Kathmandu. Union Life Insurance and Gurans Life Insurance Company have merged into Prime Life Insurance Company. A tripartite agreement was reached on Thursday to merge with Prime Life Insurance Company. This is the second merger agreement for the insurance sector and the first for the life insurance sector. Earlier, non-life insurance companies Everest Insurance and Himalayan General Insurance had entered into a merger agreement.

Even if the union and Gurans Life Insurance merge into Prime Life Insurance, it will become the largest insurance company in the country. Prime Life now has a paid up capital of Rs 2.78 billion, Gurans Life has a paid up capital of Rs 2.84 billion and Union Life has a paid up capital of Rs 2.15 billion.

The share swap ratio will be decided only after the DDA report. The Insurance Committee has directed to increase the paid up capital of life insurance companies from Rs 2 billion to Rs 5 billion. For non-life insurance companies, Rs 2.5 billion has been earmarked. Other insurance companies are now looking for a partner for the merger after the committee directed to increase the capital by giving a period of one year.