KATHMANDU, Aug 26: The Nepal Insurance Authority (NIA) has permitted eight insurers to issue right shares after the companies failed to raise their paid-up capital in line with the threshold prescribed by the authority.
Of the insurers receiving green signals from the regulator, four each are life insurance companies and non-life insurance companies. Raju Raman Paudel, executive director of the NIA, said the authority has permitted these companies to raise their capital bases.
Among life insurance companies, Sanima Reliance has been permitted to issue 20 percent right shares. Likewise, Surya Jyoti is permitted to issue 10 percent, Prabhu Mahalaxmi 17 percent and Asian Life Insurance is allowed to issue 42 percent right shares.
In the non-life insurance sector, United Ajod is given green signal to float its 32 percent right shares. Neco Insurance and Sanima GIC each are allowed to issue 25 percent, while Himalayan Everest Insurance has been permitted to issue 12 percent right shares.
The authority has made it mandatory for life insurers to increase their paid-up capital to Rs 5 billion from Rs 2 billion. Similarly, non-life insurers have been asked to raise their capital to Rs 2.50 billion from Rs 1 billion.
In April 2022, the NIA, giving a deadline of one year, had directed the insurers to either increase their capital base or go into a merger if they fail to do so. Later on, the regulator extended the period till mid-July 2022/23.