BDO Unibank Inc (Philippines) has taken full control of its life insurance entity from its joint venture partner Generali Group. BDO terminated the joint venture vehicle Generali Pilipinas Holdings Co. Inc. (GPHC), the parent firm of life insurer Generali Pilipinas Life Assurance Co. (GPLAC) and non-life insurer Generali Pilipinas Insurance Co. (GPIC).
GPHC was created out of the insurance partnership forged between BDO and Generali in March 1999.
BDO, the country’s largest bank, will take full control of GPHC and GPLAC, which will be renamed BDO Assurance Holdings Corp. and BDO Life Assurance Co. Inc. respectively.Meanwhile, Generali will take full control of GPIC and continue to operate in the Philippines, which is part of its Asia-wide operations.
By assuming full control of the GPHC and GPLAC insurance operations, BDO said it would be able to adapt more readily to the demands of its target markets. BDO president and chief executive officer Nestor V. Tan noted that while the partnership with Generali has been integral to the success of the companies, “BDO intends to embark on a new journey of diversifying into the life insurance sector via this new wholly-owned unit to maximize cross selling of products to its extensive retail customer base.”
BDO is re-focusing its insurance strategy to align with its thrust to solidify its presence in the broad-based middle income market. Life insurance policies are sold through BDO’s 880 branches nationwide and is a contributor to the bank’s fee-based earnings.
China Banking Corp., another bank affiliate of the SM Group, likewise operates a bancassurance joint venture company known as Manulife Chinabank Life Assurance Corp. with Manulife Financial, one of the world’s largest insurers.
Generali Pilipinas Life reported total premium income last year of nearly P5 billion, placing it ninth overall, followed by Manulife Chinabank Life Assurance Corp.
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