MANILA, Philippines - The Philippine National Bank (PNB) and Allianz AG of Germany had reportedly entered into an understanding after months of courtship, which likewise involve several other foreign insurers.
According to industry sources, the prospective partnership would allow the German insurer access to PNB’s branch and customer network in selling various insurance products.
On the other hand, the deal could bring PNB, ranked among the country’s largest banks, effortless fee-based earnings while opening up various onshore and offshore opportunities for its banking products.
Sources said Allianz, among the biggest global player in the insurance and asset management business, and PNB would likely form a joint venture bancassurance company.
When it pushes through, it would be among the biggest bancassurance partnerships with PNB’s 662 domestic branches and 76 overseas branches, and Allianz global reach.
The existing partnerships are: Philippine AXA Life Insurance Corp., BPI Philam Life Assurance Corp., SunLife Grepa Financial Inc., Manulife Chinabank Life Assurance Corp. and Generali Pilipinas Life and BDO Unibank. The five partnerships are ranked among the top 10 insurers in the country.
Newcomers are FWD Life and Security Banking Corp., and Aeges Life with East West Banking Corp.
The Philippine market is not new to Allianz, having partnered with Pioneer Life from 1998 to 2003.
On the other hand, PNB has several insurance subsidiaries under its wings, which includes PNB Life Insurance Inc., PNB General Insurers Co. and Alliedbankers Insurance Inc., the latter two in the non-life insurance business.
The “losing” bidders such as Fubon Life of Taiwan, Samsung Life of Korea, Zurich Life of Switzerland are still in the market for a partner, with a preference for a domestic and foreign bank.
Meanwhile, Generali Pilipinas Life Assurance Co. will remain in the Philippine market despite its detachment with BDO Unibank Inc., the latter deciding to form its own insurers reportedly to be known as BDO Life Insurance.
Generali Pilipinas is a subsidiary of the Generali Group of Italy.
After hurdling all regulatory requirements, BDO Life will emerge the bancassurance partner with BDO, focused mainly on the retail market while Generali Pilipinas will expand its group life insurance business. The latter also has the option to seek a non-life insurance license.