Emmanuel Ticzon, who served as president of Nicphil for 10 years and is currently the single biggest shareholder of Nicphil owning 37 percent, said the liquidity problems of the insurance firm could be traced to the board’s mismanagement and poor collection of premiums.
Ticzon pointed out that Nicphil has been posting consistent revenue growth since his entry into the company in 1994 and up to 2004. He said the company was even ranked as one of the top 35 direct non-life insurers in the country in 2003.
Ticzon was terminated by the Nicphil board in April 2005 on allegations he pocketed corporate funds.
An audit report submitted by Nicphil chairman Jesus Nacinto Jr. and treasurer Roberto Jose Castillo showed that the insurance firm’s cashflow problems resulted from significant payments made to and for the expenses of Ticzon.
Because of liquidity problems, Nicphil has been unable to pay salaries on time and has accumulated significant arrears on payment of utilities, rent, and SSS premiums.
The Insurance Commission had formed a task force to look into the problems of Nicphil, which voluntarily suspended operations in July.
Ticzon said this move caused further irreversible damage to the company with massive requests for cancellation of paid policies from agents and large-sized intermediary brokers, demand of cash collateral returns from agents, and demands for immediate release of contingent profit commissions.
Ticzon noted that he offered to purchase the remaining shares of the company at P144 per share to save the company but was deemed too low by the Nicphil board. He said the offer price was slightly higher than the estimated book value of the company as of end-December 2004. Shareholders of Nicphil demanded P175 per share.
Recently, Nicphil assistant corporate secretary lawyer Miguel Robillo of the Castillo Laman Law Office pushed for the dissolution of the company during a recent special shareholders’ meeting.
However, Nicphil shareholders and their proxies fell short of the 67-percent required votes to dissolve the company.