SGI PHILIPPINES General Insurance Co., Inc. reported a P1.35-billion net worth years ahead of the 2022 deadline after its majority shareholder, Shriram General Insurance Co. Ltd., infused P624 million in fresh capital.

In a press release yesterday, Insurance Commissioner Dennis B. Funa said the Indian insurance firm Shriram’s infusion on Dec. 16 pushed nonlife insurer SGI Philippines’ net worth to P1.35 billion from P710 million previously.

Mr. Funa said this makes SGI Philippines compliant with the higher capital requirement ahead of deadline. Existing insurance companies are mandated to comply with a higher requirement of P550-million net worth in 2016, P900 million by end-2019 and at least P1.3 billion by December 2022.

SGI Philippines had said in October last year that it will be able to meet the minimum net worth requirement for 2019.

“The move on the part of SGI Philippines to comply with the last tranche of capital increase under the Amended Insurance Code is commendable as such action gives us the confidence that SGI Philippines has a solid source of capital to deliver its promises to the insuring public,” Mr. Funa was quoted as saying.

Earlier, the Insurance Commission (IC) ordered insurers to submit a capital build-up plan and five-year financial projection for the capital hike requirement.

“We required the companies to submit their respective capital build-up plan for us to see an overview of their respective course of action in order to comply with the law-mandated net worth increase and for us to evaluate their capability to comply with the net worth requirement,” he was quoted as saying.

If submitted early, he said the plan will give the companies time to explore their options to comply, such as cash infusion, by entering into merger, consolidation or acquisition.

The IC chief had said that based on preliminary and individual reports from firms, “majority” of nonlife companies are still in the process of complying with the higher solvency while only “about a couple” are still non-compliant.

He said they will know the exact figures this quarter once companies submit their respective financial statements for 2019. — B.M. Laforga

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