PNB sells 40% stake in Benlife

MANILA, Philippines - Lucio Tan-led Philippine National Bank (PNB) has sold its 40% stake in Beneficial PNB Life Insurance Co. Inc. (Benlife) so it can focus on its bank assurance business. In a disclosure to the stock exchange, the bank said it inked an agreement with FMF Development Corporation and Merje Trading Inc. last week for the sale of PNB’s stake in the insurance firm. PNB’s divestment will allow it to concentrate on its bancassurance business or the sale of insurance products in its branches nationwide through PNB Life Insurance Inc. In 1996, then government-owned PNB acquired 40% of Beneficial Life Insurance Co. to form Benlife. PNB Life Insurance, on the other hand, was the former New York Life Insurance Philippines Inc. that was formed through a partnership between New York Life International LLC. and Allied Banking Corporation. New York Life became PNB Life Insurance in 2007 after PNB and Allied Bank revealed plans to merge.- BusinessWorld