MANILA, Philippines – Allianz buys 51% of Philippine National Bank's (PNB) Life Insurance Incorporated, the latter announced Tuesday, December 22.
The Lucio Tan-led firm and Germany's international financial service company entered into a 15-year exclusive partnership, and the joint venture company will operate under the name Allianz PNB Life Insurance, Incorporated.
The 15-year bancassurance agreement between the two firms will also provide Allianz exclusive access to PNB's more than 660 branches located nationwide, and 4 million customers.
“The Philippines is a very fast-growing insurance market supported by a healthy economic outlook and a large, young population of over 100 million people," said George Sartorel, CEO of Allianz Asia-Pacific.
Sartorel added that the transaction with PNB is a unique opportunity to enter into the market with an established distribution network, as part of building its strategic business platforms.
“This venture will allow us to offer world-class protection products and services that cater to the diverse needs of our customers,” PNB President Reynaldo A. Maclang said.
The strong interest PNB drew from Allianz and other candidates was a welcome validation of the successful turnaround of PNB Life that it started 6 years ago, PNB Life President Esther C. Tan said.
“We have grown from borderline relevance to a top 10 player, and a major profit engine for PNB and the Lucio Tan Group as a whole. This transaction is the next big step toward our vision to be a leading provider of financial security to Filipinos worldwide,” Tan added.
Allianz previously operated in the country in a joint venture with the Pioneer Group for 5 years, until the former pulled out in 2003.
PNB, meanwhile, is currently the country’s fourth largest private local commercial bank in terms of assets and deposits.
"The closing of the transaction is subject to regulatory approvals," PNB said in a statement. – Rappler.com