Kathmandu. After the merger of state-owned banking institutions in the banking sector, the central government is preparing to merge non-life insurance companies.
According to a finance ministry report, three state-owned state-owned non-life insurance companies — Oriental Insurance, National Insurance and United India Insurance — are considering a preliminary proposal to merge.
General Insurance Corporation (GIC), another large government-owned company, is providing both non-life insurance and reinsurance services. The company is financially strong compared to other state-owned insurance companies and is a profitable business for the government. Apart from this, Life Insurance Corporation (LIC) is also a profit-making government financial institution.
This step has been taken after the financial performance of these non-life insurance companies improved. The merger is aimed at increasing operational efficiency and expanding the business further. According to a source in the finance ministry, the three insurance companies are currently in the process of merger.
