June 21: The Himalayan Reinsurance Company, which has received approval in principle for the establishment of the company, is making necessary preparation to start its operation from July 1. The insurance company had received approval in principle from the Insurance Board for the establishment of the company in the first week of June. The founders are preparing to operate the company within July after completing all the necessary processes.
After receiving the approval, the Himalayan Reinsuirance Company has been registered with the Company Registrar's Office. In addition, equity investment (Rs. 7 billion) has also been raised for institutional investment.
The office of the company has been established in Baluwatar. Shekhar Golchha has been appointed as the chairman of the company. Entrepreneur Pashupati Murarka, one of the founding investors, said that an application has already been submitted to the Insurance Board seeking permission to operate the company.
“We have already submitted application to the Insurance Board for the final approval. The process is almost complete,” Muraraka said, adding, “Overall, we are preparing to bring the company into operation from July 1.”
Murarka is confident that the final approval to operate the company will be received from the Insurance Board within a week.
Executive Director of the Insurance Board Rajuraman Poudel also said that preparations are underway to give final approval to Himalayan Reinsurance Company.
"Once the approval in principle is given, there is no problem in giving final approval. We have received information that the company has raised capital,” said Poudel, adding, “We will give the final approval to the company soon."
The paid-up capital of this privately owned company is Rs 10 billion. Institutional investment is Rs 7 billion. The remaining Rs 3 billion will be raised through IPOs, Murarka said.
The main share investor of the company is Jagdamba (Shankar) Group. Likewise, the outgoing president of the Federation of Nepalese Chambers of Commerce and Industry Bhawani Rana, current president Shekhar Golchha, former president of the federation Pashupati Murarka, businessman Shahil Agrawal and other individuals and various business houses will have their stakes in the reinsurance company. The Board said that Lucky Group, Dugad Group, and other business houses have also invested in the Himalaya Reinsurance Company.
Currently, the state-owned Nepal Reinsurance Company is the only reinsurance company operating in Nepal. A study committee formed by the Insurance Board had also shown the need for an additional reinsurance company. The Board then proceeded with the process of establishing a new reinsurance company owned by the private sector. Five companies had applied for establishing the proposed reinsurance company. Out of them, the Insurance Board decided to give approval in principle to Himalayan Reinsurance. Other companies that had filed applications were Kathmandu Reinsurance Company, Annapurna Reinsurance Company, Prudential Reinsurance Company and Genuine Reinsurance Company. According to the Board, the Himalayan Reinsurance received the approval in principle as it met the evaluation requirements based on the prescribed criteria.