Friday, September 22, 2017

Largest Philippine HMO in trouble over capital

The Philippines’ Insurance Commission (IC) has directed the biggest health insurance maintenance organisation and preneed firm in the country, Caritas Health Shield, to raise fresh capital on the heels of allegations by former executives that the company has a deficiency of as much as P7 billion (US$136 million) in its actuarial reserves.

The regulator, however, has branded the issue as an “intracorporate dispute”.

In December last year, former president Teodoro Jumamil was ejected by the Caritas board after he had been in a dispute with the firm’s shareholders regarding finance matters.

Jumamil said he was caught off guard by the financial condition of the company when he took the reins, despite strong sales performance at the time.

Caritas has 600,000 policyholders nationwide.

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