Due To The Merger Process Trading of Securities For Union, Gurans and Prime Life Insurance Company Is Halted

On Thursday, May 13, three life insurance companies, Union Life Insurance Co Ltd (ULI), Gurans Life Insurance Co Ltd (GLICL), and Prime Life Insurance Co Ltd (PLIC), signed a merger agreement aimed at strengthening the company's capital base. This will be the first merger in the country's life insurance sector.

Due to the merger agreement of the three companies, the business operations of all three companies have stagnated. The Nepal Stock Exchange (NEPSE) is blocking the trading of shares in these companies.

After the merger, the company will have a paid-up capital of Rs 7.01 billion, making it the largest life insurance company in Nepal.

Prior to this, Everest Insurance Company (EIC) and Himalayan Insurance Company (HGI) agreed to merge after the Insurance Regulatory Commission issued a directive to increase the capital of all insurance businesses within a year.

Earlier, Beema Samiti the regulatory body of the insurance companies have instructed all the life and non life insurance companies to raise their minimum paid up capital to Rs 5 billion and Rs 2.5 billion within end of Chaitra 2079.