PHILIPPINE NATIONAL Bank (PNB) and PNB Holdings Corp. have sold all of their shares worth P1.5 billion in the lender’s nonlife insurance arm PNB General Insurers Co., Inc. (PNBGen) to Alliedbankers Insurance Corp. (ABIC) as the Lucio Tan group continues to consolidate its businesses.

In a disclosure to the local stock exchange on Monday, the Tan-led lender said its board of directors last week gave it the go signal sell all of their shareholdings in PNBGen to ABIC, subject to the necessary approvals from regulators.

“We wish to advise the Exchange that during its meeting held today, December 11, 2020, the PNB Board of Directors approved and confirmed the sale of 100% shareholdings of PNB and PNB Holdings Corp. in PNB General Insurers Co., Inc., to Alliedbankers Insurance Corporation for a total purchase price of P1,523,374,730.48, subject to regulatory and other necessary approval/s,” the statement read.

PNBGen is the nonlife insurance company of PNB, while the ABIC is the non-life insurance firm of LT Group, Inc.

PNB President and CEO Jose Arnulfo “Wick” A. Veloso said the sale is part of LT Group’s efforts to consolidate its nonlife insurance businesses.

“This consolidation brings together the geographic reach of PNBGen through the network of the bank and the product offerings and expertise of Alliedbankers,” Mr. Veloso said in a text message on Monday.

“This will build a bigger and financially stronger entity that is best positioned to be a responsible industry partner in line with the Insurance Commission’s (IC) aim to build a strong nonlife insurance industry,” he added.

With a net income of P126.861 million last year, ABIC was the 10th top performer in the non-life insurance industry, based on the unaudited quarterly financial reports submitted to the IC.

PNBGen meanwhile ranked 13th in 2019 with a net income of P101.6 million.

Based on net premiums written, PNBGen ranked 24th (P623.89 million) last year while the ABIC placed 28th (P473 million), based on separate data from the IC.

PNB saw its net income rise by four percent to P2.5 billion in the third quarter. Its assets grew 14% to P1.3 trillion as of end-September from P1.14 trillion at the end of 2019.

Shares in PNB went up by 25 centavos to P30.70 each on Monday from its previous close of P30.45 apiece. — Beatrice M. Laforga