Kathmandu. Himalayan General Insurance (HGI) and Everest Insurance (EIC) are about to merge. In an agreement reached between the two insurance companies on Thursday, the chairman of the organization has agreed to merge.

Himalayan and Everest have become the first entities to sign a merger agreement after the non-life insurance companies increased their paid-up capital from Rs 1 billion to Rs 2.5 billion after the Insurance Committee decided to present a plan to increase the paid-up capital of insurance companies. At present, the paid up capital of Himalayan General Insurance is Rs 1.17 billion and that of Everest Insurance is Rs 1.25 billion.

The company has stated that the share ratio will be decided after the due diligence audit (DDA) of the assets and liabilities of the two companies. After the distribution of bonus shares in FY 2078/79, the company will be able to increase the paid up capital after the merger.