MANILA, Philippines — Philippine National Bank (PNB) of tobacco and airline magnate Lucio Tan is pumping in P245 million in additional capital in its joint venture with Munich-based global financial services provider Allianz.
The additional infusion is subject to regulatory and other necessary approvals, PNB said.
PNB president and CEO Jose Arnulfo Veloso told The STAR the additional capital infusion would ensure Allianz PNB Life remains “comfortably above the minimum regulatory and liquidity requirements.
“Allianz PNB wants to be proactive in ensuring we are able to continue with expanding the business,” Veloso said.
Under Republic Act 10607 or the amended Insurance Code of the Philippines, insurance companies are required to have a paid up capital of at least P900 million by the end of 2019 and P1.3 billion by the end of 2022.
The Insurance Commission is considering seeking amendments to RA 10607 to keep the prevailing net worth requirement until end-2022 instead of further raising it to P1.3 billion as the law provides.
In December 2015, Allianz acquired a 51 percent stake in PNB Life Insurance Inc., which was later renamed Allianz PNB Life. The transaction was completed in June 2016.
Allianz PNB Life is among the major life insurers in the Philippines providing variable life products, complemented by a full suite of Life protection offerings for individuals and institutions.
It operates 11 business centers strategically located in key cities across the archipelago, with the support of over 150 employees and more than 800 financial advisors to serve policyholders and deliver great customer service experiences.
Allianz PNB Life is the 15 largest life insurance provider in the country in terms of networth, with P1.52 billion as of end 2019.
The Lucio Tan Group is consolidating its non-life insurance businesses by unloading PNB’s stake in PNB General Insurers Co. Ltd. (PNBGen) to Allied Bankers Insurance Corp. (ABIC) for P1.52 billion.
PNB has a 66 percent direct stake in PNBGen, while PNB Holdings owns the remaining 34 percent. PNBGen offers fire, marine, motor cat, fidelity and surety, as well as other kinds of non-life insurance business.
On the other hand, ABIC was founded by a group of enterprising Filipino-Chinese businessmen on May 1960 and came into being on March 1980 after the SEC approved the amendment of the 19-year charter of what was once known as the Tan-led Sincere Insurance Co. Inc.
Article and Photo originally posted by Philippine Star last March 30, 2021 12:00am and written by Lawrence Agcaoili.