GT Capital Holdings Inc. has taken over control of nonlife insurance unit Charter Ping An Insurance Corp., enabling its banking unit to focus on core businesses.
The conglomerate led by taipan George Ty on Tuesday reported to the Philippine Stock Exchange that it had completed the acquisition of 100 percent of Charter Ping An by buying the remaining 33.3 percent stake held by First Metro Investment Corp., the investment banking unit of Metropolitan Bank and Trust Co.
GT Capital bought 1.7 million common shares of Charter Ping An worth P712 million, boosting its interest to 100 percent after acquiring 66.7 percent of the nonlife insurer in October last year.
“The full consolidation of Charter Ping An creates synergies and comes at an opportune time when the country’s nonlife insurance industry expects growth in key sectors such as financial services, property, and auto,” GT Capital president Carmelo Maria Luza Bautista said.
“The sale of the First Metro-owned Charter Ping An shares to GT Capital is in line with our investment divestment and capital raising strategy to comply with Basel III requirements,” First Metro president Roberto Juanchito Dispo explained.
The Basel 3 capital adequacy ratio framework, which the local central bank implemented at the beginning of this year, is designed to improve the ability of banks to absorb losses. This framework also extends the coverage of financial risks and requires stronger firewalls in times of stress.
Charter Ping An currently operates 19 branches nationwide and maintains a sales force of more than 700 agents.
In early 2012, the Ty group embarked on a rebranding campaign for its nonlife insurance unit as part of a strategy to widen market share.