Apr Thu 2023 12:49:52
Kathmandu. IME General Insurance and Prudential Insurance merged to become the largest non-life insurance company. The merger of the two companies meant that IGI Prudential Insurance became the largest in terms of paid-up capital.
After the merger, the paid-up capital of IGI Prudential has reached 3.2 billion rupees. With the agreement to merge the two companies on equal status, that is, the swap ratio is equal to one, the capital of the company has increased to more than 3 billion. Which is more than Siddharth Premier who has the highest capital in life insurance sector. Currently, the company's paid-up capital is 2.8 billion rupees.
The agreement regarding the merger of the two companies has been finalized. The special general meeting of IME General Insurance held in Kathmandu on March 22 passed the final merger agreement between the two companies. In the meeting, IME General Chairman Hemraj Dhakal said that the merger of the two companies was done in view of the directives received from the current insurance market and insurance regulatory body regarding paid-up capital.
The company informed the meeting about the current situation of the non-life insurance market and the strategy that the company will play in the future. President Dhakal said that the company formed after the merger of 2 best business houses in Nepal, IME Group and Vishal Group, will achieve excellent business in the future and provide reasonable returns to the shareholders.
Similarly, the authorized capital of the new company will be 5 billion, paid-up capital 3.2 billion, business about 4 billion, branch network 84 and number of employees 517. In addition, the assembly also informed that it will be easy to expand business based on the risk-based capital that the insurance authority is about to start.
It is said that after the merger of the institution, the capital base will be strengthened, the financial situation of the company will become more orderly, safe, healthy, efficient and competent, and the institution will be successful in developing the non-life insurance sector and protecting the rights and interests of the insured. The company believes that after the merger, human resources with technical and other capabilities, experience and expertise will bring more strength to the organization and by sharing experience, qualitative achievements will be achieved. The goal of the company is to strengthen the financial foundation of the organization and provide reasonable returns to the shareholders, as per the capital structure.