PNB explores bancassurance

MANILA, Philippines - Philippine National Bank (PNB), the bank concern of airline and tobacco magnate Lucio Tan, is pursuing talks to take in a foreign partner who will bring in technology and overseas presence for its bancassurance business. 

“Right now I think we are open and we are considering partnerships to strengthen PNB Life. I think there’s no final decision yet. We are still studying the prospects,”  PNB chief marketing officer Norman Martin Reyes said.

 Foreign companies that have expressed interest in PNB Life include Fubon Life of Taiwan, Samsung Life of Korea, Allianz AG of Germany, Zurich Life of Switzerland, a Japanese and Malaysian insurer.

 Reyes said he is not privy to the negotiations and is not aware if the foreign partner would buy into PNB Life or a new joint venture company would be established. 

However, he pointed out the entry of a foreign strategic partner would strengthen PNB’s presence in the bancassurance industry. 

“A foreign partner brings in a lot of experience, technology, and new ideas on how to service clients, and they bring a wealth of understanding of different clients from different countries,” Reyes said. 

He added the entry of a foreign partner would result to better products and services for the clients of PNB. 

“It may or may not be applicable to this market but it will boil down to better services, insurance products to the customers so that’s the benefit of having these tie-ups,” he added. 

PNB Life is already practicing bancassurance. It booked a premium income of P4.6 billion last year, mostly coming from bancassurance sales. 

In the first half of the year, PNB Life posted a premium income of P3.12 billion. 

Insurance Commission head Emmanuel Dooc earlier confirmed PNB was a target of several foreign players wanting to bring its insurance business via the bancassurance route, either through a joint venture or acquisition.