May 9, 2023 | Investopaper
IME General Insurance Limited (IGI) and Prudential Insurance Company Limited (PICL) have successfully merged with each other. After the merger, the joint transaction will commence from Baisakh 27, 2080 BS. The name of the company after the merger will remain as ‘IGI Prudential Insurance Company Limited’.
The two non-life insurance companies have already inked the final agreement for merger. Earlier, both the companies had signed a preliminary agreement (MOU) for merger on Magh 27, 2079 BS.
Nepal Insurance Authority had granted the approval for merger on Chaitra 26, 2079 BS.
Both the companies had already approved the merger from their respective Special General Meeting (SGM) held on Chaitra 22, 2079 BS.
As per the direction of Nepal Insurance Authority, the regulatory body, the non-life insurance companies are required to meet the minimum capital of Rs. 250 crores by the end of Ashad, 2080 BS. Hence, these two life insurance companies have opted for merger in order to reach the capital requirement.
Due to merger agreement, the trading of shares of basic shareholders of these two companies has remained halted in Nepse.
As of Chaitra’s end 2079 BS, IME General Insurance has a paid-up capital of Rs. 180.37 crores while Prudential Insurance has a paid-up capital of Rs. 122.55 crores.
The companies have merged in the share-swap ratio of 1:1.
Hemraj Dhakal, current chairman of IME General Insurance, will remain as the chairman of ‘IGI Prudential Insurance Company Limited’. Likewise, Yogesh Bhakta Bade Shrestha, the current CEO of IME General Insurance, will become the Chief Executive Officer (CEO) of the company.
Previously, Sagarmatha Insurance and Lumbini General Insurance, Siddhartha Insurance and Premier Insurance, Himalayan General Insurance Company Limited and Everest Insurance Company Limited, Sanima General Insurance and General Insurance have successfully completed merger and commenced joint operation.