Tanco group to acquire Asian Life Financial

MANILA, Philippines - The group of Eusebio Tanco is acquiring the AsianLife Financial Assurance Corp. (AsianLife Financial) for still an undisclosed amount.

AsianLife Financial is a member of the Maybank ATR KE Capital Partners Inc. In 2010, it recorded total premium income of P243 million and a net income of P43.3 million. The company’s total assets stood at P1.2 billion while total equity stood at P359 million.

Tanco said that the deal would be sealed before the end of May this year. The firm that would be acquiring the life insurance company would likely be JTH Davies Holdings Inc., of which Tanco is also the chairman.

“When acquired, we will most likely merge AsianLife Financial with our existing life insurance company, Banclife Insurance Co. Inc. (Banclife),” he said.

The Tanco group is still undecided whether Banclife will be the surviving entity, or if a new firm will emerge.

Maybank ATR KE Capital president Manuel N. Tordesillas said that with the impending capital increase, it would make sense to consolidate its resources.

 Also under the wings of the Maybank group, is the AsianLife and General Assurance Corp. (or ALGA) which owns 70-percent of AsianLife Financial.

ALGA is a composite license holder or an insurance firm that practices both life and non-life insurance functions. Total premiums in 2010 reached P1.1 billion placing it number 11 among the 34 life insurance firms.

Tordesillas said that the Maybank Group can stay focused on its core business better if it unloads AsianLife and stay focused on ALGA.

Meanwhile, Tanco believes that “resurrecting” its life insurance business complements its pre-need and education businesses.

The Tanco group operates PhilPlans First Inc. (PhilPlans), the largest pre-need company in the Philippines, with a registered consolidated net income of P1.6 billion in 2011.

It also operates the Systems Technological Institute (STI) and the Philippine Women’s University (PWU).

AsianLife specializes in servicing the teaching profession, including the revived salary loan program for teachers.

The acquisition will also boost the lot of Banclife, which is the smallest active life insurance company. Latest data from the Insurance Commission (IC) show that Banclife has premium income of P37 million.