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SEBON Greenlights Himalayan Reinsurance and Nepal Reinsurance Company to Raise Massive 20 Billion Capital

The Insurance Regulatory Authority of Nepal recently made a decision to boost the authorized capital of Nepal Reinsurance Company. During a meeting held on Wednesday, the executive committee of the authority decided to increase the company’s authorized capital to 20 billion. Rajuraman Paudel, the Executive Director, shared that the reinsurance company has been given a directive to present a plan for this capital increase within the next 15 days.

As of now, both Nepal Reinsurance Company and Himalayan Reinsurance are listed on the Nepal Stock Exchange (NEPSE) as reinsurance companies. The authorized capital of Nepal Reinsurance currently stands at 12 billion 81 crore 35 lakh 43 thousand rupees, whereas Himalayan Reinsurance has an authorized capital of 10 billion rupees.

This decision is a significant move for Nepal Reinsurance Company, as it sets the stage for potential expansion and growth. The executive committee of the Insurance Regulatory Authority is actively overseeing the process, emphasizing the importance of a detailed plan for the capital increment within the specified timeframe.

The NEPSE listing reflects the formal recognition of these companies in the financial market. This move is expected to have an impact on the reinsurance sector, potentially influencing market dynamics. The directive for a capital increment aligns with the regulatory body’s vision for the financial stability and strategic growth of the reinsurance companies.

In the coming days, the focus will be on Nepal Reinsurance Company as it prepares and submits its plan in response to the authority’s directive. This step not only marks a financial development for the company but also underscores the evolving landscape of the insurance sector in Nepal.

 

 

By Ghising

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