MANILA, Philippines -Banclife Insurance Co. Inc., a member of the Philippines First Group of Companies of businessman Eusebio Tanco Jr., is nearing a deal to acquire AsianLife Financial Assurance Corp. (ALFA), one of two life insurance companies under ATR Kim Eng Financial Corp.
A top official of PhilFirst said they are presently conducting due diligence on AsianLife and hope to seal the deal on or before the end of (this) month.
The PhilFirst Group consists of educational institutions STI and Philippine Women’s University; pre-need unit PhilPlans First Inc; non-life insurer PhilFirst Insurance Co. Inc.; as well as investments in hospitals and health centers, textiles and chemicals, cargo handling, power distribution, property, stock brokering and investment banking.
PhilFirst Insurance, established in 1906, is the first Filipino domestic non-life insurance company which provides a wide array of non-life insurance coverage to individuals and corporations.
The impending acquisition is seen as a good fit since the group is heavily involved in education. It will also boost the capital base of Banclife, the smallest active life insurance company with a premium income of P37 million.
A number of insurance companies have been struggling to meet the minimum paid-up capital requirements of the Insurance Commission. Thus, government is urging insurers to consider consolidations and merger and acquisitions (M&A) to strengthen the industry.
Meanwhile, ALFA recorded total premium income of P243 million and a net income of P43.3 million in 2010. Total assets stood at P1.2 billion while total equity was at P359 million.
It focuses on the retail market and is a major player in the Department of Education (DepEd) market offering life insurance and salary loans.
It has 23 branches and 300 agents.
The other insurer under the ATR Kim Eng Group is AsianLife and General Assurance Corp. (ALGA), which focuses mainly on corporate or group accounts, insured under a medical plan. Total premiums in 2010 reached P1.1 billion, ranking it 11th among the 34 life insurance firms in the country.