Beema Samiti Finally Approves The Merger of Himalayan & Everest Insurance Companies

The merger of Himalayan General Insurance (HGI) and Everest Insurance Company Limited (EIC) has received final approval from the Insurance Committee (Beema Samiti). Last Thursday, the insurance committee handed both businesses its final clearance for the merger.

A memorandum of understanding (MoU) was signed on 22nd Baisakh, 2079 between EIC and HGI regarding the merger between both institutions.

The DDA of the two companies fixed the swap ratio at 85: 100, which means the number of EIC shareholders declined by 15 percent.

Since the Insurance Regulatory Authority Committee issued a directive to increase the capital within a year, EIC and HGI become the first insurance company to sign a merger agreement. The committee has set a minimum capital of Rs 2.5 billion for non-life insurance companies. Further stating that this limit should be reached by Chaitra 2079.

At present, the paid-up capital of Himalayan General is Rs 1.17 Arba and that of Everest Insurance is Rs 1.25 Arba.

Himalayan Everest Insurance Limited will be the name of the new company that is created as a result of the merger, and Baber Mahal, Kathmandu, will be its main head office.