INSURANCE firms recently named and shamed by the Insurance Commission for allegedly having insufficient capital cried foul on Monday, insisting they have more than what the regulators require.

Generali Pilipinas, a joint venture between Generali Asia and Banco de Oro Universal Bank sent an e-mail to the BusinessMirror saying the supposed infraction was more a matter of timing than of funding.

Its vice president and chief operations officer, Chariza T. Medina-Salgado, said the company actually has capital totaling P1.9 billion or well in excess of the P300 million minimum demanded by IC chief Evangeline Escobillo.

“Through additional cash infusions in 2006 and 2007, as well as funds established and held in escrow earlier this year, Generali Pilipinas’ total capitalization exceeds P1.9 billion, which is more than sufficient to comply with the minimum P300-million net worth requirement,” Salgado said.

Generali Asia operates both the Generali Pilipinas Life Assurance Co. Inc. and its nonlife outfit Generali Pilipinas Insurance Co. Inc.

The respective boards of Generali Asia and Banco de Oro approved and funded the additional capital requirement via direct cash infusion from Generali Asia itself, the lady executive stressed.

“The release to Generali Pilipinas of the funds held in escrow is pending approval by the Bangko Sentral ng Pilipinas. In the interim, formal recognition of the funds held in escrow to be in compliance with Department Order 27-06 has been pending with the Insurance Commission since December 20, 2006,” she added.

Oriental Assurance, also named by Escobillo, insisted its supposed infraction arose from its own decision not to rush things.

“Oriental Assurance’s only fault, if it has any is that it has yet to file its annual financial statements with the Insurance Commission.

“The deadline has been moved to May 31 from April 30 that’s why we did not see any reason to rush things,” Oriental Assurance executive vice president Luz Cotoco said also in an e-mail to the BusinessMirror.

“For the record, the net worth of Oriental Assurance is way above P100 million and to say otherwise is to discredit the reputable and very stable image of our company,” Cotoco said.

She said Oriental Assurance was founded by her grandfather and was ranked 10th in a field of 94 nonlife insurance firms based on premium earned in 2005 and 13th based on gross written premium the same year.

“It is very unfair for the Insurance Commission to do this to us,” Cotoco complained.

Her company was named one of 15 companies whose net worth has fallen below the P100 million level demanded of industry players for this year.

The intent was to raise the net worth of players every year by P25 million until the full P250 million was hit after five years.

GOKONGWEI-OWNED Digital Telecommunications Philippines Inc. has committed to invest $240 million, roughly P12 billion, this year to expand its wireless and wireline infrastructures.

Insurers protest IC order on net worth rule

INSURANCE firms recently named and shamed by the Insurance Commission for allegedly having insufficient capital cried foul on Monday, insisting they have more than what the regulators require.

THE Philippine stock index Monday rose on speculation economic growth in the first quarter accelerated to the fastest in three quarters. Philippine Long Distance Telephone Co. (PLDT) and Ayala Corp. gained.

THE Securities and Exchange Commission (SEC) officially approved on Monday the merger between Banco de Oro (BDO) Universal Bank and Equitable PCI Bank, with Banco de Oro as the surviving entity.

EIB Realty Developers Inc., formerly Urbancorp Realty Developers Inc., is taking the first important step in retracing its way back to profitability: it will undergo quasi-reorganization, which has been approved by its board and tap the public for more money.