June 2: Life Insurance Companies have raised 31 percent paid-up capital in the current FY compared to the last FY following the raise in minimum paid-up capital requirement of Rs 2 billion by the Insurance Board (IB). By the third quarter of the current FY, the combined paid-up capital of eight life insurance companies has increased to Rs 7.96 billion. Out of the eight companies, while five companies have increased their paid-up capital, three companies have shown zero increase. The companies whose paid-up capital stands still are National Life, Prime Life and Rastriya Beema Sansthan.

According to Prime Life, it failed to increase the paid-up capital due to postponing of its general meeting since the last four year. Prime Life has not conducted annual general meeting since 2013. The company is planning to move ahead with a capital increment strategic plan by organising annual general meeting, said the company.

Similarly, Rastriya Beema Sansthan is also going through the same circumstances as Prime Life Insurance. As the company has not been able to conduct regular AGMs, it has not been able to increase its capital.

 However, in order to increase paid-up capital, National Life Insurance is set to provide 25 percent bonus share to its shareholders. The company is also offering 75 percent right shares to its existing shareholders to meet the minimum paid-up capital requirement.

Meanwhile, among the companies that have increased the paid-up capital, Nepal Life Insurance has increased the maximum paid-up capital by 78.75 percent. Nepal Life has Rs 3.09 billion paid-up capital surpassing the minimum requirement. The company achieved the cap of paid-up capital before the IB made the announcement. Similarly, the paid-up capital of Life Insurance Corporation and Surya Life Insurance has increased by 25 percent. Likewise, Asian Life has increased its paid-up capital by 20 percent and Gurans Life Insurance has increased its paid-up capital by 10 percent.