Sun Life, Grepalife form jv to challenge life insurance leaders

MANILA, Philippines - The joint venture company between Sun Life Financial and the Yuchengco Group will likely catapult it to the top spot among the country’s life insurance companies, company officials said.

Sun Life has acquired 49 percent of Grepalife Financial Inc. (Grepalife) from GPL Holdings Inc. and assumed management control. GPL Holdings is a member of the Yuchengco Group of Companies while Sun Life Financial is considered the country’s second largest life insurance company.

Last year, total premium income of Sun Life stood at P10.6 billion, top-ranked Philippine American Life and General Insurance Co. (Philamlife).

Sun Life Financial and GPL Holdings Inc. also signed an agreement Monday forming a joint venture company that will engage in bancassurance, utilizing the extensive bank branch network of Rizal Commercial and Banking Corp. (RCBC).

The joint venture company — Sun Life Grepa Financial—will concentrate on selling life insurance products through the over 400 RCBC branches spread out nationwide.

Initially, the impact of the new joint venture company will be in the growth of new written policies that may catapult it to top spot among the country’s life insurance companies.

The bancassurance joint venture company is expected to tilt the balance as Philamlife is already relying heavily on its own joint venture bancassurance company callled BPI Philam Life, which reported a premium income of P5.6 billion last year.

Sun Life Financial president and chief executive officer Riza Mantaring said that the delivery of services will reach new heights with the joint venture.

“We welcome this new acquisition and bancassurance alliance with enthusiasm, as it allows us to serve more Filipinos and promises to bring us growth in our business,” Mantaring said.

Former Sun Life Financial chief operating officer Naresh Krishnan will take the helm of Sun Life Grepa Financial. He also oversaw the distribution and mutual fund business of Sun Life Financial.