MANILA, Philippines — The Gokongwei Group and Maxicare Healthcare Corp., the largest player in the health maintenance organization (HMO) industry in terms of assets, have secured a license to operate their P2 billion life insurance firm.
The Insurance Commission recently approved and allowed Maxicare Life Insurance Corp. (MaxiLife) to do business in the country.
MaxiLife, which was incorporated by Gokongwei-led JE Holdings Inc., Maxicare and its parent firm Pin-An Holdings Corp, is the first domestic insurer established as a “new domestic life insurance company” under the Insurance Code of the Philippines.
This means that MaxiLife was organized through the incorporation of a new entity and not by acquisition of an existing insurer.
With capitalization worth P2 billion, IC commissioner Dennis Funa said MaxiLife is more than compliant with the P1 billion requirement under the law for new domestic life insurers.
“This new investment in the insurance industry marks a growing confidence in the manner by which the industry has been regulated over the past six years,” Funa said.
MaxiLife aims to offer insurance coverage to the current Maxicare members who are afforded treatment, prevention, and wellness benefits through their HMO agreements with the company.
Last month, the Gokongweis acquired a 42.31 percent stake in Maxicare, making it a co-equal shareholder of Maxicare alongside Equicom Group.
The Equicom Group engages in a mix of business activities, including financial services, health care, and information technology.
With an asset chest of P15.21 billion, Maxicare services its corporate and individual customers nationwide through its network of more than 24,000 doctors and specialists, 1,400 hospitals and clinics, 1,000 dental facilities and 180 rehabilitation and dialysis centers.
Last year, Maxicare’s profit declined 32 percent to P1.39 billion, reflecting the industry trend where net incomes fell on additional spending for coverages.
This after Maxicare issued P12.68 billion in health benefits in 2021.