MANILA, Philippines - The Philippine American Life and General Insurance Company ("Philam Life"), the country's number one life insurance company, bought 5% stake in Philam Equitable Life Assurance Corporation (PELAC) from Banco de Oro ("BDO") on February 28, 2011.
PELAC was a bancassurance joint venture between Philam Life and Equitable PCI Bank (EPCIB). When BDO acquired EPCIB, the 5% ownership stake that EPCIB had in PELAC was transferred to BDO.
Philam Life and BDO's bancassurance agreement expired last year and the two companies mutually decided to cease their bancassurance partnership. Bancassurance is a channel to sell insurance products through bank branches.
PELAC policy owners will continue to be serviced in all Philam Life branches nationwide.
Philam Life continues to strengthen its bancassurance arm through a joint venture forged with Bank of the Philippine Islands (BPI) on November 27, 2009. Through the joint venture, Philam Life acquired a majority stake (51%) in Ayala Life Assurance Inc. (Ayala Life). Ayala Life, which ranked as one of the Top 5 life insurance companies in 2009, has since been renamed as BPI-Philam Life Assurance Corp. (BPI-Philam).
Through the joint venture BPI-Philam, Philam Life gains exclusive access to BPI's extensive branch network of more than 800 branches and 1,500 ATMs serving over 3 million customers nationwide. Today, BPI-Philam is the leading bancassurance company in the Philippines in terms of total new premiums.