The Gokongwei Group and Maxicare Healthcare Corp., the largest asset-holder in the health maintenance organization (HMO) sector, have obtained a license to run their P2 billion life insurance company.
Maxicare Life Insurance Corp. (MaxiLife) has recently been given permission by the Insurance Commission to operate in the nation.
MaxiLife is the first domestic insurer to be established as a “new domestic life insurance company” under the Insurance Code of the Philippines. MaxiLife was officially established by Gokongwei-led JE Holdings Inc., Maxicare, and its parent company Pin-An Holdings Corp.
This indicates that rather than acquiring an existing insurer, MaxiLife was established through the incorporation of a new entity. MaxiLife has capitalization worth P2 billion, exceeding the P1 billion legal minimum for new domestic life insurers, according to IC commissioner Dennis Funa.
According to Funa, “this new investment in the insurance industry represents a growing confidence in the regulatory framework that has been applied to the industry over the past six years.
The goal of MaxiLife is to provide insurance coverage to the current Maxicare members who are eligible for treatment, wellness, and prevention benefits as a result of their HMO contracts with the business.
The Gokongweis became an equal shareholder in Maxicare with Equicom Group last month after purchasing a 42.31 percent stake in the company.
The Equicom Group is involved in a variety of commercial ventures, including those in the financial, medical, and IT sectors.
With a P15.21 billion asset base, Maxicare provides corporate and individual clients with nationwide services through a network of more than 24,000 physicians and specialists, 1,400 hospitals and clinics, 1,000 dental offices, and 180 dialysis and rehabilitation facilities.
Maxicare’s profit dropped 32% to P1.39 billion last year, following the industry trend of declining net incomes due to higher coverage costs.
Following the P12.68 billion in health benefits that Maxicare issued in 2021.
