Goodbye, SisNova

Following a growing number of complaints from policyholders and employees, which have accumulated since the COVID-19 pandemic, the Governing Board of the National Insurance and Surety Commission revoked SISNova's registration to operate as a specialized health insurance institution.

The mechanics of the Monterrey-based firm's collapse are meticulously described in the publication of the Official Gazette of the Federation. The administrative procedure that led to this ruling began on May 3, 2024, following the failure of the company's board of directors, headed by Carlos García Garza, to comply with the regularization plan submitted to the tax authorities. This concludes a nightmare that lasted almost three years. In February 2023, the Monterrey-based insurer's investment base registered a shortfall of 89.5 million pesos, and two months later, the National Insurance and Surety Commission (CNS) issued a letter urging its board of directors to restore solvency parameters and submit a regularization plan.

The main action proposed by SiS Nova was to make a contribution of 100 million pesos. The plan's expiration date was set for September 7. The Commission requested proof of compliance with the regularization plan, and in a letter dated October 5, the institution's general director stated that the 100 million peso contribution had not been made and that its statutory parameters continued to fall outside its solvency limits.

On October 20, the CNSF requested the submission of complementary actions to the regularization plan to address the gaps in its solvency parameters. In his response to this request—on November 7—SiS Nova's CEO stated that he was uncertain about the amounts and dates on which his shareholders would make their contributions.

Meanwhile, a routine inspection confirmed noncompliance with the external audit program—resulting in a sanction from the regulator—and other errors in the accounting records that point to a critical condition: it failed to provide supporting documentation justifying the disbursement of 59.5 million pesos in advance payments and reported an outstanding balance with its reinsurer of 68 million pesos.

The conclusion is incontrovertible: the insurer is unable to retain risks until it fails to submit its maximum retention limit for the 2024 financial year. Those responsible for overseeing compliance with these and other obligations are still waiting for Sis Nova's management to submit the documentation and fulfill their obligations.

Aside from the reports on the Monterrey-based insurance company's finances, the situation of its administrative staff and sales force hired by Inflexión en Salud SAPI de CV and Consorcio de Redes de Servicio, SA de CV, respectively, is also being discussed.

To emerge from insolvency—and avoid revocation—SiS Nova required an injection of 520 million pesos, according to an actuarial estimate. In addition, the labor liabilities that have accumulated since the end of 2023 are the most painful and least visible part of the problem facing Paulino Encarnación Decanini Garza.

In the cluster of high-impact cases currently underway, decisions have already been made at the National Palace. Some, such as the mega-scam involving Grupo Xoy, involving Venezuelan businessman Carlos Lazo, or the irregular operations of Corafi and Grupo Escorfin, fall outside the purview of regulatory agencies; others—the dispute between the Zaga and El Mann families, for example—demonstrate the poor performance of tax authorities in terms of inspection and oversight.

Side effects

WARNINGS . After months of evasions and delays, Jacques Pierre Debois Mateos appeared before a judge at the Reclusorio Norte (North Prison). Those defrauded by Unifin and other scammers, such as Bed Bath and Beyond, will reactivate their lawsuits against the controversial financier, who has entrusted his defense to a team of lawyers linked to the Salinas administration.