital needed |
Required Rise (Percent) |
|---|---|---|---|---|---|---|
|
1 |
PLI |
Prabhu Life Insurance Limited |
2,000,000,000 |
5,000,000,000 |
3,000,000,000 |
150.00 |
|
2 |
SLI |
Sanima Life Insurance Company Limited |
2,000,000,000 |
5,000,000,000 |
3,000,000,000 |
150.00 |
|
3 |
GLICL |
Gurans Life Insurance Company Limited |
2,084,250,000 |
5,000,000,000 |
2,915,750,000 |
139.89 |
|
4 |
RLI |
Reliance Life Insurance Limited |
2,100,000,000 |
5,000,000,000 |
2,900,000,000 |
138.10 |
|
5 |
ULI |
Union Life Insurance Company Limited |
2,150,000,000 |
5,000,000,000 |
2,850,000,000 |
132.56 |
|
6 |
JLI |
Jyoti Life Insurance Company Limited |
2,420,000,000 |
5,000,000,000 |
2,580,000,000 |
106.61 |
|
7 |
ALICL |
Asian Life Insurance Company Limited |
2,513,452,400 |
5,000,000,000 |
2,486,547,600 |
98.93 |
|
8 |
SLICL |
Surya Life Insurance Company Limited |
2,550,282,100 |
5,000,000,000 |
2,449,717,900 |
96.06 |
|
9 |
LICN |
Life Insurance Corporation Nepal Limited |
2,653,200,000 |
5,000,000,000 |
2,346,800,000 |
88.45 |
|
10 |
PLIC |
Prime Life Insurance Company Limited |
2,779,615,600 |
5,000,000,000 |
2,220,384,400 |
79.88 |
|
11 |
NLICL |
National Life Insurance Company Limited |
4,035,158,100 |
5,000,000,000 |
964,841,900 |
23.91 |
|
12 |
NLIC |
Nepal Life Insurance Company Limited |
8,207,966,500 |
5,000,000,000 |
Already attained |
Already attained |
