May 8, 2023 | Investopaper
Gurans Life Insurance Company Limited (GLICL), Prime Life Insurance Company Limited (PLIC), and Union Life Insurance Company Limited (ULI) have successfully merged with each other. The joint transaction after merger will begin from Baisakh 26, 2080 BS.
These three companies have already signed a final agreement for merger on Magh 1, 2079 BS.
Earlier, a preliminary agreement (MOU) for merger was inked between these companies on Baisakh 29, 2079 BS.
After the merger, the company will operate in the name of ‘Himalayan Life Insurance Limited’. The paid-up capital will reach Rs. 7.72 Arba.
Shulav Agrawal, current chairman of Union Life Insurance will be the chairman of the company after merger. Likewise, Manoj Kumar Lal Karna, current chief executive of Union Life Insurance, will lead the company as its CEO.
As per the direction of Nepal Insurance Authority, the regulatory body, the life insurance companies are required to meet the minimum capital of Rs. 500 crores by the end of Chaitra, 2079 BS. Hence, these three life insurance companies have opted for merger in order to reach the capital requirement.
After the due diligence audit (DDA), the companies have agreed to merger in the swap ratio of 1:1:1.
As of Poush’s end 2079 BS, Gurans Life Insurance had a paid-up capital of Rs. 223.93 crores while Prime Life Insurance and Union Life Insurance have a paid-up capital of Rs. 314.09 crores and Rs. 215 crores (Rs. 233.59 crores after the adjustment of the proposed 8.65 percent bonus share).