Mercantile Insurance marks 51st year

MANILA, Philippines - One of the country’s oldest non-life insurance firms is marking more than half a century of existence today with renewed vigor, enthusiasm and hope for the future.

Mercantile Insurance Company, which began as an insurance agency in 1961, is turning 51 years old today. And amid challenging times in the industry due to the steep capitalization requirements and growing competition, it decided to stick to its core value of frugality and simplicity in celebrating a milestone in its history.

“We’re just very grateful that we have gone this far,” said Honorio Ramajo, the company’s chairman & president. Ramajo, now 82, started his career in insurance as one of the original employees of Mercantile. He has not left the company since day one.

“We are truly blessed to have loyal employees. This is maybe the reason why our clients treat us like family,” he said.

Mercantile officially opened its doors as an insurance company in 1962 in the bustling Escolta, the old business center of Manila. Starting with only nine employees, the company has grown into a major force in Philippine insurance industry over the years, with 11 regional offices in San Fernando, Pampanga, Dagupan, Calamba, Legaspi, Cebu, Bacolod, Iloilo, Davao, Cagayan de Oro, Gen. Santos and Tagum City.

Last year it earned P210 million in retained premiums, a very impressive performance for a medium-sized firm that is known to be conservative both in its underwriting and marketing.

Ramajo said Mercantile has been a trusted name in non-life insurance, particularly in Surety, Fire, Engineering Lines, Marine, Casualty and Motor Car, ever since the 1970’s. Its headquarters in Intramuros, a classic building with statues of horses in front, is a landmark and people who require insurance and surety bonds in transacting with government agencies such as the Bureau of Customs, Department of Public Works & Highways, Central Bank of the Philippines, etc. go to Mercantile for this purpose.

Yet despite its growth, Mercantile which was originally owned and controlled by the Unson family, is now highly diversified, with the major officers of the company in control.  This is the reason, Ramajo says, why employees and clients also treat each other with a “family-like trust,” which is very important in the business of insurance.

Ramajo, however, says Mercantile owners do not close their doors to foreign investments.

“Big foreign groups have been expressing their interest in Mercantile. They know that we are a very stable company. We are entertaining some of them. We see this development as an opportunity to grow, especially now that the industry is preparing for a bigger market come 2015,” he said.

The Philippine insurance industry is gearing to open up to the Association of Southeast Asian Nations (ASEAN). By 2015, it will be removing all barriers to international trade, including the business of insurance.

Ramajo says this will definitely change the landscape of insurance business in the country.

“There will definitely be mergers and acquisitions. This is something we take very seriously at Mercantile,” he said.

But before that happens, Mercantile would rather focus first in celebrating another year. Ramajo said the company will take this opportunity of its anniversary to continue extending support to the less privileged, particularly the sick. Mercantile regularly donates to the Philippine General Hospital, Philippine National Red Cross, Tulay ng Kabataan Foundation, Hospicio de San Jose, Childrens’ Joy Foundation, Friends of Intramuros Foundation, Brgy. 655, Regina Rosarii, and The Sheaver’s Association, Inc.. It even supports scholars, although it prefers to keep such charitable activities private.

“We make it a point to share our blessings. This is probably the reason why God never stops showering us with more blessings,” he said.