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Merger between life insurance companies begins

The Annapurna Express

The Annapurna Express

Merger between life insurance companies begins

Surya Life and Jyoti Life decided to go for a union after Nepal Insurance Authority increased the paid-up capital for life insurance companies to Rs 5 billion and non-life insurance to Rs 2 billion

For the first time in the Nepali life insurance sector, two life insurance companies—Surya Life Insurance and Jyoti Life Insurance—have completed their merger and started integrated business on Thursday. The new entity formed after the merger has been named Suryajyoti Life Insurance Company.

Surya Life and Jyoti Life decided to go for a union after Nepal Insurance Authority increased the paid-up capital for life insurance companies to Rs 5bn and non-life insurance to Rs 2bn. The two companies had signed a memorandum of understanding (MoU) for the merger in the last week of June. Post-merger, Suryajyoti will have paid up capital of Rs 4.54bn.

This is the first merger among the life insurance companies in the country. While other life insurance companies have also signed merger agreements, they are yet to complete the merger process.

There have been two successful mergers in the non-life insurance business. In July, Himalayan General Insurance and Everest Insurance merged to form Himalayan Everest Insurance Insurance Co. Ltd. Similarly, in October, Sanima General Insurance and General Insurance Company merged to form Sanima GIC Insurance Ltd.

 

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