Philam Life eyes PPP investments

HONG KONG – The Philippine American Life and General Insurance Co. (Philam Life) is interested in making investments in Public-Private Partnership (PPP) projects in the Philippines and around Asia Pacific.

“If there are a number of good projects, we can look at it,” Philam Life interim president and chief executive officer Estelito G. Madrid said in a press briefing yesterday.

The Aquino administration, through the National Economic and Development Authority (NEDA), has approved a total of 97 projects worth P1.39 trillion ($31.42 billion), of which 81 are critical infrastructure programs and projects, with a total cost of P1.24 trillion ($28.05 billion).

Of the total number of approved projects, 24 are funded through PPPs, 54 projects are financed through official development assistance, and 19 projects are for local financing.

Philam Life has been involved through consortiums with such big-ticket infrastructure projects such as the South Luzon Exchange (SLEX) and the Manila Cavite Expressway.

Mark Tucker, AIA Group chief executive officer and president, said in the same briefing said they have been involved in several PPP programs across the region. Philam Life is a subsidiary of the AIA Group.

“We just have to find the right vehicle for making investments,” Tucker said.

He further explained that insurers are always looking for investment opportunities that are long term in duration.

“Infrastructure and life insurance are long term business, and long term assets are important to us as the right vehicle,” the AIA chief executive added.

The Philippines is one of the least developed insurance markets in terms of penetration, which AIA views as a huge opportunity for expansion.

The country’s economic growth has been marching forward, offering more opportunities for both investment and premium growth. The economy grew 6.1 percent last year while inflation is still under control.

The AIA Group chief executive believes the Philippine economy will expand by another 6.7 percent this year.

Sustained economic growth leads to higher per capita income, which in turn allows for greater access to protection products such as life insurance.