MANILA, Philippines - AXA Philippines is acquiring Charter Ping An for P2.3 billion, marking the consolidation of the Ty family’s life and non-life insurance businesses under one operation.
The transaction, which will allow AXA Philippines a joint venture between GT Capital Holdings Inc., leading global insurance group AXA and Metropolitan Bank & Trust Co. to own 100 percent of Charter Ping An, is subject to customary closing conditions, including the receipt of regulatory approvals.
“By consolidating its life and non-life insurance businesses, GT Capital further strengthens its presence in the country’s underpenetrated yet fast growing insurance industry. We will clearly benefit from the global insurance expertise of AXA, the local market knowledge and network of Charter Ping An, and the cross- selling opportunities among our component companies,” said GT Capital chairman Francisco C. Sebastian.
The deal is expected to be completed in the first quarter of 2016, GT Capital said in a disclosure to the Philippine Stock Exchange.
“Until then, all operations of Charter Ping An and AXA Philippines will be business as usual and shall remain separate, as they currently are,” GT Capital said.
The move will allow AXA Philippines, the second life insurance company in the country, to expand into property and casualty insurance.
Charter Ping An is currently the fourth largest non-life insurance company in terms of net premiums written and premiums earned.
AXA Philippines has been operating in the country since 1999, focused on the life insurance business and providing solutions for savings and investments, health, education, income protection, and retirement. It pioneered bancassurance operations in the Philippines, which is the distribution of insurance products through banks.
“We are very excited about this development, as now we can offer our customers a complete suite of protection products. From protecting themselves, their loved ones, their financial hopes and dreams, and now even their hard-earned assets and properties, we at AXA can be more present in their lives, “said AXA Philippines president and CEO Rien Hermans.
“With the entry into non-life insurance, we see AXA Philippines building on the top five position of Charter Ping An and definitely become a major player and be a top three company in a few years,” Hermans added.
AXA is ranked as the number one global insurance brand for seven consecutive years, from 2009-2015.
According to the 2015 Fortune Global 500 list, AXA is the 20th largest corporation and 29th in the 2015 Forbes Global 2000 rankings.
For his part, AXA Asia regional CEO Jean-Louis Laurent Josi said the AXA group’s “close partnership with GT Capital and Metrobank has enabled us to build a strong presence in this high-growth market and this milestone will create new opportunities for further growth, as well as to help enhance the local insurance sector with a wider range of offerings.” – With Ted Torres