CLIMBS Studies CISP Merger Proposal

The Climbs Life and General Insurance Cooperative (CLIMBS) is now studying the proposal of the Cooperative Insurance System of the Philippines (CISP) for a merger.

During CLIMBS 42nd General Assembly in Cebu City on April 26, 2014, the assembly gave its imprimatur to entertain the idea proposed by CISP. With the go signal from the Board of Directors, CLIMBS President and CEO Fermin L. Gonzales suggested that a committee be organized to scrutinize the proposal.

CLIMBS Board of Director and Vice-Chairperson MGen Gilbert S. Llanto (Ret.) chairs the Merger Committee.

Gonzales said one of the most important things that must be done to determine the feasibility of the merger is a due diligence audit to be conducted by an external auditor. However, Gonzales said that CISP and the First Community Cooperative Mutual Benefit Association (FICCO MBA) are also in the process of integration or merging their insurance portfolio. Because of this he said CISP and FICCO MBA should finalize first their relationship before CLIMBS can proceed with the conduct of a due diligence audit on CISP.

He said that the CLIMBS Merger Committee decided to wait for the outcome of the talks between CISP and FICCO MBA.

Several years back, the two insurance cooperatives were approaching the possibility of working together, but the CISP backed out when the preliminary agreement for a possible integration of the two entities was about to be signed. The reason for its withdrawal from the discussion table was not clearly articulated by CISP.

However, Gonzales said being an advocate for unity in the movement CLIMBS does not close its door for another opportunity of cooperation with CISP. He said CLIMBS has always been and will continue to advocate for unity in the coop movement. This explains why CLIMBS entertained the latest proposal of CISP.

Gonzales said the committee will study the papers submitted by CISP with the end in view of coming up with a recommendation that is mutually beneficial for both entities and to the coop movement.

Furthermore, Gonzales also pointed out as well that it is the general assembly who has the final say on the matter.

In coming up with the recommendation, he said the committee is expected to be meticulous, prudent, diligent and thorough in the performance of its task.

Source: The CLIMBS Journal, Vol.1 No.25