MANILA, Philippines - The embattled policyholders of the shuttered National Life Insurance Co. (NLIC) are asking the Insurance Commission (IC) to increase their seats in the interim governance board (IG Board) from two to four.
The IC has approved a rehabilitation plan for NLIC and formed the IG Board during the transition period.
The board is composed of seven members appointed by the IC. They are: two policyholders’ representatives, one NLIC representative, one representative from corporate creditors, a board chairman coming from the private sector, and the IC deputy commissioner for financial examination, and IC deputy commissioner for legal.
But policyholders said that they want greater representation in the IG Board since they are the “victims†and that their combined interest at stake was worth P2.08 billion in equity, versus the NLIC stakeholders’ equity worth on P256.9 million.
“We must have the controlling majority number (of seats) in order to protect our P2.08-billion equitized premium deposit fund (PDF). Only when the policyholders are truly in control can they safeguard the interest and finally address lurking unresolved issue,†they said.
Tasked to comment on the request of the policyholders, IC officials said that they find justification in the demand. “We will take it up in the next meeting,†IC conservatorship, receivership and liquidation head John Apatan, said.
Meanwhile, IC-appointed conservator for NLIC, Ermilando D. Napa, said that three parties have expressed interest in “taking a look†at the suspended life insurer.
Napa said that two parties represents two distinct banks while the other represents a non-bank financial institution. He refused to further explain while they were still in talks.
“We have up to the month of May to find an investor for NLIC,†he said. Failure to acquire a strategic investor may lead to the liquidation of the insurer.
Under the rehabilitation plan, the policies and PDF holders would be converted into equity into NLIC. But the “equitization†can only be undertaken after a strategic investor has been engaged.
Since NLIC was placed under receivership, several parties including BDO Unibank Inc. and the Philippine American Life and General Insurance Co. (Philam Life), had looked at the offer.
But all withdrew interest before undertaking any full-scale due diligence on NLIC.
National Life Insurance has been placed under a state of conservatorship since 2008, after chronic margin of solvency deficiencies since 2006.