BDO diversifies into insurance, acquires Generali Pilipinas

BDO Unibank Inc. is acquiring full control of Generali Pilipinas Holdings Company Inc. and the insurer's subsidiaries as part of a strategy to diversify into the life insurance business.

 

The Philippines' largest bank in terms of total assets, loans, deposits, capital and trust funds under management intends to sell insurance to its retail customer base.

 

"BDO is re-focusing its insurance strategy to align with its thrust to solidify its presence in the broad-based middle income market," the bank said in a regulatory filing.

 

"While the partnership with Generali has been integral to the success of the companies to date, BDO intends to embark on a new journey of diversifying into the life insurance sector via this new wholly owned unit to maximize cross selling of products to its extensive retail customer base, said Nestor V. Tan, BDO president & CEO.

 

To make this happen, the bank and the Generali Group concluded an agreement to terminate the joint venture vehicle Generali Pilipinas Holdings, the parent of Generali Pilipinas Life Assurance Company and non-life insurer Generali Pilipinas Insurance Company.

 

Generali Pilipinas Holdings is the joint venture vehicle created out of the insurance partnership forged between BDO and Generali in March 1999.

 

“The Philippines is an integral part of our strategy in Asia, given the growing opportunities in the market. Following this agreement, we confirm our commitment in the country with full control of Generali Pilipinas Insurance and we intend to remain a significant player in the Philippines," said Jack Howell, regional officer for Assicurazioni Generali S.p.A.

 

Eventually,  Generali Pilipinas Holdings and GPLAC will be renamed into BDO Assurance Holdings Corp. and Generali Pilipinas Life into BDO Life Assurance Company Inc. 

 

The transaction is subject to closing conditions and the requisite corporate and regulatory approvals. – VS, GMA News