All Asia Life gets more time

All Asia Life Assurance Corp. (All Asia Life) got another lease on life as the Insurance Commission (IC) extended to mid-November its decision on the issuance of a license for the insurance firm.

All Asia Life was reportedly able to submit last week documents covering the remaining P123.4-million capital deficiency. Among these documents are proof of ownership of the property in question, an appraiser’s report, proof of non-encumbrances in tax responsibilities, and others.

Earlier, it was able to submit documents for 291 lots at the Golden Haven Memorial Park said to be worth P120 million. All Asia Life was given another extension up to this month to fulfill the remaining deficiency after promising to come out with the remaining balance, within the month.

IC officials said that the November deadline would be the final extension "as we have given them all the consideration allowed by our regulations."

They also took into consideration All Asia Life’s good performance record and that the capital deficiency was due to problems of its mother unit All Asia Capital and Trust Corp. (AACTC).

"It is only this year that they became delinquent," said Insurance Commissioner Eduardo T. Malinis. Last year, All Asia Life registered a premium income of P217 million allowing it to be ranked among the top 20 insurers in the country in 2000.

Since the start of the third quarter of the year, the Insurance Commission had not renewed the license of All Asia Life due to capital deficiency amounting to P243.4 million. The deficiency would impact on the insurer’s ability to pay possible claims by its policy holders.

The capital deficiency resulted from the withdrawal by AACTC of P240 million to meet maturing debts and operational expenses. AACTC has an existing debt of $17 million (roughly P850 million) with the International Finance Corp. (IFC), the private investment arm of the World Bank. Aside from the loan, IFC also controls seven percent of AACTC worth almost $4 million.

All Asia Capital proposed a rehabilitation plan, which involved the infusion of additional capital. AACTC also mortgaged several of its subsidiaries to the IFC but the World Bank investment arm did not want to be involved in other operations outside the holding company.