The Philippines Insurance Commission ordered the liquidation of Caritas Financial Plans, Inc. (CFPI) and approved the company’s liquidation plan after CFPI incurred trust fund and capital deficiencies as of year-end 2024, based on unaudited financial statements. Atty. Jose A. Barcelon was appointed as liquidator. CFPI had been placed under conservatorship in August 2023 for failing to comply with the Pre-Need Code of the Philippines (Republic Act No. 9829) and the Commission’s order to address its capital impairment, and was later placed under receivership in April 2024 as liquidity problems led to delays and difficulties in paying its obligations. The release also notes that CFPI’s parent company, Caritas Health Shield, Inc., was not able to infuse additional capital due to its own solvency issues, and cites Section 50 of the Pre-Need Code, which empowers the Commission to order liquidation and implement a liquidation plan upon determination and confirmation of insolvency. Under the approved liquidation plan, claimant-planholders and creditors will have a 120-day period to file claims between the third and fourth quarters of 2025, with an initial distribution of payments tentatively scheduled for the first quarter of 2026. Claimants will be notified of the results of claim evaluations, and updates will be published via the Commission’s website.

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