IC grants new license to AIA

MANILA, Philippines — The Insurance Commission (IC) has issued a new license for AIA Philippines Life and General Insurance Co. after its merger with another life insurer.

IC Commissioner Dennis Funa said the regulator issued AIA Philippines with a new Certificate of Authority to transact business following its amalgamation with Philam Equitable Life Assurance Co. Inc. (PELAC).

According to Funa, the new license permits AIA Philippines, as the surviving entity in its merger with PELAC, to pursue business in the life segment of the insurance industry.

Funa said the IC waited for the Securities and Exchange Commission (SEC) to give its approval for the transaction between AIA Philippines and PELAC. After the SEC authorized the merger to proceed in March, only then did the IC process the new license for the surviving firm.

Under the guidelines, the IC requires consolidating entities to surrender their respective licenses before they can formalize their merger. Afterward, the surviving insurer must get the approval of the SEC and then apply for a new license from the IC.

Funa said the IC had listed PELAC as an inactive firm since 2020 although it has maintained its Certificate of Authority and has complied with net worth requirements.