European financial services provider Allianz SE has completed the acquisition of 51 percent of Philippine National Bank subsidiary PNB Life Insurance Inc., having obtained a majority of the stocks and management control of the local insurer.
In a disclosure to the Philippine Stock Exchange on Tuesday, PNB said the sale of its subsidiary resulted in the creation of Allianz-PNB Life Insurance Inc. The joint venture in bancassurance will provide the German firm access to millions of PNB customers.
“A key part of the joint venture between Allianz and PNB is a 15-year bancassurance agreement, which will provide Allianz exclusive access to more than 4 million customers, across 669 PNB and PNB Savings Bank branches in the Philippines,” the local lender said.
The Lucio Tan-led bank sold 12,750 shares of stock of PNB Life to Allianz on December 21 last year, translating to the majority of the shares to the Munich-based company. Olaf Kilesow will stand as CEO of the new joint venture.
PNB Life traced the majority of its income in 2014 to bancassurance, essentially the sale of insurance products in tandem with banks.
PNB Life now stands as the 10th life insurer in the country. Its parent firm PNB is one of the oldest and largest private banks in terms of assets and deposits.