Proposed merger between two Nepalese insurance companies

Two Nepalese insurers, Himalayan General Insurance Company (HGI) and Everest Insurance Company (EIC), have signed a memorandum of understanding (MoU) for a possible merger.

The merged entity will have a paid-up capital of 2.42 billion NPR (19.31 million USD).

This comes after the introduction of new minimum capital requirements by local authorities. The latter has been set at 2.5 billion NPR (19.95 million USD) for non-life companies as against 1 billion NPR (7.98 million USD) previously. Local insurers have until the end of April 2023 to comply with the new regulations.

The Nepalese market currently includes 20 non-life companies, 19 life companies and two reinsurers.