May 10:  Prime Life, Union Life, and Gurans Life Insurance have started their integrated transaction from Baishakh 26, as the biggest merger in the life insurance sector. 

The three companies have merged and started operations under the name "Himalayan Life Insurance”. These companies had reached an initial agreement for the merger on Baisakh 29, last year, and completed the merger process within a year of the initial agreement.

After the merger, the central office of the company is located at the central office of Prime Life, which is located in Manakamana Marg, Naxal, Kathmandu, according to the latest arrangement. 

According to the latest arrangement made by Insurance Authority of Nepal, the life insurance company has to maintain Rs. 5 billion and the non-life insurance company has to maintain Rs. 2.50 billion in paid-up capital. Following the merger, the paid-up capital of the three companies has reached Rs. 7.72 billion.

Prime Life has proposed to distribute 13 percent bonus shares from the profit of fiscal year 2077/78 BS, which was approved by the annual general meeting held on Poush 24, 2079 BS. After the bonus, Prime Life's paid-up capital has reached Rs. 3.14 billion. 

Similarly, Union Life has proposed to distribute 8.97 percent bonus shares this year, which was approved by the annual general meeting held on Magh 26, 2079. After the bonus, the paid-up capital of the Union Life Insurance has reached NPR 2.34 billion.

Gurans Life Insurance, however, has yet to announce the dividend this year. The paid-up capital of the Gurans Life Insurance is NPR 2.23 billion. 

After the merger, the former chairman of Union Life Insurance, Sulabh Agrawal, has become the chairman of the board of directors of the merged company, and the chief executive officer of Union Life Insurance, Manoj Kumar Lalkarna, has been appointed the Chief Executive Officer of the merged company. 

The former chief executive officer of Gurans Life, Bipin Karn, and the chief executive officer of Prime Life Insurance, Nirmal Dahal, have agreed to become senior deputy chief executives of the merged entity.