The Insurance Commission (IC) has approved the acquisition of Germany’s leading insurer Allianz SE of a 51-percent stake in the life insurance arm of Lucio Tan-led Philippine National Bank (PNB).
“The partnership of the two companies would allow Allianz to enter the market with an established distribution network through its proposed bancassurance agreement with PNB, which has more than 660 branches located in the country,” Insurance Commissioner Emmanuel F. Dooc said in a statement Tuesday.
Munich-based Allianz earlier sought regulatory approval to acquire control over homegrown PNB Life Insurance Inc., as mandated under the Insurance Commission’s Circular Letter No. 2014-37.
Allianz’s joint venture with PNB, which includes a 15-year exclusive bancassurance agreement, will operate under the name Allianz PNB Life Insurance Inc.
The Insurance Commission said Republic Act No. 10607 or the Amended Insurance Code institutionalized bancassurance and allowed cross-selling of insurance products within the premises of Bangko Sentral ng Pilipinas-licensed banking institutions.
“Bancassurance agreements proved to be mutually beneficial to banks and insurance companies. In 2014, the combined total premium of six insurance companies with existing bancassurance agreements accounted for 34 percent of the total premium of the entire insurance industry,” Dooc said.
“Bancassurance likewise plays a major role in the government’s overall target of financial inclusion and developments. This allows the public to have more access to a wide range of financial products and services such as savings, credit, payment and remittance, investments and insurance,” he added.
Allianz had operated a joint venture with the Pioneer Group called Pioneer Allianz Life Assurance Corp. for five years until its pullout in 2003.