First Business News Portal in English from Nepal
KATHMANDU: Five companies have applied at the Insurance Board seeking permission to operate reinsurance companies.
Rajuraman Poudel, executive director board, informed that five companies have been registered within the time specified by the board. The insurance regulatory body had published a public notice on April 3 seeking application from those willing to establish a reinsurance company.
According to the board, Prudential Reinsurance, Kathmandu Reinsurance, Annapurna Reinsurance, Himalayan Reinsurance and Genuine Reinsurance companies have sought operating permission. The board has stipulated that the paid-up capital should be at least Rs 10 billion for the establishment of a reinsurance company.
All the companies have applied to the committee with the minimum paid-up capital. For example, Kathmandu Reinsurance Company has raised Rs 8.80 billion on behalf of the founders. The capital will be 70 percent of the company’s total paid-up capital and the remaining 30 percent will be more than Rs 10 billion when the IPO is issued to the public.
The board said that as all the applications received so far have been sealed, it has not been disclosed which business groups or individuals have applied for reinsurance. The board has informed that the board of directors will open the application soon and conduct a necessary study and allow a company to operate.
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