MANILA, Philippines - Solid Guaranty, a non-life insurance company controlled by the Madrigal Group, has embarked on an expansion program highlighted by a capital build-up and a management reorganization.
The stockholders, which include the Olondriz family, approved recently an increase in the company’s authorized capital to P350 million from P75 million. The Madrigal Group has subscribed to P156 million to increase paid up capital to P206 million. Another P150 million is planned to be infused in 2010-2011.
The capital build up exercise is in line with the mandate of the Insurance Commission for insurance companies to beef up paid up capital levels to remain competitive with their ASEAN counterparts.
The company has appointed a new professional and competent management team to reinvigorate and expand operations. Heading the new management team as CEO is veteran banker and insurance practitioner Jose B. Zuñiga who is widely credited for having steered PNB General Insurers to be one of the largest and most profitable non-life insurers during his eight-year incumbency as president.
Zuñiga has assembled a formidable group of experienced insurance professionals in Solid Guaranty.
The company has also negotiated large reinsurance capacities backed up by highly reputable, S&P rated “AA” and “A” global reinsurers led by Asia Capital Re, Toa Re, Partner Re, Mitsui Sumitomo, Best Re and a number of Lloyds Syndicates. Its property writing capacity alone is P600 million.
In line with the expansion, the company has moved its corporate offices to Makati City.
“We envision Solid Guaranty to be a key player in the industry in the next few years. With the commitment of our shareholders, the board of directors and support of our re-insurers, we are confident of the full potential of the company,” Zuñiga said.
Solid Guaranty was established in 1964 by the late Don Antonio Madrigal. It offers all lines of non-life insurance products including fire, marine, engineering, personal accident, bonds and other casualty lines.