The proposed Himalayan reinsurance will get the license. The Insurance Committee had called for a proposal saying that another reinsurance company was needed after conducting a study of the reinsurance market. Following all the four companies, Himalayan Reinsurance will get the license of the reinsurance company.
The Government of Nepal has 44.039 percent investment in the Nepal Reinsurance Company which is currently in operation. Similarly, the share of the public has been 16 percent. Vishal Group has 3 percent and Rastriya Bima Company has 2.7 percent investment. The remaining investment is from the old non-life insurance company.
Five companies had submitted their proposals to the board after the committee called for a secret shillbandi proposal. According to a board source, the proposal study committee submitted a report that Himalayan Reinsurance got high marks while studying the proposals of five companies that submitted proposals to the board.
The study report has been submitted to the board meeting of the committee and has been approved, according to a high-ranking committee source. Further process will move forward after the decision of today's board meeting is minute.
The board meeting has decided to move forward the proposal of Himalayan re-insurance.
Shekhar Golchha, the current president of the Federation of Nepalese Chambers of Commerce and Industry, Bhavani Rana, the outgoing president, Pashupati Murarka, the former president and Shulabh Agrawal of Jagdamba have invested in the company. Sources claim that Deepak Bhatt, brother of Sushil Bhatt, CEO of the Investment Board, has also invested in the company.
The group that founded Union Life Insurance and some new groups had proposed the establishment of Himalayan Reinsurance.
The Insurance Committee had publicly called for a proposal from April 29 to May 16 to issue licenses to only one company. Five companies had applied for the bid. Among the applicants, Himalayan Reinsurance has obtained the license. At present, only Nepal Reinsurance Company is doing reinsurance business in Nepal.
Investors Structure of Himalayan Reinsurance?
Himalayan Reinsurance Company, headed by Shekhar Golchha, president of the Federation of Nepalese Chambers of Commerce and Industry, has proposed to have a paid-up capital of Rs 10 billion. Out of which, it is proposed to have 30 percent through public issue and 70 percent through founder shares.
Sahil and Sulabh Agrawal of Shankar Group have the largest number of shares in the company. According to a source, a group including Sushil Bhatt's brother Deepak Bhatt, who is currently the chief executive officer of the Investment Board, has invested in it. Similarly, the state-owned Rastriya Banijya Bank and the state-owned Nepal Bank will also invest in the founding shareholders.
Former President of Federation of Nepalese Chambers of Commerce and Industry Pashupati Murarka, Former President of Federation of Nepalese Chambers of Commerce and Industry Bhavani Rana, Current President of Confederation of Nepalese Industries Satish Mor of Lucky Group, Rohit Gupta of Lucky Group, K. L. Development of Dugad Group Dugad, m. V. Vivek Dugad of Dugad Group has also invested in it.
What is reinsurance?
Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim. The party that diversifies its insurance portfolio is known as the ceding party.
What is reinsurance example?
Reinsurance is insurance of insurance, where one or more insurance companies agree to indemnify the risk, partially or altogether, for the policy issued by another one or more insurance companies.
What is the role of reinsurance?
Reinsurance companies, or reinsurers, are companies that provide insurance to insurance companies. Reinsurers play a major role for insurance companies as they allow the latter to help transfer risk, reduce capital requirements, and lower claimant payouts
What is the difference between reinsurance and insurance?
Insurance can be simply defined as an act of indemnifying the risk caused to another person. ... While reinsurance is an act when an insurance providing company purchases an insurance policy to protect itself from the risk of loss.
Comments
Post a Comment
Leave suggestions.