Non-life insurance firms placed under conservatorship

MANILA, Philippines —  The Insurance Commission (IC) has placed two non-life insurance firms under conservatorship amid their inability to comply with certain rules and regulations mandated by the law.

In separate notices to the public, the IC said The Premier Life and General Assurance Corp. and Travellers Insurance and Surety Corp. (Trisco) are being placed under conservatorship, a status that would allow the regulator to be involved in the management until the viability of the non-life firms are restored.

Both firms were also issued cease and desist orders (CDOs) due to their inability to comply with the requirements of the Insurance Code.

The CDO will stop the insurance companies from doing business of any kind.

Under the law, the IC may put an insurance firm under conservatorship if it finds that it is in a state of continuing inability or unwillingness to comply with its obligations to policyholders.

Established in 1964, Trisco is engaged in business of fire, marine, bonds, casualty insurance, contractor’s all risk, fidelity guarantee, commercial blanket bonds and floater policies among others.

Last year, Trisco reported a net income of P265.2 million while its total assets stood at P4.54 billion.

On the other hand, Premier Life is involved in surety bonds, motor car insurance, engineering, marine, fire, casualty and other accidents.

It disclosed a net income of P162.36 million and assets of P3.9 billion as of end-2023.

Both firms have a paid up capital of P2 billion.

During the first quarter of 2024, the non-life insurance segment’s net income slipped by four percent to P2.52 billion from P2.63 billion following the slight decline in total premiums earned at P15.78 billion.