April 8, 2021 | Investopaper
Four reinsurance companies, namely Kathmandu Reinsurance, Genuine Reinsurance, Annapurna Reinsurance and Prudential Reinsurance are preparing to come into operation. Some have already applied to the Insurance Board for operating permission, while others are preparing a blueprint.
Kathmandu Reinsurance has registered with the Insurance Board on the initiative of Devendra Pratap Shah (former banker), Ramesh Kumar Bhattarai (CEO of Mahalaxmi Life Insurance) and others. The company has an authorized capital of Rs 20 billion and a paid-up capital of Rs 7 billion.
Similarly, Rabindra Ghimire, an insurance expert, Mr. Karki, former executive director of the Insurance Board, KB Basnet, Mukunda Parajuli and others have registered with the Insurance Board in the name of Genuine Reinsurance. The company with an authorized capital of Rs 20 billion will have a paid up capital of Rs 10 billion. The company has plans to issue 30 percent of its shares to the public. 30 percent of the paid up capital will be raised from institutions 40 percent from the individual promoters. Laxmi Bank, Himalayan Bank, Mega Bank and others have committed to invest in the company.
Prudential Reinsurance Company is preparing to come into operation with the investment of Vishal Group, IME Group and others. The company will also have an authorized capital of Rs 20 billion and a paid-up capital of Rs 10 billion. It is planning to issue 30 percent shares to the general public.
Another reinsurance named Annapurna Reinsurance has the investment from Birendra Mahato, Khaitan Group and Sarda Group. The company has a 15 billion authorized capital and 10 billion paid-up capital. It has yet to register with the Insurance Board. The company plans to raise Rs 2.50 billion capital from the general public and Rs 7.50 billion in capital from promoters.
If these four companies come into operation, there will be five reinsurance companies in total including a currently operating Nepal Reinsurance Company Limited (NRIC).