Industry regulators have approved the sale of the beleaguered National Life Insurance Corporation of the Philippines (NLIC) for £15.57mn.
The country’s Insurance Commission (IC) said 6762 Holdings Corporation emerged as the winning bidder for 1.5 million NLIC common shares as well as its debts, BusinessWorld reported.
Under the agreement signed on May 6, a new company shall be incorporated by 6762 Holdings to be designated as the “Rehabilitated NLIC,” according to the report.
The report added that the new company can use the corporate name “National Life Insurance Company of the Philippines” and should comply with the statutory net worth requirements applicable to existing insurance companies.
According to the regulator, it will closely supervise the new company until it is able to operate normally.
“With the execution of the Sale and Purchase Agreement, we take a major step toward concluding the successful life insurer rehabilitation in the Philippine insurance industry,” Businessworld quoted Insurance Commissioner Emmanuel Dooc as saying.
“The Insurance Commission and parties representing various interests have worked together in an unprecedented way starting from the formulation and several modifications of rehabilitation plan until its implementation. I am satisfied that this transaction will enable us to complete the rehabilitation in a very positive fashion taking into primary consideration the best interest of the NLIC’s policyholders,” he added.
NLIC, a life insurance firm operating for over 80 years, has been twice placed under conservatorship by the IC due to its accumulated losses that eroded its solvency margin.
In 2013, the IC approved salient parts of the rehabilitation proposals submitted by NLIC’s conservator and policyholders.
