Himlayang Pilipino Plans Inc. (HPPI) has been placed under conservatorship due to its insolvency issues and trust fund deficiencies, the Insurance Commission (IC) reported.
The conservatorship comes after HPPI was earlier issued a cease and desist order (CDO) for its “unwillingness to comply” with the instructions to address its issues, even as the IC said the firm was given sufficient time to do so.
Among the issues cited were insolvency amounting to P112.30 million, and trust fund deficiencies equivalent to P184.88 million, based on its 2020 annual statement.
“Prior to the issuance of the CDO, the Commission gave HPPI ample time to comply with these instructions. However, despite extensions granted by the Commission, HPPI still failed to abide by its undertakings,” Insurance Commissioner Dennis Funa said in a statement.
Himlayang Pilipino officials were not immediately available for comment.
Based on its website, HPPI pioneered the Fixed-Value Life Plan upon its incorporation in 1978. It launched its Assured College Education Plan (ACE) in 1992, and has since launched the Solid Pension Plan.
“In the tradition of commitment and service, our pre-need plans focused on helping our plan holders gain a more secured future not only for themselves but most especially for their families,” it said.
Under Section 49 of the Pre-Need Code of the Philippines, the IC is granted the power to place a firm under conservatorship should it be found to be in a “state of continuing inability or unwillingness to comply” with the requirements.
According to the IC, Himlayang Pilipino requested a number of regulatory reliefs after it was notified of its 2020 annual statement, such as seeking authority to venture into high-yielding investment portfolios.
The IC said HPPI also sought the suspension of the directive to fund deficiencies and the withdrawal of the excess of the trust funds for both education and pension plans.
The requests were rejected due to “various legal considerations,” which were the basis for the cease and desist order and the later conservatorship.
“Bearing in mind that the pre-need business is imbued with public interest, it is this Commission’s mandate to safeguard of the rights and interests of the public while, at the same time, ensure the financial resilience of the business,” Funa said.
“By placing HPPI under conservatorship, we aim to restore the company to financial viability with the ultimate objective of protecting the interest of its planholders,” he added. — VBL, GMA News
Insurance Commission places Himlayang Pilipino Plans under conservatorship
Source: News Panda Philippines
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