Update: AIA Life Units Announce Leadership Changes in Philippines and China

Philippine American Life and General Insurance Co. [84311], the largest life insurer in the country, said President and Chief Executive Jose L. Cuisia Jr. is retiring effective Aug. 1, upon reaching the mandatory retirement age of 65.

Trevor Bull, who was formerly the managing director of Tata AIG Life Insurance Co. [90169] in India, will succeed Cuisia as president and CEO, subject to local regulatory approvals. Cuisia will assume a new role as vice chairman of the Philamlife board, said the insurer.

Apart from the management change at Philamlife, AIA China is also undergoing a management change. Jacky Chan has been appointed chief executive of AIA Hong Kong and Macau, and John Cai was named CEO of AIA China.

The company said Cuisia's departure marks end of an era. With 16 years of management and a successful record of further strengthening Philamlife's leadership in the insurance industry in the Philippines, Cusia oversaw the insurer's diversification into affiliate businesses including mutual funds, bancassurance and property management.

During his service, the insurer said Cuisia has been active in the life insurance sector, having served as president of the Philippine Life Insurance Association (PLIA).

Cuisia's successor, Bull, has more than 30 years of experience as a life insurance professional, having held various senior management positions across Europe, Japan and Korea.

The insurer said that, prior to the appointment to Philamlife, Bull led Tata AIG Life, the life joint venture between India's Tata Group and American International Group Inc. (AIG) [18540], to become one of the fastest growing life insurers in India.

Mark Wilson, group CEO and president of American International Assurance (AIA) [55661], said Cuisia built "a robust business infrastructure which will enable a smooth integration of Philamlife into the AIA group." Bull's "successful" record in the highly competitive life insurance markets of India and Korea makes him "uniquely suitable" for the leadership role at Philamlife, said Wilson.

Philamlife has had four presidents throughout its 62-year history. Earl Carroll served between 1947 to 1969; Cesar Zalamea served between 1969 to 1981; Rodrigo de los Reyes held the post between 1981 to 1993, followed by Cuisia.

Philamlife, the life subsidiary of AIG in the Philippines, offers income protection, retirement, education, investment, health, personal accident, group life and credit life solutions for more than 1 million individual and corporate policyholders, and maintains a network of more than 200 offices and sales agencies across the country.

Its affiliate businesses also include diversified financial services in life insurance, pre-need plans, bancassurance, healthcare, asset management, property management and development.

Following the credit crunch of its U.S. parent AIG, Philamlife plans to be integrated into the AIA group, the Asian life subsidiary of AIG headquartered in Hong Kong, subject to regulatory approval.

Cuisia earlier said that Philamlife's joining the AIA group will provide access to the resources and Asia-wide network of the region's market leader (BestWire, May 8, 2009).

Philamlife recorded net income of 3.3 billion Philippine pesos (US$69 million) in 2008, representing record growth of 186.6% from the previous year. It also recorded investment income of 10.2 billion pesos, up 10.9% from 2007.

AIA China

AIA's Hong Kong-based spokeswoman, Bonnie Wu, confirmed that Cai has been appointed CEO of AIA China, subject to regulatory approvals. She added that Chan is CEO of AIA Hong Kong and Macau.

According to the China Insurance Regulatory Commission, in the first half of 2009, AIA China recorded cumulative original premium income of 3.74 billion yuan (US$547 million), and remains the largest foreign life insurer in China.

The AIA group is a leading pan-Asian life insurer with 90-year history, providing life insurance, retirement planning, accident and health insurance, as well as wealth management solutions for more than 20 million customers in the region through its 250,000 agents and 20,000 employees across 15 geographical markets.

In early July, AIA renamed its Asian headquarters building, AIG Tower at 1 Connaught Road Central, Hong Kong, as AIA Central.

The insurance group's CEO and president, Wilson, said "the renaming is an important step and a symbolic representation of the AIA group's separation from AIG. We are very proud to have our name clearly identified with it and highlight our continuing ownership of the building."

He added, AIA Central's location has special historic significance and emotional resonance for the group because it "occupies the same site where AIA’s first offices in Hong Kong were established in the 1930s."

In May, AIG said it will accelerate AIA positioning as an independent entity and seek a public listing on an Asian stock exchange for AIA, depending on market conditions and regulatory approval (BestWire, May 18, 2009).

Currently, the AIA group has branch offices, subsidiaries and affiliates in Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

(The article is being retransmitted to clarify that Cai and Chan have been named as CEO of AIA China and AIA Hong Kong and Macau, respectively).

(By Rebecca Ng, Hong Kong news editor: [email protected])