United Ajod Insurance Commences Joint Operation; Sets Sight To Be Inclusive in Top 5

United Ajod Insurance has commenced joint operation from Sunday, Jestha 14.

In a special event organized in Kathmandu on Sunday, Chairman of the Nepal Insurance Authority Surya Prasad Silwal handed over the Insurance Operations License to Chairman Ajad Shrestha.

The special event witnessed a beefed presence of high-level dignitaries from Nepal Insurance Authority, Securities Board of Nepal (SEBON), Nepal Stock Exchange (NEPSE), Office of the Company Registrar, CDS and Clearing Limited, different banks and financial institutions and promoter shareholders of both the companies, among others.  

Ajad Shrestha is the former chairman of Ajod Insurance who has been appointed as the new chairman of the company formed after the merger of United and Ajod Insurance.

Following the merger, the paid-up capital of the new company is Rs. 1.90 Arba, while the Reserve and Insurance Fund is Rs. 59.67 crores and Rs. 72.64 crores, respectively.

The merged entity employs 581 staffers and extends services from 100 branches.

Addressing the event, Chairman Silwal emphasized the need to build customer trust towards the companies in the sector. Similarly, Chairman Silwal added that due to unlimited risk and limited capital in the insurance sector, policy to merge the companies was imperative.

Similarly, the newly appointed chairman of United Ajod Insurance Ajad Shrestha claimed that the company will work towards becoming one among top five companies in the sector in Nepal by providing competitive prices, standard services and launching new products.

Chairman of United Insurance Company (Nepal) in his welcome speech at the special event, stated that a need to increase the paid-up capital was felt and in the mean time the regulatory body brought the policy to inflate the paid-up capital and hence the companies decided to merge. He asserted that the new company will provide standard services and work to decrease the net premium for customers.

The companies had agreed to merge at a swap ratio of 82.50:100, implying that the number of shares of AIL shareholders will decrease by 17.5% in the newly merged company.