BDO completes takeover of Generali unit

MANILA, Philippines - Listed BDO Unibank Inc. has completed the take over of Generali Pilipinas Holdings Company Inc. (GPHC) as part of its strategy to diversify into the life insurance sector.

The country’s largest bank owned by retail and banking magnate Henry Sy informed the Philippine Stock Exchange (PSE) it has recently secured final regulatory approval that allowed it to acquire full interest in GPHC.

Nestor Tan, president and CEO of BDO, said the bank is re-focusing its insurance strategy to align with its thrust to solidify its presence in the broad-based middle-income market.

“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,” Tan said.

GPHC created in March 1999 through a partnership between BDO and Generali of Italy is the parent firm of life insurer Generali Pilipinas Life Assurance Co. (GPLAC) and non-life insurer Generali Pilipinas Insurance Co. (GPIC).

By assuming full control of the GPHC insurance operations, Tan said BDO would be able to adapt more readily to the demands of its target markets.

GPLAC would be renamed BDO Life Assurance Co. Inc. while Generali would relaunch GPIC as life insurer Generali Life Assurance Philippines Inc. (General Life Philippines).

Over the past 15 years, Generali has built up a solid track record working in partnership with BDO.

“Generali has an extensive network of quality service providers and strong local relationships in the country. It intends to leverage these strengths and grow its group and retail businesses for the long term,” it said.

Generali Life Philippines would provide employee benefit solutions via group life and medical insurance to multinational corporations, as well as small and medium enterprises.

The life insurer also plans to expand its product offerings to include individual life products.

“With Generali’s international experience and product and service innovation, Generali Life Philippines aims to become a significant player and cater to the insurance and financial needs of the Filipinos,” it added

BDO clarified the transaction with Generali would have no impact whatsoever on the terms and conditions of all existing GPLAC individual and group policies.

“These policies will remain in their present form and will be fully honored notwithstanding the change in ownership. GPLAC will continue to support and service all existing policyholders as provided for under their in force policies,” BDO said.

The Sy-led bank is the country’s largest bank in terms of assets and has the largest distribution networks with more than 1,000 operating branches and over 3,000 ATMs nationwide. It also has a branch in Hong Kong as well as 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

On the other hand, the General Group is among the world’s leading insurers with total premium income exceeding €74 billion and over 76,000 employees across the world and a presence in more than 60 countries.