ALFA, Banc Life to merge as PhilLife

Manila, Philippines -  Asian Life Financial Assurance Corp. (ALFA) and Banclife Insurance Co. Inc. (Banc Life) will be merged into a single entity to be known as Philippine Life Financial Assurance Corp. (PhilLife).

Monico V. Jacob, who is reportedly going to head the new life insurer, said they are completing the documentary requirements with the Securities and Exchange Commission (SEC) and the Insurance Commission (IC).

“We expect the merger to be complete by the end of the year,” Jacob, who is also president and chief executive officer of the PhilPlans First Inc. (PhilPlans), said.

The new life insurer will have more than 24 offices nationwide and over 300 agents.

At the end of 2011, ALFA reported total premium income of P250 million while Banc Life reported P40 million in total premiums.

Banc Life has long been under the wings of the Tanco Group of Companies while ALFA was acquired in May from AsianLife and General Assurance Corp. (ALGA), a subsidiary of Maybank ATR Kim Eng Financial Corp.

“It will have a minimum paid up capital of more than P300 million since prior to the merger both companies were already compliant with the existing capital requirement,” Jacob added.

The minimum paid up requirement for the period 2011-2012 is P175 million, and it will be increased to P250 million the following fiscal year.

When fully operational, PhilLife will complement the insurance requirements of PhilPlans, the largest pre-need company in the country with a consolidated net income of P1.6 billion in 2011 and 300,000 planholders.

It will likewise address the insurance and funding needs of other members of the Tanco Group, which include the STI schools and colleges, Philippine Women’s University (PWU), PhilhealthCare Inc. (PhilCare), Philippine First Insurance Co. Inc. (non-life insurance), Asian Terminal Inc. (ATI), as well as interests in manpower recruitment and placement, property, real estate, and securities.

ALFA specializes in servicing the teaching profession including the revived salary loan program for teachers.

“There are strong synergies being created,” Jacob said.