Kathmandu. Surya Life Insurance Company and Jyoti Life Insurance Company are going to merge with each other. The two companies are set to merge after holding a program at Hotel Yak & Yeti on Sunday and signing a merger agreement. The agreement has been signed by the chairman of the board of directors of both the companies.

At present, Surya Life Insurance has a paid up capital of Rs 2.55 billion and Jyoti Life Insurance has a paid up capital of Rs 2.42 billion. If there is a swap ratio agreement between these two companies in the ratio of 1 to 1, the paid up capital of the new company will reach around Rs 5 billion. According to Pawan Khadka, CEO of Surya Life Insurance, a preliminary merger agreement has been signed between the two companies.

The insurance company has stated that it will submit an application to the insurance committee for an agreement in principle regarding the merger and as soon as the agreement letter is received from the insurance committee, DDA and other merger related works will be expedited.

The regulatory body will increase the paid-up capital within the time limit required to increase the capital as directed by the Insurance Committee, reduce the number of insurers as per the target of the Insurance Committee, strengthen the capital base and conduct business in a healthy competitive environment. In addition, both companies believe that the merger will help increase the supervisory capacity of the regulatory body and will benefit all stakeholders, including shareholders, insurers, agents and employees.