Pelac is a joint venture between the Philippine American Life and General Insurance Co. (Philamlife) and Equitable PCI Bank (EPCIB) specializing in bancassurance. Philamlife is the recognized leader in the country’s life insurance industry, while EPCIB is considered the third largest commercial bank in the Philippines with over 400 branches nationwide.
EPCIB is in the process of being consolidated with Banco de Oro Universal Bank (BDO) making it the second largest commercial bank in the country in terms of of asset, third in terms of loans, and second in terms of deposits. It should also result in a branch network of more than 600 branches combined.
For the first three months of 2007, Pelac reported total premiums of P340 million, or over a hundred percent better than the same period in 2006.
First year premiums amounted to P92 million or 74 percent better than the previous period. Single premiums reached P190 million for a 120-percent growth rate.
"The merger committee formed by the Banco de Oro EPCI Inc. (merged entity) has made it clear that a status quo environment will remain in 2007," Stephen Clark, president and chief executive officer of Pelac, said.
Clark likewise indicated that Pelac has been given the green light to sell its policies in the branches of BDO where Generali Pilipinas is not present.
Generali Pilipinas is a life insurance company that is also practicing bancassurance with BDO, which owns at least five percent of the insurer.
The merger committee is still reviewing its options with regard the presence of two life insurers. It has already consolidated several redundant companies of the two banks such as the credit card business, and it has also terminated several contracts.
Both key executives of Pelac and Generali Pilipinas had categorically stated their willingness to "share space" or compete for the same client base of Banco de Oro EPCI Inc.
For the meantime, Clark reported that Pelac’s total premiums last year amounted to P1.18 billion, or a 19-percent increase the P989 million registered in the previous year.
New businesses in 2006 reached P265 million with single premiums hitting P782 million. Renewal business amounted to P133 million.
"Regular premium business increased by 22 percent of total premiums sold in 2006," Clark said.
Pelac has two regional offices in Cebu and San Fernando aside from its head office in Makati.
It has 228 financial sales executives licensed to sell policies through the EPCIB branch network and client base.
In 2005, Pelac was ranked 10th overall in terms of total premium income and 30th in terms of network. There are 34 active life insurance companies licensed by the Insurance Commission.
Only nine insurers recorded total premiums of over P1 billion.