SB Finance launches insurance for small borrowers

SB Finance Company Inc. teamed up with FWD Life Insurance Corp. for a joint offering in which the latter’s group credit life insurance (GCLI) product is made available as a voluntary add-on to applicants of the former’s personal loan.

GCLI is designed to provide small financial institutions protection from unpaid loans due to loss of life, critical illness or total and permanent disability of its borrowers.

The insurance offers a minimum coverage from P10,000 to P2 million, promising borrowers of SB Finance with financial security and protection whenever they take out a loan.

The GCLI add-on will cover the loan balance of the borrower in the event of death or total and permanent disability. It costs P4.32 per P1,000 loan amount and is open to borrowers aged 21 to 70 years.

SB Finance is a partnership among Security Bank Corp. and units of Japan-based MUFG group and Thailand-based Krungsri group or Bank of Ayudhya.

“The integration of the [GCLI] into our product allows them [borrowers] to protect themselves and their families while having access to funds that can improve their way of living,” SB Finance president and chief executive Abbie Casanova said in a statement.

In 2017, Security Bank entered into a strategic partnership with FWD Philippines to provide its clients with insurance services tailored to their evolving needs.

“FWD enables people to celebrate living, and through this partnership with SB Finance we can help more Filipinos from all walks of life reach for their goals and achieve financial independence,” said Li Hao Zhuang, chief executive of FWD Philippines.

Earlier, another Security Bank unit, SB Capital Investment Corp. also teamed up with Krungsri and MUFG Securities (MUS) Asia to further bolster its global reach and enhance the promotion of onshore and offshore business opportunities for its inbound and outbound clients.

SB Capital and Krungsri will provide merger and acquisition advisory services to capture cross-border M&A opportunities, similar to its existing arrangement with MUFG.

Meanwhile, SB Capital and MUS Asia will launch a debt capital market business, poised to capture offshore bond issuance opportunities.

“Security Bank continues to leverage its partnerships to increase its global reach and capability in the financial services industry,” Security Bank executive Vice president Takashi Takeuchi said.