GSIS Retains Napocor Reinsurance

Article excerpt

State-pension fund Government Service Insurance System (GSIS) retains the reinsure contract for the billions of pesos worth assets of National Power Corporation (Napcor)

According to the Department of Finance (DoF), GSIS has been given back the authority to reinsure Napocor but up to only 70 percent of the risk.

The authority was given back to the state-pension fund, which has been mandated by the law as the sole insurer of all government assets, by the joint bidding committee (JBC) composed of the Departments of Energy and Finance. Napcor and GSIS.

To assure the validity of the insurance premium for all the assets of Napocor, JBC has asked top local and foreign insurance firms for quotations, the DoF said in a statement.

The quotations will serve as a basis or guide for JBC in confirming the insurance and/or reinsurance market conditions "whether or not the premium being charged by GSIS for the retention of 70 percent of the risk is competitive and at par with the insurance market," the DoF explained. …