MANILA, Philippines — Philippine National Bank (PNB) of tobacco and airline magnate Lucio Tan is injecting P392 million in additional capital to its existing joint venture with Munich-based global financial services provider Allianz.
In a disclosure to the Philippine Stock Exchange, PNB said its board of directors approved the infusion of the additional capital into Allianz PNB Life Insurance Inc. during a meeting last Friday.
The additional infusion is subject to regulatory and other necessary approvals, PNB said.
In March last year, the Tan-led bank also infused P245 million in additional capital to the joint venture to remain “comfortably above the minimum regulatory and liquidity requirements.”
Under Republic Act 10607 or the amended Insurance Code of the Philippines, insurance companies are required to have a paid up capital of at least P900 million by the end of 2019 to be raised to P1.3 billion by the end of 2022.
The Insurance Commission has been considering seeking amendments to RA 10607 to keep the prevailing net worth requirement until end-2022 instead of further raising it to P1.3 billion as the law provides.
In December 2015, Allianz acquired a 51 percent stake in PNB Life Insurance Inc. which was later renamed Allianz PNB Life. The transaction was completed in June 2016.
Allianz PNB Life is among the major life insurers in the Philippines providing variable life products, complemented by a full line of life protection offerings for individuals and institutions.
It operates eleven business centers strategically located in key cities across the archipelago, with the support of over 150 employees and more than 800 financial advisors to serve policyholders and deliver great customer service experiences.
The exclusive distribution partnership between Allianz and the PNB with over 600 nationwide branch network provides bancassurance opportunities to reach a broader base of Filipinos.
Allianz PNB Life ranked 24th in terms of paid-up capital as of end-2021 with P250 million. It is the 13th largest life insurance provider in the country in terms of net income with P115.43 million
In terms of assets, Allianz PNB Life ranked ninth with P78.42 billion.