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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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'description' => 'If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital.',
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Notice (8): Trying to access array offset on value of type null [APP/View/MagazineArticles/view.ctp, line 55]Code Context //find the group of logged user
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'MagazineArticle' => array(
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'title' => 'Merger Times for NECO and Premier Insurance',
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'content' => '<p>
<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
'status' => true,
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'created' => '2013-07-30 00:00:00',
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'description' => 'If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital.',
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'content' => '<p>
<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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'description' => 'If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital.',
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include - APP/View/MagazineArticles/view.ctp, line 55
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117
Notice (8): Undefined index: summary [APP/View/MagazineArticles/view.ctp, line 62]Code Context<?php
echo $this->Html->meta(array('name' => 'description', 'type' => 'meta', 'content' => $magazineArticle['MagazineArticle']['summary']), null, array('inline' => false));?>
$viewFile = '/var/www/html/newbusinessage.com/app/View/MagazineArticles/view.ctp'
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'content' => '<p>
<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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'description' => 'If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital.',
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include - APP/View/MagazineArticles/view.ctp, line 62
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Notice (8): Undefined index: summary [APP/View/MagazineArticles/view.ctp, line 68]Code Context echo $this->Html->meta(array('property' => 'og:title', 'type' => 'meta', 'content' => $magazineArticle['MagazineArticle']['title']), null, array('inline' => false));?>
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'content' => '<p>
<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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<strong>Sectoral<br />
By Sudharson Thapaliya</strong><br />
<br />
<img alt="neco" src="/userfiles/images/neco.jpg" style="margin: 10px; width: 400px; height: 170px;" /><br />
<br />
<br />
<br />
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.<br />
<br />
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.<br />
<br />
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.<br />
<br />
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.<br />
<br />
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.<br />
<br />
<strong>Why merger?</strong><br />
<br />
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.<br />
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.<br />
<br />
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.<br />
<br />
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.<br />
<br />
<strong>Neco Insurance Company</strong><br />
<br />
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.<br />
<br />
<strong>Premier Insurance</strong><br />
<br />
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.<br />
<br />
<strong>Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
National Life Insurance Company Limited</li>
<li>
Nepal Life Insurance Company Limited</li>
<li>
Life Insurance Corporation (Nepal) Limited</li>
<li>
American Life Insurance Company Limited</li>
<li>
Asian Life Insurance Company Limited</li>
<li>
Gurans Life Insurance Company Limited </li>
<li>
Surya Life Insurance Company Limited</li>
<li>
Prime Life Insurance Company Limited</li>
</ul>
<p>
<br />
<br />
<strong>Non-Life Insurance Companies in Nepal</strong></p>
<ul>
<li>
Non Life Insurance Company</li>
<li>
Nepal Insurance Company Limited</li>
<li>
The Oriental Insurance Company Limited</li>
<li>
National Insurance Company Limited</li>
<li>
Himalayan General Insurance Company Limited</li>
<li>
United Insurance Company (Nepal) Limited</li>
<li>
Premier Insurance Company (Nepal) Limited</li>
<li>
Everest Insurance Company Limited</li>
<li>
Neco Insurance Limited</li>
<li>
Sagarmatha Insurance Company Limited</li>
<li>
Alliance Insurance Company Limited</li>
<li>
NB Insurance Company Limited</li>
<li>
Prudential Insurance Company Limited</li>
<li>
Shikhar Insurance Company Limited</li>
<li>
Lumbini General Insurance Company Limited</li>
<li>
NLG Insurance Company Limited</li>
<li>
Siddartha Insurance Limited<br />
<br />
<br />
</li>
</ul>',
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Merger Times for NECO and Premier Insurance
Sectoral
By Sudharson Thapaliya
If things go as planned, this will be first corporate merger in the history of insurance business in Nepal. Two insurance companies Neco Insurance Limited and Premier Insurance Company Limited are discussing the possibility of merger between them. This is because of Insurance Board’s directive to raise paid up capital. Sources said it will be finalized within the month whether they are merging or not. If things go positively then this will be the first time in insurance history of Nepal.
“Talks are on the way,” informed Sudyumna Prasad Upadhayaya, Chief Executive Officer (CEO) of Primier Insurance Company Limited. “But we have not reached any conclusion, yet.” However he is hopeful of positive outcome. “The final outcome will be seen within a month,” he informed.
This is not the first case of merger talk between insurance companies. About one year ago, Prudential Insurance Company Limited, United Insurance Company Limited and Shikhar Insurance Company Limited had mooted a merger plan, but it was aborted by some unexplained reasons. Similarly, another merger process of Shikhar Insurance Company Limited, Premier Insurance Company Limited and Sagarmatha Insurance Company Limited also did not materialize as it was aborted after major differences erupted and no solution was found.
The regulatory body of insurance companies, Insurance Board (IB) has directed to raise paid up capital by the end of current fiscal year. IB regulation requires non-life insurance companies to increase their paid up capital to Rs 250 million and life insurance companies to Rs 500 million. There are 25 insurance companies in Nepal, however none of them are said to be in a position to meet the paid up capital requirement. IB is now planning to prepare merger guidelines to encourage insurance firms to merge. This encouragement will be in the form of tax exemptions.
But the prospects of merger among the insurance companies are bleak. “This is mostly because of ego problems among promoters,” said an expert, preferring anonymity. He added that technical compatibility is another problem. But once other things settle down the technical problems too will be solved.
Why merger?
Merger simply means the two or more companies becoming to one.If the two or more same type of companies become one there will be less administrative costs which ultimately results in more profits. It also boosts the service quality.
“Merger has many advantages,” said Bhoj Raj Sharma, Chief Executive Officer (CEO) of NECO Insurance.”It helps companies to raise capital, also increase business volume, resources and so on.” He added, manpower pooling is another advantage of merger, which ultimately reduces operating cost.
The major problem of insurance sector in Nepal is that people are not aware of the benefits of insurance. In addition to this, insurance companies have not gained enough trust.
Though there are 25 insurance companies, which is high in a small economy like Nepal, the penetration of the insurance companies is very low. According to some estimates, only about five per cent of the total population is believed to own any kind of insurance policy. The proportion of insurance premium to GDP is less than two percent. About 3500 people are estimated to be employed by insurance sector.
Neco Insurance Company
Neco Insurance was incorporated as a Public Limited Company on 16th December 1994 and started general insurance business on 30th May 1996. Aviation Insurance, Overseas Travel Medical Insurance and Domestic Medical Insurance for resident Nepali are the major portfolios of Neco.
Premier Insurance
Incorporated on 12th may 1994, Premier Insurance Company (Nepal) Limited has four regional offices. The Birgunj office covers southern part of the country, the Narayangadh and Pokhara offices cover the western part while the Biratnagar office covers the eastern region. Besides these the company has sub branches in Birtamod, Janakpur and Butwal.
Life Insurance Companies in Nepal
- National Life Insurance Company Limited
- Nepal Life Insurance Company Limited
- Life Insurance Corporation (Nepal) Limited
- American Life Insurance Company Limited
- Asian Life Insurance Company Limited
- Gurans Life Insurance Company Limited
- Surya Life Insurance Company Limited
- Prime Life Insurance Company Limited
Non-Life Insurance Companies in Nepal
- Non Life Insurance Company
- Nepal Insurance Company Limited
- The Oriental Insurance Company Limited
- National Insurance Company Limited
- Himalayan General Insurance Company Limited
- United Insurance Company (Nepal) Limited
- Premier Insurance Company (Nepal) Limited
- Everest Insurance Company Limited
- Neco Insurance Limited
- Sagarmatha Insurance Company Limited
- Alliance Insurance Company Limited
- NB Insurance Company Limited
- Prudential Insurance Company Limited
- Shikhar Insurance Company Limited
- Lumbini General Insurance Company Limited
- NLG Insurance Company Limited
- Siddartha Insurance Limited
