Philippine National Bank (PNB) led by bankero Florida Casuela is infusing P392 million in additional capital to its life insurance joint venture with global financial services provider Allianz.
The additional capital infusion to Allianz PNB Life Insurance Inc. approved by the bank’s Board of Directors is subject to regulatory and other necessary approvals.
This is on top of the P245 million infused by the bank owned by taipan Lucio Tan in March last year to enable the insurance provider to remain “comfortably above the minimum regulatory and liquidity requirements.”
Under Republic Act 10607 or the amended Insurance Code of the Philippines, insurance providers are required to have a paid up capital of at least P1.3 billion by the end of 2022.
The regulator, through the Insurance Commission, has been considering seeking amendments to RA 10607 to keep the prevailing net worth requirement until end-2022 instead of further raising it to P1.3 billion as the law provides.
Allianz acquired a 51 percent stake in PNB Life Insurance Inc. in December 2015. The joint venture was later renamed Allianz PNB Life after the transaction was completed in June 2016.