The Insurance Commission (IC) has shut down the operations of five insurers for failing to meet the minimum net worth requirement.
In a statement on Wednesday, March 14, IC said it shut down the operations of five insurance firms, namely First Integrated Bonding & Insurance Co., Inc., Investors Assurance Corporation, Metropolitan Insurance Company, Inc., Plaridel Surety & Insurance Company, and Premier Insurance & Surety Corporation, and were put under conservatorship.
As a consequence, these companies are no longer permitted to write new insurance products. The commission will then appoint a conservator for each of these companies mandated to take charge of the management of the company
and its assets and liabilities.
Insurance Commissioner Dennis B. Funa said the regulatory body ceased the operations of these insurers after they failed to comply with the P550-million minimum net worth requirement set by the agency.
“These companies are not operating on net losses. Based on the respective 2016 annual statements of these companies, all have positive net worth but short of the minimum amount required under the Insurance Code,” Mr. Funa was quoted as saying in the statement.
However, Mr. Funa clarified that the insurers will continue to operate business as usual, including processing and paying claims, except that it cannot sell new insurance policies. — Karl Angelo N. Vidal