Philippines’ Philam Life Integrates Into AIA Group

AIA Group Ltd. [55661] said it has completed the acquisition of a 99.78% stake in Philippine American Life and General Insurance Co. [84311] from parent American International Group Inc. [58702], with regulatory approvals.

Philamlife will retain its existing brand in the Philippines and will be integrated into AIA Group, which earlier announced a plan to list on the Hong Kong Stock Exchange.

The integration not only provides stability to build business but also to take the Philamlife brand to a next level, capitalizing on AIA Group's synergies, according to Trevor Bull, president and chief executive officer of Philamlife.

The Philippines is "an exciting market with strong fundamentals and significant potential," especially in life insurance and wealth management on which Philamlife is focusing, said Bull in a statement.

Established in 1947 as a leading insurer in the Philippines, Philamlife offers income protection, retirement, investment and education services, and health, personal, accident, group life and credit life insurance, supported by a nationwide network of agents and offices.

Philamlife also completed its acquisition of a 51% stake in Ayala Life Assurance Inc. [89273], which will be renamed to BPI-Philam Life Assurance Group. The new life insurance firm will serve as the bancassurance platform for both Philamlife and Bank of the Philippine Islands (BestWire, Dec. 3, 2009).

(By Iris Lai, Hong Kong bureau manager: Iris.Lai@ambest.com)