Malayan Teams With Rizal on Bancassurance
Malayan Insurance Co. Inc., the largest Philippine nonlife insurer, said it will team up with its Yuchengco Group of Companies affiliate Rizal Commercial Banking Corp. to develop bancassurance business.
Malayan Insurance is a member company of the Malayan Insurance Group of Insurance Cos., part of the local conglomerate YGC. Rizal Commercial said it has signed an agreement to purchase a 5.64% equity stake in MICO in order to develop its bancassurance business for marketing nonlife insurance products with Malayan Insurance, subject to the approval of the Monetary Board of Bangko Sentral ng Pilipinas in the Philippines.
Under the agreement, Rizal Commercial will purchase the equity stake in MICO through a 638.3 million peso (US$13.2 million) share-swap deal, in which Rizal Commercial will give the 41.99 million of its shares to MICO in exchange for 169,059 MICO equity shares. Rizal Commercial shares are valued at 15.20 Philippine pesos per share and MICO equities shares at 3,775.60 pesos per share, according to a notice filed with the Philippine Stock Exchange.
According to Philippine law, a bank must own at least 5% of a company whose products it would be selling. In compliance with the law, Rizal Commercial could sell Malayan Insurance’s nonlife products through its branches following the Philippine regulator’s approval.
Apart from the newly formed bancassurance partnership with Malayan Insurance, RCBC earlier entered a bancassurance agreement with another YGC affiliate, Great Pacific Life Assurance Corp., for life insurance.
Founded by Don Enrique T. Yuchengco in 1946, Malayan Insurance provides fire, marine cargo and hull insurance, aviation insurance, motorcar, property/casualty, personal accident and surety.
—Rebecca Ng
BESTWEEK ASIA/PACIFIC
17 March, 2009 Issue 14
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