EastWest forms nonlife insurance firm

Gotianun-led EastWest Bank is forming a new nonlife insurance firm as part of a broader strategy to break into the “bancassurance” game.

In a statement, EastWest Bank said the Bangko Sentral ng Pilipinas (BSP) had approved the initial equity investment in its wholly owned insurance brokerage, EastWest Insurance Brokerage Inc. (EWIB).

The BSP approved EastWest’s undertaking in the insurance brokerage in a letter dated June 4.

EastWest yesterday said its new subsidiary would complement “its loan products and make access to protection convenient for its corporate and retail clients.”

Late last month, the bank signed a joint venture agreement with Ageas Insurance International NV for the creation of a life insurance company to be called EastWest Ageas Life.

The joint venture allows Belgium’s largest insurance firm to establish its foothold in the Philippines. The partnership will allow Ageas to take advantage of EastWest’s branch network for distribution.

Under the deal, the partners will each own 50 percent of the company, with Ageas having a slight edge of a few shares.