March 27, 2022 | Investopaper
With the new directive issued by the Insurance Board (Beema Samiti), non-life insurance companies have to meet the minimum paid-up capital of Rs 2.50 Arba. At current, there are 20 non-life (general) insurance companies operating in Nepal. Out of the 20 companies, two (National and Oriental) are the branches of foreign insurance companies. Hence, they are not traded in Nepal Stock Exchange (NEPSE).
These companies should increase their capital by the end of Chaitra, 2079 BS. Hence, they have one year time period to raise their capital. They can do so through merger/acquisition, issue of right shares or issue of bonus shares.
Among these insurance companies, Rastriya Beema Company (RBCL) has a lowest paid-up capital of Rs 26.66 crores. Hence, it has to raise the capital by more than 9 times or Rs. 223.34 crores. On the other hand, Shikhar Insurance (SICL) has the highest capital of Rs. 228.60 crores. SICL has to increase its capital by only Rs. 21.40 crores or 10 percent.
You May Also Like:
The table below presents the current paid-up capital of non-life insurance companies and the additional capital they have to inject to meet the requirement set by the regulatory body.
Additional Capital Required For Non-Life Insurance Companies
|S.N||Non-Life Insurance Companies In Nepal||Paid-Up Capital (Rs In Crores)||Minimum Capital Required (Rs In Crores)||Additional Capital To Raise (Rs In Crores)|
|1||Rastriya Beema Company||26.66||250||223.34|
|2||Ajod Insurance Company Limited||100||250||150|
|3||General Insurance Company Limited||100||250||150|
|4||Sanima General Insurance Company Limited||100||250||150|
|5||United Insurance Company Limited||102.81||250||147.19|
|6||Prudential Insurance Company Limited||110.85||250||139.15|
|7||Sagarmatha Insurance Company Limited||111.13||250||138.87|
|8||Siddhartha Insurance Company Limited||112||250||138|
|9||Prabhu Insurance Company Limited||116.19||250||133.81|
|10||Himalayan General Insurance Company Limited||117.35||250||132.65|
|11||Everest Insurance Company Limited||118.36||250||131.64|
|12||Lumbini General Insurance Company Limited||119.88||250||130.12|
|13||Premier Insurance Company Limited||122.76||250||127.24|
|14||Nepal Insurance Company Limited||124.23||250||125.77|
|15||NLG Insurance Company Limited||132.66||250||117.34|
|16||IME General Insurance Company Limited||162.06||250||87.94|
|17||Neco Insurance Company Limited||174.98||250||75.02|
|18||Shikhar Insurance Company Limited||228.6||250||21.4|
|19||National Insurance Company Limited||–||–||–|
|20||Oriental Insurance Company Limited||–||–||–|
More From Investopaper: