Grepalife, Great Life merger done by March

MANILA, Philippines - The consolidation of life insurers Great Pacific Life Assurance Corp. (Grepalife) and Great Life Financial Assurance Corp. (Great Life) will be consummated by the first quarter of 2010.

Grepalife will be the surviving entity with minimal dislocation as both are members of the Yuchengco Group of Companies. Great Life was formerly known as Nippon Life Insurance Phlippines Inc. (Nippon Life).

“We have been coordinating activities for the most of 2009,” Grepalife president and chief executive officer Victor P. Quisumbing revealed.

That would form a life insurance company with assets worth over P10 billion. Total premium income is likewise estimated to reach almost P2 billion.

In 2008, Grepalife reported premium income of P1.8 billion while Great Life P619 million.

Grepalife ranked eight overall among the country’s 35 life insurers last year while Great Life was 16th.

Grepalife is reportedly the leading life insurer in the group insurance business, and the integration of Great Life’s group business said to concentrate on manufacturers and locators, will further cement its leadership in the sector.

In late November this year, Grepalife acquired one million shares of Great Life recently from the Rizal Commercial Banking Corp. (RCBC), the commercial banking unit of the Yuchengco Group.

That was reportedly worth P211 million in cash for one million shares of Great Life. The selling price per Great Life share P211,488 represents the audited end 2008 book value of Great Life’s shares.

RCBC however retains five percent control of Grepalife.

“In pursuit of RCBC’s strategic on bancassurance, Grepalife will enjoy the benefits of a stronger company, with economies of scale, wider customer base and market reach. As bancassurance partner, the bank will be able to benefit from the developments,” RCBC officials said.