Nepal:New reinsurer receives licence

Himalayan Reinsurance has received an operating licence from the Insurance Regulatory Authority (IRA), following which it will become the second reinsurance company to operate in Nepal.

Among five companies—Prudential Reinsurance, Kathmandu Reinsurance, Annapurna Reinsurance, Himalayan Reinsurance and Genuine Reinsurance—that had submitted applications for a licence to the IRA, Himalayan is the only company to be granted the licence, reported The Himalayan quoting an IRA official.

The regulator published a notice on 3 April inviting licensing applications from those willing to establish a reinsurance company. Earlier, it had stipulated that any company with a paid-up capital of NPR10bn ($86m) is eligible to be licensed as a reinsurer.

The president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha, is the president of Himalayan Reinsurance. The promoters of the company are a group of well-known businessmen and business houses in Nepal.

Promoters of the Himalayan Reinsurance will own up to 70% of the shares in the company while the remaining 30% has been proposed for subscription by the general public in an initial public offering.

Currently, Nepal Reinsurance which was established by the government in November 2014 is the sole operational reinsurer in Nepal.

Source: Asia insurance review