June 1:  
Beema Samiti—the  insurance regulatory authority of the country—has decided to grant approval in principle to Himalayan Reinsurance, allowing the new company to start a process to get the operation license for providing reinsurance services. 

Raju Raman Paudel, Executive Director at the Beema Samiti, said that the board meeting held recently decided to grant approval in principle to set up a reinsurance company to Himalayan Reinsurance. According to Paudel, a formal letter regarding the decision will be provided to the company within two days.
Five companies had applied for the approval after the Beema Samiti on May 29 called for applications from the private sector to grant approval for the reinsurance company. Kathmandu Reinsurance Company, Annapurna Reinsurance Company, Prudential Reinsurance Company, Himalayan Reinsurance Company and Genuine Reinsurance Company had sought Beema Samiti’s nod to start the process to acquire the operation license. 
Beema Samiti officials say that the board decided to choose Himalayan Re which received the highest marks during the evaluation process.

After receiving the approval from the board, Himalayan Re will have to register itself at the Office of the Company Registrar. The company should come into operation within six months from the date of receiving the approval.

Once the company sets up its infrastructure and office, it should apply for the license with Beema Samiti for the operation license. After carrying out inspection of the infrastructure, Beema Samiti then decides on granting the operation license.
Himalayan Re will have a paid-up capital of Rs 10 billion as required by Beema Samiti. Shekhar Golchha, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Bhawani Rana, the outgoing FNCCI President, former FNCCI President Pashupati Murarka along with other industrialists including Shahil Agrawal and Sulav Agrawal, are said to be major promoters of Himalayan Re. It also has investments from Lucky Group, Dugar Group and Shankar Group. 
Currently, there is only one state-owned Nepal Reinsurance Company that is in operation in Nepal. Beema Samiti had started the process to add one more reinsurer from the private sector in line with a recommendation from its committee formed to study the viability of a new reinsurance company.