Fri, Sep 8, 2017 6:00 AM
Insurance Board of Nepal has directed to increase the capital of all life and non-life insurance company. As per the new rules introduced by the board, life insurance companies should hike their capital to Rs 2 arba where non-life insurance companies should hike its capital to Rs 1 arba till the end of Ashad 2075. Existing companies can hike their capital by distributing bonus and issuing right shares to its shareholders. Either merger or acquisitions may be the option for capital increment. Most of the insurance companies have submitted their capital plans to the board and those who have not submitted capital plan are given additional time for submission.ALICL,
ALICL, GLICL and PICL are seeking approval from Securities Board of Nepal (SEBON) to issue right shares to its shareholders whereas right shares of HGI, LGIL and NBIL are yet to be listed in Nepal Stock Exchange (NEPSE) for trading.
Below table shows the capital plan with percentage and amount of bonus and right shares of 8 life insurance companies (marked in red) and 15 non-life insurance companies (marked in green).