Munich-based Allianz SE has secured the Insurance Commission’s (IC) approval to take control of PNB Life Insurance, Inc.
Commissioner Emmanuel Dooc on Tuesday announced that Allianz’s bid to purchase 12,750 common shares of stock in the life insurance subsidiary of Philippine National Bank (PNB) had been green-lit by regulators.
Allianz bought PNB’s 51-percent stake in PNB Life in January through a joint venture agreement, forming Allianz PNB Life Insurance Inc.
The transaction marks the reentry of Allianz to the Philippine insurance market after it ended a five-year joint venture with the Pioneer Group, via Pioneer Allianz Life Assurance Corp., in 2003.
Allianz announced that a 12-year bancassurance agreement was an important part of the joint venture with PNB.
“The partnership of the two companies will allow Allianz to enter into the market with an established distribution network through its proposed bancassurance agreement with PNB, which has more than 660 branches located in the country,” Dooc said.
Republic Act 10607 or the Amended Insurance Code took effect in 2013 and institutionalized bancassurance, allowing the cross-selling of insurance products within the premises of Bangko Sentral ng Pilipinas-licensed banking institutions.
“Bancassurance agreements, which are subject to regulatory approvals, proves to be mutually beneficial to the banks and insurance companies,” Dooc said.
He noted that in 2014 for instance, the combined total premiums of six insurance firms with existing bancassurance agreements accounted for 34 percent of the total premiums of the entire insurance industry.
Dooc also pointed out that bancassurance played a major role in the government’s target of financial inclusion.
“This allows the public to have more access to wide range of financial products and services such as savings, credit, payment and remittance, investments and insurance,” he said.