THE INSURANCE COMMISSION (IC) lifted its cease-and-desist order (CDO) on nonlife insurer Travellers Insurance and Surety Corp. (TRISCO) effective Dec. 4, releasing it from conservatorship and allowing it to resume its operations.
TRISCO was prohibited from conducting business and was placed under conservatorship effective June 3 due to its inability to comply with requirements under the amended Insurance Code.
According to an earlier statement posted on TRISCO’s website, it was stopped from taking on new business due to issues with its net worth and capital.
“During the examination of the 2022 Annual Statements of TRISCO, the Insurance Commission denied a significant amount of investments made by the company, which impaired its net worth. Hence, TRISCO made a complete capital infusion as of May 27,” it said.
“On May 31, TRISCO had a meeting with the Financial Examination Group (FEG) of IC to check on the status of our compliance, and was informed of the documents needed for submission for validation. Thus, on June 3, we submitted the required documents before FEG-Non-Life. Pending action on our compliance, TRISCO was served with the CDO on the same day after an hour.”
The nonlife insurer said in a separate statement following the lifting of the CDO and its release from conservatorship that it “remains strong and steadfast” and is looking to boost its capital position.
“TRISCO stockholders have infused P950 million this 2024, in anticipation of the company’s plan to increase its authorized capital stock to P4 billion by 2025, further boosting its financial stability,” it said.
“With this, the company remains resilient and maintains a positive outlook, viewing this experience as both a challenge and an opportunity to strengthen our operations and reaffirm our commitment to delivering reliable, high-quality insurance products and services to our clients and the public,” it added.
TRISCO said it will enhance its enterprise risk management system through the reinforcement of its finance, risk management and governance committees to ensure that there will be no more regulatory compliance issues moving forward.
The insurer is also set to review and adjust its five-year financial plan, including its investment portfolio, “to guarantee long-term growth and stability,” it said.
TRISCO added that it settled claims worth P23.67 million from June to Nov. 6 while it worked with the IC to expedite the evaluation and compliance processes while it was under conservatorship.
The company was established in 1964 and is involved in the business of fire, marine, bonds, casualty insurance, among others.
Its premiums earned stood at P872.54 million and it booked a net income of P265.21 million last year, based on IC data.
Meanwhile, the nonlife industry’s net premiums written increased by 10.19% to P53.13 billion as of end-September from the same period last year. Its net income grew by 17.17% to P6.41 billion. — AMCS
