Manulife confirms acquisition of CMG

Manufacturers Life Insurance Co. Philippines Inc., the local unit of Manulife Financial Corp. of Canada, confirmed yesterday The STAR report last Monday that it was acquiring CMG Life Insurance Co. Inc., the Commonwealth Bank of Australia’s life insurance division in the country.

"The Philippines is an important market for Manulife Financial Asia and we have long sought a strategic opportunity to expand our presence here," Manulife general manager for Asia Vic Apps told a new conference.

Manulife Phils. president and chief executive officer Renato Vergel de Dios said they acquired the 60,000 policies-in-force of CMG Life and the 27,000 education and pension plans of CMG’s pre-need operations.

The acquisition is estimated to result in total premiums of a little over P2 billion for Manulife. With total premiums of P1.491 billion, Manulife Phils. was fourth in the list of the country’s top life insurance firms while CMG Life was 11th with total premiums of roughly P550 million.

Vergel de Dios said they are open to other acquisitions as part of the company’s drive to land among the top three insurers in the country.

"If there are opportunities we are prepared to review and probably execute it," he confirmed. The three top insurers in the country as of end 2001 are the Philippine American Life and General Insurance Co. (Philamlife), SunLife of Canada Philippines Inc., and Insular Life Assurance Co. with total premiums of P7 billion, P5 billion and P4 billion, respectively.

Phe Philippine Axa Life Insurance Corp. which ranked sixth last year reported total premiums of P2.14 billion for the first nine months this year.

"It would be interesting to see how the two fair by the end of the year," industry sources said.

Meanwhile, the acquisition of CMG’s pre-need products pushed two-year old Manulife Financial Plans from 17th place last year to 10th as of September with its acquisition of the 27,000 active plans.

Manulife Phils. acquired early this year the life insurance policies in force of defunct US-based Metlife Insurance Co. of the Philippines (Metlife Philippines).

In the first semester, it reported a 16-percent growth in total premiums. Manulife Phils. registered a 39 percent increase in terms of new sales.