IC clears Allianz-PNB bancassurance tie-up.

Torres T. (Feb 17, 2016). IC clears Allianz-PNB bancassurance tie-up. Retrieved June 14, 2016,
from http://www.philstar.com/business/2016/02/17/1553732/ic-clears-allianz-pnb-bancassurance-
tie

MANILA, Philippines - The Insurance Commission (IC) has approved the acquisition by Allianz SE
of PNB Life Insurance Inc., bringing to nine the life insurance companies with bancassurance
arrangements with Philippine banks.

IC commissioner Emmanuel Dooc said bancassurance agreements are mutually beneficial to the
banks and insurance companies and opens more opportunities for the public to get protection.

“Bancassurance likewise plays a major role in the government’s overall target of financial inclusion
and developments. This allows the public to have more access to wide range of financial products
and services such as savings, credit, payment and remittance, investments and insurance,” Dooc
added.

In 2014, the combined total premium of six insurance companies with existing bancassurance
agreements accounted for 34 percent of the total premium of the entire insurance industry.

The six insurers and their bank partners are: Philippine AXA Life Insurance and Metropoitan Bank
& Trust Co. (Metrobank); BPI Philam Life Assurance Corp. and the Bank of the Philippine Islands
(BPI); SunLife Grepa Financials and the Rizal Commercial and Banking Corp. (RCBC); Generali
Pilipinas Life Assurance Co. and BDO Unibank Inc.; Manulife Chinabank Life Assuance Co. and
China Banking Corp.; and PNB Life Insurance and Philippine National Bank (PNB).

Last year, FWD Life Assurance tied up with Security Bank Corp., along with Ageas Life Insurance
Corp. and East West Banking Corp.

Meanwhile, the Allianz-PNB deal was a result of the 12-year, bancassurance joint venture
agreement between Allianz and PNB which will operate under the name Allianz PNB Life
Insurance Inc.

This marks the re-entry of Allianz to the Philippine insurance market after its pullout from the
Philippines after a five-year joint venture with Pioneer Allianz Life Assurance Corp.

Dooc said the new partnership would allow Allianz to enter into the market with an established
nationwide distribution network through PNB’s 660 branches.

In 2013, Republic Act (RA) 10607, or the Amended Insurance Code took effect, which
institutionalized bancassurance allowing the cross-selling of insurance products within the
premises of Bangko Sentral ng Pilipinas- licensed banking institutions.

The acquisition of 51% of PNB Life Insurance Inc.

Funa, D. (March 22, 2016). The Acquisition of 51% of PNB Life Insurance Inc. retrieved June 14,
2016, from http://www.businessmirror.com.ph/the-acquisition-of-51-of-pnb-life-insurance-inc/

January Allianz SE (Singapore Branch) signified its intention to acquire 51 percent of the
outstanding capital stock, or 12,750 common shares of stock, of PNB Life Insurance Inc. from the
Philippine National Bank (PNB). Pursuant to Section 302 of the Amended Insurance Code and
Circular Letter 2014-37, or the Documentary Requirements for the Acquisition of Control of a
Domestic Insurance Company, regulatory approval was sought by Allianz in a letter to the
Insurance Commission dated January 22, 2016. A month later, after compliance with all regulatory
requirements, the Insurance Commission gave its approval. The partnership will operate under the
corporate name Allianz PNB Life Insurance Inc.

Allianz is a financial conglomerate, founded on May 2, 1890, in Berlin by insurance specialist Carl
Thieme and banker Wilhelm Finck, with an initial capitalization of 4 million marks. Thieme had
earlier founded Munich Re. By 1893 it had opened an office in London, and soon in the United
States, Italy, France, Belgium, the Netherlands and the Balkans. By 1895 Allianz was listed in the
Berlin stocks exchange. In 1922 Allianz Life was created, which soon became Germany’s largest
life insurer. By 1962 its premium income exceeded the 1-billion mark with over 50 percent of its
premium income coming from motor insurance. In 1973 Allianz became Europe’s largest insurer.

Today it is headquartered in Munich, Germany, with a branch office in Singapore. Allianz was
originally a transport and accident insurer. Today it operates under the laws of the European Union
and the Federal Republic of Germany. Allianz is principally engaged in insurance, reinsurance and
asset management. It is a holding company, also called Allianz Group. As of 2015 it has about 85
million retail and corporate clients in more than 70 countries. It has over 142,000 employees
worldwide (as of 2015), with revenues of 125 billion euros and an operating profit of €10.7 billion
(about $12 billion). At least 53 percent of its revenues was generated from life and health
insurance; 41 percent from property and casualty insurance; and 5 percent from asset
management. It generates 34 percent of its business from Western and Southern Europe; 24
percent from Germany itself; 12 percent from the US; and 10 percent from across Asia Pacific,
Central and Eastern Europe, Latin America and other growth regions. In terms of shareholder
structure, 84 percent of its stocks are owned by institutional investors, while the 16 percent is
owned by private investors.

The PNB, on the other hand, is the 4th largest private local commercial bank, in terms of assets
and deposits, in the country. PNB Life is the 10th-largest life-insurance company in the country. It
is chaired by Lucio Tan. A significant feature of the deal is the 15-year exclusive bancassurance
agreement, which will give Allianz bancassurance access to PNB’s 660 branches nationwide, or
about 4 million customers. With the Commission’s approval, it increased to nine the number of life-
insurance companies with bancassurance agreements with Philippine banks.

Allianz is not new to the Philippines. It had been in a joint venture partnership with the Pioneer
Group to form the Pioneer Allianz Life Assurance Corp. since 1998, until it sold its 50 percent
shareholding to Pioneer in January 2003 ending its five-year partnership. Allianz then was not
satisfied with the country’s market growth. The withdrawal led to the recreation of Pioneer Life, now
a 100-percent Filipino-owned insurer.