Tuesday, September 18, 2018
Close  
  • share this

Foreign firm to venture into PH insurance trade

As regulatory climate improves, PCG puts up P1B in capital
/ 03:36 AM September 13, 2013

Multinational firm Pacific Century Group (PCG) will put up a life insurance company in the Philippines, hoping to cash in on the projected growth of the country’s insurance sector.

This makes the conglomerate the first foreign investor in the country’s insurance sector after the new Insurance Code was signed into law on Sept. 5.

ADVERTISEMENT

Insurance Commissioner Emmanuel Dooc said the new insurance company would be named FWD Life Insurance Co. and would start operations by yearend.

He said PCG already had put up the P1 billion in capital requirement mandated by the Insurance Commission. It is now completing the administrative requirements.

“The new investor will come in amid an improved business and regulatory climate in the country,” Dooc told reporters.

PCG, whose operations are focused on Asia, has interests in various sectors, including technology, media and telecommunication, financial services and infrastructure.

Last year, PCG took over the businesses of international financial services firm ING in Hong Kong, Macau and Thailand.

PCG intends to make the Philippines one of its key investment sites, Dooc said.

Once PCG’s life insurance business in the Philippines takes off, the company may consider expanding to the non-life insurance sector, Dooc said.

The amended Insurance Code has made the Philippines an attractive market for foreign insurance companies, he said. This is because the new law removed the difference in capital requirements between foreign and domestic companies putting up an insurance firm in the country.

Under the new law, all companies entering the Philippine insurance sector must put up P1 billion in paid-up capital.

ADVERTISEMENT

But existing players are given more leeway. They may increase their capital requirements once every three years. This year, they are required to have P250 million, and an additional P300 million by 2016. By 2019, they must add P350 million, and P400 million by 2022.

The increase in capital requirements is meant to ensure that existing players have sufficient means to service their liabilities to plan holders.

Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, Insurance, Pacific Century Group, Philippines
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2018 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.