Final Merger Procedure Between Sagarmatha Lumbini Insurance Completed; Integrated Transaction to Start from Falgun 29

The integrated transaction of Sagarmatha Lumbini Insurance Company Limited will take place on Falgun 29, 2079, according to the Joint Merger Committee.

Nepal Insurance Authority granted final permission for the merger of Lumbini General Insurance Limited (LGIL) and Sagarmatha Insurance Company Limited (SIC) on Falgun 16 and the Securities Board granted it on Falgun 23, 2079.

The share exchange ratio (also known as the "Swap Ratio") between Sagarmatha Insurance Company Ltd. and Lumbini General Insurance Company Ltd has been maintained at 100:80 in accordance with the initial agreement between the two companies and the DDA Report.

As per the agreement, the board of directors will consist of 3/3 of the members from each company and one independent director. One member from Lumbini General Insurance Company Ltd. will serve as board chairman, and the chief executive officer will be presented on behalf of Sagarmatha Insurance Company Ltd. Hence, Manohar Das Mool of Lumbini General Insurance will be the chairman and Chunky Chhetry of Sagarmatha Insurance will hold the responsibility of Chief Executive Officer.

Since the Insurance Regulatory Committee issued a directive to increase the capital within a year, many insurance companies have merged this year. The committee has set a minimum capital of Rs 2.5 Arba for non-life insurance companies. Further stating that this limit should be reached by Chaitra 2079.

Following the merger of LGIL and SIC, the joint paid-up capital of the company will be Rs. 2.62 Arba after adjustment and distribution of the proposed bonus shares for the Fiscal Year 2078–2079. For FY 78/79, SIC proposed to distribute 12.40% bonus shares and 0.6526% cash dividend, whereas LGIL proposed 6.99% bonus shares and 0.3679% cash dividend.

Also, earlier 6 non-life insurance companies have merged and started joint transaction to become 3.