MANILA, Philippines — The joint venture between Philippine National Bank and Allianz has teamed up with British banking giant HSBC for an exclusive distribution agreement in a bid to increase insurance penetration in the country.
Allianz PNB Life and HSBC Wealth locally incorporated as HSBC Investment and Insurance Brokerage Philippines Inc. (HIIB) have enhanced their distribution agreement to become exclusive for 14 years.
This will cover the distribution of life insurance products to HSBC customers in the Philippines.
Last July, Allianz PNB Life chief marketing officer Gino Riola said the life insurer is set to have an exclusive partnership with another bank as it works to meet demand with better distribution.
Allianz PNB is among the major life insurers in the Philippines, that began its operations as a subsidiary of Allianz Group in 2016.
It is a provider of variable life products, complemented by a full line of life protection offerings for individuals and institutions.
In 2017, Allianz PNB Life signed a partnership deal with HIIB giving HSBC customers opportunities for wealth accumulation.
Allianz PNB Life CEO Joe Gross said the partnership would allow the firm to offer more protection and health product propositions and innovative customer experiences for affluent clients.
“This strategic partnership solidifies our position as a leading business partner and further supports HSBC Group’s ambition to be the leading wealth manager in Asia,” Gross said.
Currently, majority or about 80 percent of Allianz sales is through bancassurance given the nature of the joint venture.
With the exclusive distribution agreement, this would allow the firm to focus its efforts in terms of insurance awareness.
Allianz PNB Life operates 11 business centers located in key cities across the country, with the support of over 260 employees and more than 2,500 financial advisors to serve policyholders.
The exclusive distribution partnership between Allianz and the PNB with over 600 nationwide branch networks provides bancassurance opportunities to reach a broader base of Filipinos.
As of the first quarter, Allianz PNB Life ranked ninth with P97.33 billion in terms of assets and 15th in net worth at P2.47 billion.
It is the 12th largest life insurance provider in the country in terms of net income with P148.5 million as of end-March.