Govt to purchase rights shares of Nepal Reinsurance Company to help the reinsurer meet capital requirement
Summary
The government will buy rights shares of Nepal Reinsurance Company to help the state-backed reinsurer meet the Nepal Insurance Authority’s minimum paid-up capital requirement of Rs 20 billion. The Cabinet has authorized the Finance Ministry to proceed, removing uncertainty around the company’s capital expansion plan.
Key Points
- The Cabinet has authorized the Ministry of Finance to subscribe to rights shares of Nepal Reinsurance Company (NRIC).
- The move will help NRIC meet the Nepal Insurance Authority’s minimum paid-up capital requirement of Rs 20 billion.
- NRIC currently has paid-up capital of Rs 13.42 billion and plans to raise the remaining amount through a rights issue.
- The government is NRIC’s largest shareholder with a 44.04 percent stake.
