Life Insurance Firm Placed Under Conservatorship
MANILA, Philippines — The government has placed life insurance firm Philippines International Life Insurance Co. Inc. (PhilInterLife) under conservatorship due to its failure to meet legally mandated requirements.
In an official notice to the public, Insurance Commission (IC) chief Reynaldo Regalado announced the issuance of a cease and desist order (CDO) against PhilInterLife. The IC cited the firm’s inability to comply with the provisions of the Insurance Code as the reason for this action. This CDO prevents the company from conducting any form of business operations.
Simultaneously, the insurance company is now under conservatorship, a status that involves the regulator in its management until it can regain its financial stability. Under existing law, the IC is authorized to place an insurance firm under conservatorship if it finds that the firm is either continuously unable or unwilling to fulfill its obligations to policyholders.
PhilInterLife has been in operation as an insurance provider for 68 years. According to the most recent IC data, PhilInterlife ranked second to last among the 31 life insurance companies active in the country in terms of premium income last year, with P5.8 million, which is a 21 percent decrease from P7.31 million in 2023. However, its net income was P29.5 million, placing it at 24th among the 31 firms that presented reports to the IC. This was nearly 30 percent lower than its 2023 bottom line, which was P41.1 million. The company’s invested assets totaled P1.72 billion, with a paid-up capital of P250 million.
