Preparations are underway to bring three new reinsurance companies into operation in Nepal. Preparations are underway to bring Annapurna Re, Prudential Re and another unnamed reinsurance company into operation.

For the first time, Sakar Law Firm of Kathmandu had prepared an action plan of a company called Annapurna Re Company. Annapurna Relay had sent letters to all life and non-life insurance companies offering investment. Vishnubhakta Pokharel, the director of Sakar Law Firm and an advocate, informed me about my investment.

The investment proposal proposes a company with a paid-up capital of Rs 10 billion with 75 percent investment from the founders and 25 percent from the general public.

According to Sakar Law Firm sources, the investment will be made by people including Annapurna Rima Upendra Mahato and his brother Birendra Mahato. The Mahato family has a large investment in the bank. After the bank, Mahato's family has started investing in insurance. Upendra Mahato is the founding president of NRNA while his brother Virendra is a former MP.

Similarly, preparations have been made to launch another new Prudential Reinsurance Company with the investment of Shesh Ghale and others who were former chairmen of NRNA. Ghale and other NRNs will also invest in the company. Similarly, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry Chandra Dhakal and other businessmen including Vishal Group will have investment in the company.

NRN Infrastructure and Development Limited has decided to invest Rs 150 million as a founding shareholder in Prudential Reinsurance.

Another unnamed reinsurance company is also being set up. Sources said that Shahil Agrawal and Ashok Khadka of Shankar Group will invest in it.