The company lodged the application to this effect on Wednesday after American Insurance Group (AIG), the parent company, this week finalized the deal to sell Alico division for $15.5 billion to MetLife. [break]
Alico in Nepal is one of the 50 branches that the New York-based AIG has agreed to hand over to MetLife in a bid to recoup cash for repaying billions of dollars that it got as government bailout during the financial crisis in 2008.
“Alico head office has informed us to take steps for the smooth transfer of ownership. Hence, we lodged an application at the IB, seeking its permission for the disposal of promoters shares to MetLife,” said an official at Alico.
He informed myrepublica.com that the request has been sought especially as the insurance law of Nepal makes regulator´s nod mandatory for finalizing such deals.
Officials at IB stated that they gave received an application from the insurance company on late Wednesday only and hence, are still to process it.
“Since Alico is the global company and we all are aware of the deal AIG signed recently, we will take immediate action on its request,” said IB Spokesperson Shekhar Kumar Aryal.
The ownership transfer means over 300,000 persons, who have bought insurance policy from Alico, will become clients of MetLife.
However, sources at IB indicated that the overall process could take time because the IB would first look into the assets and liabilities of the company and how it is being taken over.
“The first concern of the IB, as an institution that looks after customers´ interest, is how the company taking over Alico will assure its clients and how will it impact bonus return and other pledges made by Alico,” said the source.
The IB follows rigorous process and stringent scrutiny of investors while issuing an operating license to the life insurance company. “The Alico case has for the first time raised question to us; should we change our approach to the company taking over an established insurer?” said the source.
Since MetLife is the largest American insurance company, officials, however, ruled out much debate on the issue. “What we will seek from MetLife, nonetheless, is a guarantee that it will take over liabilities as they exist now,” said the source.
According to agencies, MetLife signed the deal with a sole motive of expanding its presence in Japan and high-growth markets in Europe, the Middle East and Latin America. Alico has been operating in more than 50 countries, whereas MetLife currently offers services in 17 countries.
milan@myrepublica.com
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