Standard Insurance eyes Zurich Insurance

Standard Insurance Co. Inc. is reportedly acquiring Zurich General Insurance Philippines Inc. for an undisclosed amount, sources said.

Standard Insurance is ranked among the top 10 non-life insurance companies in the Philippines and is the undisputed leader in motor vehicle insurance premiums.

On the other hand, Zurich ranks within the top 20 non-life insurers, although it is stronger in the re-insurance business.

Industry sources revealed that the merger would give Standard Insurance greater access to the re-insurance market, which is critical for non-life insurers especially in the fire and property insurance segment of the business.

However, officials from both camps refused to confirm nor deny reports of the deal.

"You can not get any comments from us based on market speculations and rumors," Zurich chief executive officer Ofelia Yturzaeta said in a telephone interview.

However, the same sources said that Standard Insurance had assured Zurich that it would absorb all the Zurich employees in the event of the merger.

Standard Insurance has a paid-up capital of P500 million and net worth of P846.25 million. Total assets reached P1.803 billion. The non-life insurer has 41 full service branches nationwide, including six agency tie-ups and 35 dealer tie-ups in Metro Manila.

Meanwhile, Zurich General Insurance Phils. reported premiums of P320 million placing it 19th overall in 2000. Its sister company, Zurich Life, ranked 33rd in 2000 with P19-million premium income. – Ted Torres