Nepal Reinsurance to Issue 100% Right Shares to Meet Regulatory Capital Requirement

Kathmandu — Nepal Reinsurance Company Limited has announced its decision to issue 100 percent right shares to meet the paid-up capital threshold set by the Nepal Insurance Authority (NIA). The move comes as part of the company’s strategy to comply with regulatory requirements and to strengthen its position in both domestic and international markets.

The decision was endorsed during a meeting of the company’s board of directors held on Wednesday. The company’s current paid-up capital stands at Rs. 13.42 billion, while the Insurance Authority has mandated that it must be increased to at least Rs. 26 billion by mid-Magh 2082.

According to Nepal Re, a special proposal regarding the issuance of right shares will be presented at the upcoming general meeting after securing approval from the Ministry of Finance. The company clarified that the proposal will be submitted in accordance with Section 56(1) and Section 83(a) of the Companies Act, 2063.

If approved, the right share issuance will double the current paid-up capital, enabling the company to meet statutory requirements and improve underwriting capacity, particularly in the reinsurance segment.