Himalayan General and Everest Insurance Company Completes Merger Process In 72 Days, Starts Integrated Transactions From Today

Himalayan General Insurance (HGI) and Everest Insurance (EIC) have started an integrated business.

After merging with each other, the two companies have started integrated business today (1st Shrawan, 2079). The business started under the name of Himalayan Everest Insurance Limited.

The company aims to make insurance accessible to everyone in the future. The chief executive officer of the company, Vijay Bahadur Shah, said that now access to insurance will not be limited to the privileged class. He said that it will be studied how to make insurance accessible to all areas.

Each of these businesses ran for around three decades. Everest began operations with 18 staff, followed by Himalayan General with 16. Currently, there are 226 Himalayan branches, and there are 218 branches on Everest Insurance.

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 institutions.

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.

The capital of these companies will reach Rs 2.24 Arba. Before the merger, the paid-up capital of Himalayan General was Rs 1.17 Arba and that of Everest Insurance was Rs 1.25 Arba.