Insurer Ageas goes into PHL as part of Asia strategy

Ageas international insurance group and EastWest Banking Corp. have formed a P2-billion joint venture to build a bancassurance business in the Philippines, the bank said on Friday.

 

The joint venture EastWest Ageas Life will be a start-up company in which the partners will have an equal shareholding of 50 percent, and comprises a 20-year exclusive distribution agreement.

 

"As part of our Asia strategy, we have made no secret that we wish to enter the Philippines as the insurance market is highly attractive with a population of around 100 million people, a fast growing middle class and low insurance penetration," said Gary Crist, Ageas Asia CEO.

 

"The potential is huge, given that the current life insurance penetration rate of around 1.5 percent is one of the lowest is Asia," Crist added.

 

The initial capitalization of P2 billion is double the minimum regulatory capital required by the Insurance Commission for a new company in the Philippines.

 

EastWest Bank noted that future funding will depend on how the business will perform.

 

"We have always viewed bancassurance as an integral part of our business model," said Tony C. Moncupa, EastWest Bank president and CEO.

 

"We see it as a necessary ingredient to have complete product offerings for the financial services needs of our target market segments," Moncupa added.

 

The company will offer tailor-made insurance solutions to bank customers, specifically the consumer and middle market corporate clients.

 

The joint venture is subject to regulatory approvals. – VS, GMA News