German insurer buys 51% of PNB Life
Germany’s leading insurer Allianz has completed a deal to acquire 51 percent of PNB Life Insurance Inc., allowing the foreign firm to return to the local market and boost cross-selling activities through a bancassurance partnership with Philippine National Bank.
Following the closure of the deal with the PNB group, Allianz announced the appointment of Olaf Kliesow as chief executive officer of the new joint venture effective Monday.
The acquisition marks Allianz’s entry into a fast-growing insurance market with an established distribution network, and enhances the group’s position in Asia Pacific.
Part of the joint venture between Allianz and PNB is a 15-year bancassurance agreement which is seen to provide Allianz exclusive access to more than four million customers across 669 PNB and PNB Savings Bank branches. The joint venture will be called Allianz-PNB Life Insurance Inc., pending regulatory approvals on the change in name.
“The culmination of this transaction is a significance milestone for Allianz in the region, and a key step in our strategic priority to tap growth in Asia’s emerging markets. Under Olaf’s strong leadership, Allianz-PNB Life will accelerate its growth to become trusted insurance partner for our Filipino customers,” said Geroge Sartorel, CEO of Allianz Asia Pacific.
Olaf was most recently the head of Allianz’s Inforce and Business Development, Global Life and Health. He will be based in Manila and is expected to drive Allianz’s program to introduce the new brand and its comprehensive product suite to the local market.
PNB president Reynaldo Maclang said: “Philippine National Bank’s strategic partnership with Allianz adds another milestone in our insurance business as we continue to uphold our commitment to our customers nationwide. The stronger Allianz-PNB Insurance Inc. will enable us to create world-class, more customer-centric products and services aimed at helping our clients achieve the financial security they deserve.”
This deal gives Allianz renewed foothold in the Philippines after a 13-year hibernation. Allianz operated in the Philippines in a joint venture with the Pioneer Group for five years until its pullout in 2003. It was at a time when the country was starting to recover from the Asian currency crisis of 1997-1998 and the second “People Power” mass uprising that toppled then President Joseph Estrada in 2001.
Allianz offers a comprehensive range of insurance and asset management products and services to 85 million customers in more than 70 countries. In 2015, it had around 147,000 employees and achieved revenues of 125.2 billion euros and an operating profit of 10.7 billion euros. The German insurer counts as the following as its strongholds: United States, Germany, France, Italy, the United Kingdom and the Asia-Pacific region.
As of the end of 2014, PNB Life had total assets of P19.6 billion and a capital of P1.95 billion. In 2014, the insurance firm posted a net income of P255.4 million.
