IC clears Generali of capital requirement violations

The Insurance Commission has cleared Generali Pilipinas of violations to the government's capitalization guidelines, saying the insurance provider has already complied with requirements set by the commission. In a statement released on Monday, IC chief Evangeline Escobillo said both Generali Pilipinas Life Assurance Co. Inc. and Generali Pilipinas Insurance Co. Inc. have completed their documentation requirements and have complied with the new capitalization guidelines after the commission admitted their funds deposited in escrow. “The Insurance Commission admitted the companies’ funds in escrow, which, together with the additional capital infusion made by the stockholders, raise both insurers’ respective net worth to over P300 Million," Escobillo said. She said both companies have a net worth of more than P200 million each, above what is required under Department Order No. 27-2006 issued by Finance Secretary Margarito Teves last year. Under the order, Filipino-owned life and non-life insurance companies would have to increase their minimum paid-up capital from P50 million and a minimum statutory net worth of P100 million last year to P250 million and net worth of P500 million by 2011. “As such, there are no impediments for the release of their certificates of authority for license year 2007-2008," Escobillo said. Also under the order, firms with 40 percent or less foreign equity would have to increase their paid up capital from P100 million to P300 million by 2010 and their net worth from P200 million to P600 million while those with more than 40 percent but less than 60 percent equity must raise their capital from P150 million to P350 million and their net worth from P300 million to P700 million. On the other hand, insurance companies with at least 60 percent foreign equity would have to increase their paid-up capital from P250 million this year to P500 million by 2010 and their net worth from P500 million to P1 billion. Escobillo revealed last May that Generali Pilipinas was among the 15 companies that failed to meet the government required capital and net worth. However, Generali Pilipinas immediately argued that it has already made capital infusions amounting to P1.9 billion last year and early this year and is just awaiting the approval of the Bangko Sentral ng Pilipinas (BSP) for the release the funds held in escrow. Both life and non-life insurance provider is controlled by Generali Pilipinas Holding Co. Inc. The group is a joint venture between Assisurazioni Generali of Italy , Jerneh Berhad Asia, and Banco de Oro universal bank of retail magnate Henry Sy. - GMANews.TV