Policyholders of National Life Insurance Co. will be relieved to know that their insurance company is finally on its way to the hoped-for rehabilitation. The sale of National Life to 6762 Holdings Corp. has just been approved by the Insurance Commission, according to a May 10, 2016 press release from the Insurance Commission. The sale and purchase agreement was signed on May 6, 2016.
The Insurance Commission first put NLIC into conservatorship in August 2008 due to solvency problems, but later, in November 2008, authorized NLIC to operate to enable the company to recover and infuse more capital. In March 2010, the commission put NLIC again into conservatorship. Several changes in conservators and proposals occurred before the IC, NLIC and other stakeholders agreed to sell NLIC to 6762 Holdings.
6762 Holdings Corp. paid 1.054 billion pesos for National Life's stocks and liabilities amounting to 2.648 billion pesos.
6762 Holdings Corp., headed by Ricardo P. Cuerva and Ricardo T. Veloso, has agreed to incorporate a new company that will have the same name -- National Life Insurance Co. of the Philippines. It will also comply with the net worth requirements for existing insurance companies.
The insurance company will redeem insurance policies, pay cash surrender values and convert term policies, in addition to other agreements.