Himalayan General and Everest Insurance Companies Completes Merger Process, To Start Integrated Transactions From Coming Sunday

Everest Insurance Company Limited (EIC) and Himalayan General Insurance Company Limited (HGI) have been allowed to start integrated transactions in the post-merger name - Himalayan Everest Insurance Limited from coming Sunday, Shrawan 1, 2079.

According to the letter of acceptance received by Himalayan Everest Insurance Limited from binding authorities on Ashad 24, All customers, agents, surveyors, shareholder dignitaries, regulatory bodies and all shareholders of both organizations will be informed about the conduct of integrated transactions of non-life insurance services which shall operate from Sunday.

A memorandum of understanding (MoU) was signed on 22nd Baisakh, 2079 between Everest Insurance Company Limited and Himalayan General Insurance Company Limited regarding the merger between both the institution.

The two non-life insurance companies agreed to become one at the swap ratio of 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 Arba for non-life insurance companies. Further stating that this limit should be reached by Chaitra 2079.

Even after the merger, the capital of these companies will reach only Rs 2.35 Arba. At present, the paid-up capital of Himalayan General is Rs 1.17 Arba and that of Everest Insurance is Rs 1.18 Arba.

OFFICIAL ANNOUNCEMENT