NONLIFE INSURERS FPG Insurance Co., Inc. and The Mercantile Insurance Co., Inc. have consented to combine, as stated in a joint announcement dated Aug. 15.
The amalgamated entity will be called FPG Mercantile and will possess an estimated aggregate gross written premiums (GWP) of P10 billion, positioning it among the top four nonlife insurance providers in the Philippines, they mentioned.
“The merger unites two established market participants… FPG Mercantile will be poised to innovate, broaden digital services, and navigate the shifting regulatory environment in the Philippines,” the firms stated.
“The united entity… will utilize the benefits of both firms to provide improved insurance solutions, enhanced financial stability, and superior customer support to millions of Filipinos.”
The deal is anticipated to conclude by October, pending regulatory sanctions.
Data from the Insurance Commission indicated that FPG, part of the Zuellig Group of Companies, was the fifth largest nonlife insurer by GWP in 2024 with P6.17 billion. In contrast, Mercantile was positioned 13th with GWP of P3.27 billion.
FPG recorded a net loss of P147.81 million in 2024 and held assets valued at P10.52 billion, while Mercantile reported a net profit of P111.596 million last year with P6.1 billion in assets.
FPG President and Chief Executive Officer Gigi Pio de Roda will steer the merged entity, the insurers reported.
“This collaboration is a significant shift for the Philippine insurance sector. By combining our resources and skills, we will form a more robust organization capable of offering comprehensive protection to our clients amidst increasing economic uncertainties and climate challenges,” Ms. Pio de Roda stated.
David Zuellig, FPG regional chairman, expressed that the merger will forge a “powerhouse” market leader.
“Joining forces with FPG enables us to expedite our growth and provide even greater value to policyholders throughout the archipelago. This merger revolves around synergy, innovation, and an intensified commitment to protecting the futures of our customers,” Mercantile Chairman Romulo I. Delos Reyes, Jr. remarked.
According to Gerard Pennefather from Huntington, strategic advisors to FPG, the deal is “potentially the largest nonlife insurance agreement in the Philippines.”
The companies indicated that there will be no immediate alterations to their existing policies or customer services.
“The merged organization is dedicated to supporting its workforce, ensuring a seamless transition for employees of both firms. FPG Mercantile will provide professional development programs and career growth opportunities to its combined workforce of approximately 700,” they concluded. — AMCS