MANILA, Philippines - Philippine National Bank (PNB), the country’s fourth largest commercial bank, has sold a majority stake in its life insurance arm to the Allianz AG of Germany.
PNB, owned by taipan Lucio Tan sold its 51 percent interest in PNB Life Insurance Inc. to the Allianz Group.
The transaction would result in the creation of a joint venture company to be named Allianz PNB Life Insurance Inc. Details of the transaction including the acquisition costs were not divulged.
PNB president Reynaldo Maclang said the joint venture would offer world-class protection products and services that cater to the diverse needs of customers.
“PNB has always provided innovative care to the Filipinos. Allianz will bring in a lot of experience, technology and new ideas that will benefit our customers and the Philippine market,” Maclang said.
Esther Tan, president of PNB Life, said the strong interest from Allianz and other candidates was a welcome validation of the successful turnaround of PNB Life that we started six years ago.
“We have grown from borderline relevance to a top 10 player, and a major profit engine for PNB and the Lucio Tan Group as a whole. This transaction is the next big step towards our vision to be a leading provider of financial security to Filipinos worldwide,” Tan said.
The STAR earlier reported that PNB and Allianz were scheduled to sign an agreement after months of courtship. Aside from Allianz, other foreign groups that expressed interest in PNB Life included Fubon Life of Taiwan, Samsung Life of Korea, Zurich Life of Switzerland, a Japanese, and Malaysian insurer.
PNB Life is the country’s 10th largest life insurance company with new business premiums of P 3.74 billion in 2014.
An important part of the joint venture between Allianz and PNB is a 15-year bancassurance agreement. – With Ted Torres