Transactions of Union Life, Gurans Life and Prime Life Insurance Finally Released After 8.5 Months

Nepal Stock Exchange (NEPSE) has issued a circular stating that the trading of securities for three life insurance companies, Union Life Insurance Co Ltd (ULI), Gurans Life Insurance Co Ltd (GLICL), and Prime Life Insurance Co Ltd (PLIC) has opened to the general public, except for Basic shareholders.

The companies signed the merger agreement aimed at strengthening the company's capital base. This is the first merger in the country's life insurance sector. The 1:1:1 share ratio of ULI, GLICL, and PLIC has been maintained.

Due to the merger agreement of the three companies, the trading of securities of all three companies had been halted by the Nepal Stock Exchange (NEPSE) on May 12, 2022. After 8.5 months, the shares trading of these companies will finally resume from tomorrow. 

ULI and PLIC declared 8.97% and 13.6842% dividends for the FY 2077/2078, whereas GLICL declared dividend of 7.4425% for the Fiscal Year 2076/2077. The book closure dates of the dividends for all three companies has also already elapsed. Hence, the paid-up capital after the bonus adjustment of ULI is Rs. 2.34 Arba, PLIC’s paid-up capital is Rs. 3.14 Arba and the same of GLICL is Rs. 2.23 Arba.  

The last trading price of the companies after the bonus adjustment is Rs. 478.11 (ULI), Rs. 503.54 (PLICL) and Rs. 451.40 (GLICL), respectively.

After the merger, the company will have a paid-up capital of Rs 7.71 Arba, making it the second largest life insurance company after Nepal Life Insurance Company Limited. Additionally, it has been agreed that the merged company's name following the merger will be Himalayan Life Insurance Limited.

Earlier, the Insurance Authority the regulatory body of the insurance companies instructed all the life and non-life insurance companies to raise their minimum paid-up capital to Rs 5 Arba and Rs 2.5 Arba by end of Chaitra 2079.