Life insurance firm placed under conservatorship

MANILA, Philippines —  The government has placed life insurance firm Philippines International Life Insurance Co. Inc. (PhilInterLife) under conservatorship amid its inability to address requirements mandated by law.

In a notice to the public, Insurance Commission (IC) chief Reynaldo Regalado said that a cease and desist order (CDO) has been issued to PhilInterLife.

The IC said PhilInterLife  is unable to comply with the requirements of the Insurance Code.

As such, the CDO will stop the insurance company from doing business of any kind.

Simultaneously, the insurance firm is being placed under conservatorship, a status that will allow the regulator to be involved in the management until the viability of the firm is restored.

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.

PhilInterLife has been operating as an insurance firm for 68 years.

Based on latest IC data, PhilInterlife ranked second to the last among 31 life insurance firms operating in the country in terms of premium income last year with P5.8 million, down 21 percent from P7.31 million in 2023.

Its net income, however, settled at P29.5 million, placing 24th out of 31 firms that submitted reports to the IC. But this was nearly 30 percent below its 2023 bottomline of P41.1 million.

The firm’s invested assets stood at P1.72 billion with a paid-up capital of P250 million.