MANILA, Philippines – The Philippines National Bank (PNB) has started selling life insurance products in its 324 branches nationwide.
Through its bancassurance arrangement with PNB Life Insurance Co. (PNB Life), the commercial bank expects to earn through fee-based and commission from the sale of Opulence, Maxi Ally and Peso Power Accelerator Plus.
Bancassurance or cross-selling as classified by the Bangko Sentral ng Pilipinas (BSP), allows a commercial bank-subsidiary, like PNB Life, to sell their products within the branch premises as well as tap the bank clientele.
“With PNB as its new bancassurance partner, PNB Life looks forward to a significant expansion of its business as it now counts on a wider and strategically located distribution network across the country,” PNB said in a report.
The prospects look even brighter when the merger between Allied Banking Corp. and PNB is consummated. The merged bank will have a branch network of over 600.
PNB reported net profits of P889 million in the first three months of 2010. It is growing its consumer banking segment, and fees and commissions through bancassurance is expected to contribute immensely.
PNB Life reported a premium income of over P846 million in 2009, ranking it 12th in that category, of the 34 life insurance firms in the country.
PNB Life is a product of the acquisition of New York Life Assurance Co., and a divestment from the former PNB Beneficial Life now known as Beneficial PNB.