GT Capital buys 67% stake in insurer Charter Ping An in consolidation move

GT Capital Holdings Inc. bought a 66.7-percent interest in Ty-owned insurer Charter Ping An Insurance Corp. for P1.4 billion, as part of the a to consolidate the non-life insurance business directly under the conglomerate.

The conglomerate said the share-purchase deal covered 2.33 million shares of Charter Ping An at a fixed price of P614.3 per share, and that the shares were bought from various investment holding companies of George Ty.

 

The remaining 33.3 percent of Charter Ping An is held by First Metro Investment Corp., GT Capital noted Tuesday in a disclosure to the Philippine Stock Exchange.

 

“The consolidation of Charter Ping An into GT Capital is timely, given the encouraging prospects for growth in the country’s non-life insurance industry,” conglomerate chairman Arthur Ty said in a statement.

 

“This capacity for expansion is largely driven by the sustained robust performance in the auto, property, and financial services sectors. The acquisition also provides strong synergy with our existing businesses,” he added.

 

Along the line of its business model, GT Capital invests in market-leading companies that possess strong growth potential.

 

Charter Ping An was No. 2 in terms of net income and No. 4 in net premium written among the 67 non-life insurers in the Philippines last year.

 

The insurer registered a 27-percent  compounded annual growth rate in net present value, compared with the industry rate of 10.5 percent over the past three years. – VS, GMA News