Phil Charter eyes merger

The Philippine Charter Insurance Corp., a member of the Metrobank Group of Companies, is in the market for an acquisition to expand its nationwide scope.

"Metrobank has an appetite for buying, not selling," Philippine Charter Insurance president and chied executive officer Isidro Ong said.

Ong added that they were always looking for opportunities to enlarge their coverage particularly in the Visayas and Mindanao region. The non-life insurance company is spread out extensively in Luzon but thinly in the Vis-Min area.

"We are looking for acquisitions were the selling company has a strong marketing organization especially in the Vis-Min area, and a good underwriting mix," he added.

Fifty-five percent of its premium earnings come from the fire insurance sector while the remaining 45 percent are spread out in motor, casualty and marine.

"We are always interest if there is value to our corporate portfolio."

Early last year, they held several discussions with a non life insurer that was selling. However, it did not have the right amount of underwriting mix and regional marketing network "to give the company any value in the acquisition."

Ong pointed out that Standard Insurance Co. Inc. did in fact approach them for merger prospects late this year.

"They made a presentation but that was it," the Philippine Charter Insurance chief executive explained. "It never went beyond that."

He made it clear that Metrobank and the Philippine Charter Insurance will always be the surviving entity in any merger situation. "Unless it is a multinational corporation which has a capital base 10 times that of our mother unit." – Ted Torres