MaxiLife and Maxicare has P2 billion life insurance venture by Gokongweis and Maxicare

July 29, 2022

The largest asset-holder in the health maintenance organization (HMO) industry, have obtained a license to operate their P2 billion life insurance firm with joint venture MaxiLife and Maxicare.

Maxicare Life Insurance Corp. was recently approved and permitted to conduct business in the country by the Insurance Commission.

MaxiLife, founded by Gokongwei-led JE Holdings Inc., Maxicare, and its parent company Pin-An Holdings Corp, is the Philippines’ first domestic insurer to be designated as a “new domestic life insurance company” under the Insurance Code.

This means that life insurance was formed by incorporating a new entity rather than acquiring an existing insurer.

With a capitalization of P2 billion, IC commissioner Dennis Funa stated that insurance meets the law’s requirement of P1 billion for new domestic life insurers.

Funa said that MaxiLife is notable for being the first domestic insurer to be founded as a new domestic life insurance company under Section 194 of the Insurance Code of the Philippines as amended by Republic Act 10607.

MaxiLife and Maxicare intends to provide insurance coverage to current members who receive treatment, prevention, and wellness benefits through the company’s HMO agreements.

The group acquired a 42.31 percent stake in  last month, making it a co-equal shareholder with Equicom Group.

The Equicom Group is involved in a variety of business activities, including finance, health care, and information technology.

The life insurance, which has a P15.21 billion asset base, serves corporate and individual customers across the country through a network of over 24,000 doctors and specialists, 1,400 hospitals and clinics, 1,000 dental facilities, and 180 rehabilitation and dialysis centers.

MaxiLife and Maxicare profit fell 32% to P1.39 billion last year, reflecting an industry trend in which net income fell due to increased spending for coverages.

According to the IC, they issued an industry-leading P12.68 billion in health benefits during the second year of the pandemic.

In general, medical claims paid by HMOs grew by a fourth to P32.72 billion from P26.17 billion, as policyholders asked for the release of their benefits mostly for COVID-19 hospitalization and treatment.

This is indeed a good move for partnership between MaxiLife and Maxicare.