In a disclosure to the Philippine Stock Exchange, PNB said the joint venture company will operate under the name of “Allianz PNB Life Insurance, Inc.” PNB Life Insurance (PNB Life) is the tenth largest life insurance company in the Philippines, with new business premiums of P3.75 billion (72 million euro) in 2014. An important part of the joint venture between Allianz and PNB is a 15-year bancassurance agreement, which will provide Allianz exclusive access to more than 660 branches located nationwide, and four million customers. Under the terms of the agreed transaction, Allianz will acquire 51 percent and management control of PNB Life. “The Philippines is a very fast-growing insurance market supported by a healthy economic outlook and a large, young population of over 100 million people”, said Allianz Asia-Pacific chief executive George Sartorel. He added that “the transaction with PNB is a unique opportunity to enter into the market with an established distribution network, and it is part of building our strategic business platforms.” “PNB has always provided innovative care to the Filipinos. Allianz will bring in a lot of experience, technology and new ideas that will benefit our customers and the Philippine market”, said PNB president Reynaldo A. Maclang. Maclang noted that “this venture will allow us to offer world-class protection products and services that cater to the diverse needs of our customers.” “The strong interest we drew from Allianz and other candidates was a welcome validation of the successful turnaround of PNB Life that we started six years ago,” said PNB Life president Esther C. Tan, who took on the role in October 2009. She said “we have grown from borderline relevance to a top ten player, and a major profit engine for PNB and the Lucio Tan Group as a whole. This transaction is the next big step towards our vision to be a leading provider of financial security to Filipinos worldwide.” The Philippines market offers significant growth potential for insurance due to low penetration, with premiums at just 1.7 percent of GDP in the Philippines compared to 7.4 percent for Western Europe, 7.6 percent for Singapore or 14.3 percent for Hong Kong. In the last five years (2010- 2015) annual premium growth has averaged 19.8 percent in life insurance. In recent years bank distribution has become a dominant channel for insurance products, with banks representing 37 percent of premiums written in 2014 in the Philippines.
German financial insurance company, PNB Life Insurance , has acquired 51% of PNB Life Insurance ( Allianz PNB Life Insurance Inc. ) PNB Life Insurance and entered into a 15-year exclusive distribution partnership; the sale was finalised on December 21 . The joint venture company will be named Philippine National Bank's This deal will provide Allianz with exclusive access to over 660 branches located nationwide, and 660 customers.