Mahalaxmi Life approves merger with Prabhu Life

By A Staff Reporter,Kathmandu, June 11: Mahalaxmi Life Insurance Limited has approved the merger of the company with Prabhu Life Insurance Limited at the share swap ratio of 1:1. 

Fifth Annual General Meeting of the company held the other day approved the proposal to go for the merger with Prabhu Life and create a new life insurance company – Prabhu Mahalaxmi Life Insurance Company Limited. 

The meeting also passed the agreements made for the merger and decision to appoint an auditor to conduct the evaluation of assets and liabilities of the company, said the Chief Executive Officer of the company, Ramesh Kumar Bhattarai. 

Both the companies had decided for the merger in July 2022 to meet the new capital requirement of Rs. 5 billion for a life insurance company set by the Nepal Insurance Authority (NIA). 

The company informed that the merger would be concluded and joint operations would begin by mid-July this year.