Non-life player SGI Philippines General Insurance Co. Inc. has already pumped up its capitalization to P1.3 billion ahead of the 2022 deadline for insurers to raise paid-up capital.
In a statement on Monday (Feb. 17), Insurance Commissioner Dennis B. Funa said SGI’s mother company, Shriram General Insurance Co. Ltd, an Indian firm, had “infused fresh capital” of P624 million.
Because of this, SGI’s net worth “surged” from P710 million to P1.35 billion, “thereby making it compliant” with the required paid-up capital hike.
Funa said SGI’s move, in accordance with the Amended Insurance Code, “is commendable” since it would project confidence that the company “has a solid source of capital to deliver its promises to the insuring public.”
The Amended Insurance Code required insurance players to have a minimum net worth of at least P900 million by the end of 2019.
Earlier, Funa said the Insurance Commission would release by April the final list of insurance firms that had complied with the capitalization requirement.
The commission, he said, required the companies to submit capital buildup plans “for us to see an overview of their respective course of action” to comply with the required net worth.
Companies who submit these plans early would have time to “consider other ways to comply with the requirement other than cash infusion.” Some of these are mergers, consolidation or acquisition, Funa said.