Top 10 Insurance companies Right and and bonuses shares in Nepal

Oct Wed 2024 02:11:39

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Top 10 Insurance companies Right and and bonuses shares in Nepal

Kathmandu: The Insurance Authority has arranged that the paid-up capital of life insurance companies should be increased to 5 billion and the capital of non-life companies to 2.5 billion. Along with this arrangement, some insurance companies went into mergers in a hurry, while others took alternative paths. However, insurance companies had to raise capital. Along with this, the insurance authority has become more and more flexible regarding capital increase.

Accordingly, the authority removed the hurdle so that reserves and fixed provisions can also be counted in the paid-up capital. This made it easier for the insurance company to increase its capital. However, a total of 14 companies including 7 life and 7 non-life insurance companies listed in NEPSE have still not been able to maintain the capital determined by the insurance authority.

How much Top 7 insurance companies Paid-up capital ?
The paid-up capital of 7 life insurance companies listed in NEPSE is still less than 5 billion rupees determined by the insurance authority. However, these companies are preparing to provide the capital determined by the insurance authority. Currently, the paid-up capital of Reliable Nepal Life is 4.64 billion rupees. This company needs an additional 36 million rupees to meet the capital determined by the insurance authority.

This company is preparing to provide the required amount through bonus shares. Reliable Nepal has to distribute about 8 percent bonus shares to the investors to pay off. Similarly, 70 million 40 million rupees are required to reach 5 billion capital of Prabhu Mahalakshmi Life. It has announced to give 10 percent bonus shares from the current capital. After the bonus distribution, this company has prepared to issue 7 percent rights to meet the insufficient capital.

Sanima Reliance Life Insurance has announced the distribution of 18.3811 percent bonus shares of the current paid-up capital of 4.18 billion rupees. In addition, Sun Nepal Life has applied to the board for the issuance of 27 percent rightful shares. After the issuance of the rightful shares, the paid-up capital of this company will be reached. Citizen Life Insurance's 5 billion rupees paid-up capital is 1.6 billion 2.5 million rupees insufficient.

The company said that it will raise the capital by issuing about 28 percent of the amount through rights issue and bonus. Similarly, Asian Life has sought approval from the Securities Board for the issuance of 42 percent rights. At present, the paid-up capital of Asian Life is 3 billion 39 million 98 lakh 36 thousand 307 rupees. After the issuance of 42 percent right shares in this capital, the paid-up capital will reach 4 billion 82 crore 77 lakh 67 thousand 555 rupees. The remaining insufficient capital will be provided through bonus shares, the company said.

The paid up capital of Life Insurance Corporation (LIC) Nepal is 2.65 billion 32 million rupees. The Securities Board has approved this company to issue 88 percent rights from the said capital. After the issuance of the rightful shares, the company's paid-up capital will reach 5 billion rupees.

How much Top 7 Non-life insurance companies paid of Capital ?

The paid-up capital of 7 out of 12 non-life insurance companies listed in NEPSE is less than that determined by the Nepal Insurance Authority. United Azod Insurance has sought permission from the Nepal Securities Board for the issuance of 15 percent rights. Currently, its paid-up capital is 2 billion 10 million rupees. After the rights issue, its capital will reach 2 billion 415 million rupees. This company will provide the capital determined by the insurance authority by giving bonus shares of the remaining amount.

Neco Insurance has sought permission from Nepal Securities Board to issue 25 percent right shares. Currently, its paid-up capital is 2 billion 123 million rupees. After the right shares are sold, its paid-up capital will reach over 2.5 billion. The paid up capital of Sanima GIC Insurance is 2 billion rupees. This company has said that it will issue right shares worth 50 million rupees. After issuing the right shares, the capital of this company will reach as determined by the insurance authority.

Nepal Insurance has sought permission from the Nepal Securities Board for the issuance of 40 percent rights. Currently, the paid up capital of this company is 1 billion 64 crore 42 lakh 41 thousand rupees. After the right shares are issued, its paid-up capital will reach 2.3 billion 1.9 million rupees. The remaining capital will be provided through bonus shares.

NLG Insurance has received approval from the Securities Board for the issuance of 62.56 percent equity shares. Currently, the paid up capital of this company is 1 billion 64 crore 42 lakh 41 thousand rupees. Similarly, Prabhu Insurance has sought permission from the board for the issuance of 50 percent rights. The company said that it will provide 2.5 billion paid-up capital through the remaining bonus shares.

The capital increase plan of the National Insurance Company is not yet clear. The company has to add 2 billion 24 million rupees to its paid-up capital. 30 percent of its total capital is owned by the general public. The remaining 41.03 percent is owned by the government, 19.37 percent by Employees' Provident Fund, and 9.60 percent by Nepal Bank.