Sells 100% of Charter Ping An to AXA Life
GT Capital Holdings Inc., the listed conglomerate of taipan George Ty, has consolidated its businesses in life and non-life insurance by transferring non-life unit Charter Ping An Insurance Corp. into Philippine AXA Life Insurance Corp.
In a joint statement and disclosure to the Philippine Stock Exchange on Friday, GT Capital said it sold its 100 percent stake in Charter Ping for P2.3 billion to Philippine AXA. The transaction covers 5.125 million shares.
Though subject to regulatory approvals, GT Capital expects to complete the transaction by the first quarter of 2016.
Until then, GT Capital said it’s all business as usual for Charter Ping An and Philippine AXA in terms of operating as separate firms.
“By consolidating its life and non-life insurance businesses, GT Capital further strengthens its presence in the country’s underpenetrated yet fast growing insurance industry.
“We will clearly benefit from the global insurance expertise of AXA, the local market knowledge and network of Charter Ping An, and the cross-selling opportunities among our component companies,” said GT Capital Chairman Francisco C. Sebastian, who is also the chairman of First Metro Investment Corp. (FMIC).
Charter Ping An will be a wholly-owned subsidiary of Philippine AXA, which is 25.3-percent held by GT Capital and 28.2-percent owned by FMIC. FMIC is a subsidiary of Metropolitan Bank and Trust Company (Metrobank), in which GT Capital has 25.2 percent interest.
Philippine AXA is the second largest life insurance company in terms of total premium income in the Philippines. It is the Philippine unit of AXA Group.
“We are very excited about this development, as now we can offer our customers a complete suite of protection products. From protecting themselves, their loved ones, their financial hopes and dreams, and now even their hard-earned assets and properties, we at AXA can be more present in their lives,” Rien Hermans, president and chief executive officer of Philippine AXA, said.
“We are excited to become part of AXA Philippines and look forward to integrating our businesses. The management, staff, and distributors of Charter Ping An see this as a positive development to further strength and grow our organization and the non-life insurance industry,” Mel Mallillin, president of Charter Ping An, said.