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Guide to the Classics: Voltaire’s Candide — a darkly satirical tale of human folly in times of crisis

“Italy had its renaissance, Germany its reformation, France had Voltaire,” the historian Will Durant once commented.

Born François-Marie Arouet, Voltaire (1694-1778) was known in his lifetime as the “patriarch” of the French enlightenment. A man of extraordinary energy and abilities, he produced some 100 volumes of poetry, fiction, theater, biblical and literary criticism, history and philosophy.

Among his myriad works, Voltaire’s Candide, or Optimism (1759) is widely recognized as the masterpiece. A darkly satirical novella taking aim at human folly, pride, and excessive faith in reason’s ability to plumb the deepest metaphysical truths, it remains as telling in this era of pandemics and wild conspiracy theories as when first published.

In his earlier works Voltaire had propounded an almost naive optimism, but the decade from 1749-1759 was not easy for the philosopher-author.

Personally, his great love, Émilie du Châtelet had died in 1749. Politically, he had been forced from exile to exile for his criticism of monastic and clerical privileges in France and his “Essay on Universal History, the Manners, and Spirit of Nations” (1756), which treated Christianity as just one world religion, rather than the final revealed truth.

In 1755, meanwhile, on Nov. 1, a huge earthquake had struck the Portugese capital, Lisbon, followed by a tsunami. Within minutes, tens of thousands were dead.

The recriminations soon began. Protestants saw in Lisbon’s destruction divine judgement on Catholicism. Catholics proposed, with equal implausibility, the especial sinfulness of the Lisbonites as the disaster’s cause. Pyres were erected in the streets to burn heretics, as scapegoats for the disaster.

This combination of senseless death and even more senseless human responses outraged Voltaire. His first response was the impassioned “Poem on the Lisbon Disaster” of 1755:

As the dying voices call out, will you dare respond

To this appalling spectacle of smoking ashes with,

[…] ‘God is avenged. Their death is the price of their crimes’?

Then, several years later, came Candide.

As his name suggests, Voltaire’s hero, Candide, is a simple lad. Raised in a magnificent castle in Westphalia, in North-Western Germany, he is moved by just two passions. The first is abiding love for his sweetheart, Cunégonde.

The second is admiration for his teacher, Pangloss (“all tongue”), an exalted Professor of “métaphysico-théologo-cosmolonigologie” possessed of the happy ability to explain everything that happens, despite appearances, as “for the best.”

“It is demonstrable,” said he, “that things cannot be otherwise than as they are; for […] all is necessarily for the best end. Observe, that the nose has been formed to bear spectacles — thus we have spectacles. Legs are visibly designed for stockings — and we have stockings […] Pigs were made to be eaten — therefore we eat pork all the year round. Consequently, they who assert that all is well have said a foolish thing, they should have said: all is for the best.”

In Pangloss, Voltaire is satirizing German philosopher Gottfried Wilhelm Leibniz and the British poet, Alexander Pope.

These two men had defended what the former called “theodicy”: the idea that a perfect God could only have created the best possible world. Hence, the human perception that events like pandemics, earthquakes, massacres, and tsunamis are bad must be mistaken.

Candide’s fate is set up by Voltaire as a reductio ad absurdum (reduction to absurdity) of this optimistic theory. Our hero is first expelled from his Edenic childhood garden, when Cunégonde’s father comes upon she and Candide illicitly experimenting in what Voltaire delicately calls “natural philosophy.”

In Candide’s ensuing wanderings around Europe and the Americas, Voltaire treats his hero to a veritable guided tour of all of the evils of war, lust, avarice, vanity, and colonialism.

Fleeing war, rapine, and zealotry in Bulgaria and Holland, Candide arrives in Lisbon just in time for the earthquake. He is selected for execution by fire as a heretic, before escaping to save Cunégonde from disputing, lustful representatives of the West’s two great biblical faiths, Judaism and Christianity.

The lovers flee together to the Americas. In Buenos Aires, however, the Spanish governor seizes Cunégonde for his wife. Candide and his servant, Cacambo, are forced to flee through yet more bloody misadventures in the new world.

In a rightly famous passage, which finally sees Candide recant of his teacher Pangloss’ theodicy as the “abomination […] of maintaining that everything is right when it is wrong,” they come upon a crippled African slave whose masters are Dutch merchants in Surinam:

“Yes, sir,” said the negro, “it is the custom. […] When we work at the sugar-canes, and the mill snatches hold of a finger, they cut off the hand; and when we attempt to run away, they cut off the leg; both cases have happened to me. This is the price at which you eat sugar in Europe.”

To this Europe, the increasingly disillusioned Candide returns. The riches he acquired in the new world are soon fleeced by cunning social climbers in Paris and Venice. He is reunited with Pangloss, who has recanted nothing of his optimism, despite being enslaved, flogged, hanged, and brutally maimed, explaining that “I am a philosopher and I cannot retract […]”

Soon enough, Candide also hears news that Cunégonde is now a slave in Turkey, after her own litany of unlikely sufferings. So, he hits the road one last time. Reunited at last with his half-broken beloved, they retire to a little farm with their friends near Constantinople.

Here, despite everything, Pangloss still sometimes comes to mindlessly philosophize, as the story famously closes:

“There is a concatenation of events in this best of all possible worlds: for if you had not been kicked out of a magnificent castle for love of Miss Cunégonde: if you had not been put into the Inquisition: if you had not walked over America: […] if you had not lost all your sheep from the fine country of El Dorado: you would not be here eating preserved citrons and pistachio-nuts.”

“All that is very well,” answered Candide, “but let us cultivate our garden.”

In the entry on “wit” (esprit) in his famous Philosophical Dictionary of 1764, Voltaire reflects that it is:

the art either of bringing together two things apparently remote, or of dividing two things which seem to be united, or of opposing them to each other […]

It is the art of Voltaire’s Candide to leave readers unsure whether they should be weeping, screaming, laughing, or all at the same time. Atrocious sufferings are recounted with the innocence of a children’s fairy tale.

Elevated questions of metaphysical philosophy, which for a century had divided the greatest Western minds, are brought crashing down to earth amid the clamors of warring armies, collapsing cities, inhumane barbarism and slavery.

It is easy to see why critics have read Voltaire’s novella as a document written in despair. But the laughter of the book suggests this is only half the story.

Voltaire is enraged at human cruelty and idiocy. He scorns the Panglossian pride, which pretends to justify the unjustifiable with blithe self-assurance and vain sophistries. He despises any theory clever enough to explain away human suffering, but not humane enough to decry it.

But this is because he believes human beings can be better. For Voltaire, we can and should challenge all fair-sounding ideologies reconciling us to indignities visited on others we would not accept for ourselves.

Stateless, Voltaire had ended up in 1758 in a rural retreat in Ferney, near the Swiss-French border. At the tender age of 65, he embarked on a legendary campaign against religious fanaticism — associated with his famous slogan: Écrasez l’infâme! (let us crush the infamous!).

His Treatise of Toleration of 1763, was sparked by anger at the wrongful execution of Protestant Jean Calas by Catholic zealots in Toulouse.

In 1778, the legendary author and advocate for multi-faith society finally returned to Paris, to be hailed as a hero. Fatigued by the journey, Voltaire died soon after, claiming: “I die adoring God, loving my friends, not hating my enemies, and detesting superstition.”

In 1791, the revolutionary government honored Voltaire as an inspiration. His remains were re-interred in the Pantheon.

There is no pandemic in Voltaire’s Candide, and today’s conspiracy theories make Pangloss’ inhumane, hyper-rationalism look balanced.

But there are few other books you could read with greater sympathy in 2021 than this little gem of irony, calamity, and restrained outrage at human folly and prejudice. And none that are more cutting and entertaining.

 

Matthew Sharpe is an Associate Professor in Philosophy at Deakin University.

PLDT to seek permanent solution to ROW issues

PLDT, Inc. said it will continue to work with the government to find a permanent solution to the right-of-way (ROW) issues that prevent telecommunications companies from constructing information and communications technology (ICT) infrastructure projects along national roads.

Department of Public Works and Highways (DPWH) Secretary Mark A. Villar issued Department Order No. 29 on March 23 “to facilitate the erection of infrastructure that will allow speedy expansion of telecommunication services and facilities while ensuring public safety, availability of government’s ROW, and the structural integrity of roads and bridges.”

Mr. Villar’s department order allows telcos “to construct and undertake excavations and/or restoration works for ICT infrastructure projects within the allowable ROW limits of the national roads.”

But the order will automatically cease application “after the lapse of three years from March 23, 2021,” according to PLDT.

“We will be relentless in securing government issuances that will provide a more permanent solution to this ROW issue,” Aileen D. Regio, first vice-president and head of PLDT’s Regulatory and Strategic Affairs, was quoted as saying in an e-mailed news release on Tuesday.

PLDT said Mr. Villar’s order should help speed up the rollout and assist in ensuring the “timely” maintenance of its fiber infrastructure as well as Smart Communications, Inc.’s cell sites.

“This collaboration with the government is part of PLDT and Smart’s initiatives to improve the maintenance and operations of our network facilities and advocate for the improvement of the regulatory environment to boost the country’s digital infrastructure,” Smart Vice-President and Head of Regulatory Affairs Roy D. Ibay said.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Harvey Weinstein appeals sex assault conviction, seeks new trial

Harvey Weinstein — GEORGES BIARD/EN.WIKIPEDIA.ORG

FORMER Hollywood producer Harvey Weinstein on Monday asked a New York state appeals court to throw out his conviction for sexual assault and rape and grant a new trial, saying the trial judge made several errors that denied him an impartial jury.

Mr. Weinstein, 69, was sentenced in March 2020 by Justice James Burke of Manhattan criminal court to 23 years in prison for assaulting former production assistant Mimi Haleyi and raping former aspiring actress Jessica Mann.

Mr. Weinstein has denied any nonconsensual sexual encounters.

His conviction was seen as a watershed moment in the #MeToo movement against sexual abuse and harassment.

Mr. Weinstein makes seven arguments in his bid to overturn his conviction, from seating a juror that Mr. Weinstein’s lawyers accused of being grossly unqualified to an unduly harsh sentence.

His lawyers also argue he was denied a presumption of innocence when Mr. Burke allowed the jury to hear testimony from three women who alleged Mr. Weinstein assaulted them even though their accusations did not result in a criminal charge.

The three women described for the jury what prosecutors characterized as Mr. Weinstein’s signature pattern of behavior: luring women to hotel rooms or his apartment to discuss film roles, then attacking them.

Mr. Weinstein’s lawyers had asked Mr. Burke during the trial to bar two of the three from testifying.

Jurors were instructed that the three women’s testimony could only be used as evidence of Mr. Weinstein’s intent, not propensity to commit sexual assault.

Mr. Weinstein said the third-degree rape charge should be dismissed because the alleged misconduct occurred too long ago, and a new trial should concern a single count of first-degree criminal sexual act.

Even if his conviction were overturned, Mr. Weinstein still faces charges including forcible rape in Los Angeles involving five alleged victims from 2004 to 2013. Mr. Weinstein faces up to 140 years in prison if convicted in that case. — Reuters

REITs ‘at the forefront’ of region’s real estate transformation

COMPANY HANDOUT

REAL ESTATE investment trusts (REITs) may be “at the forefront of the [real estate] industry’s transformation” as the pandemic shifts market demand, according to Asia Pacific Real Estate Association’s (APREA) market outlook 2021 report.

“Better buildings will, no doubt, form the core of the post-pandemic city. Asset owners and landlords will need to be proactive with measures to entice shoppers and office workers back into their multimillion-dollar investments,” APREA said in its report.

APREA said REITs provide hope for the real estate industry in Asia-Pacific, as these are “likely to be sustained by the region’s emerging markets.”

“We do expect the Asia-Pacific market to grow from the current $300-billion market cap to at least a trillion US dollars once China and India’s REIT markets are established,” APREA Chief Executive Officer Sigrid Zialcita said in an online briefing on Tuesday.

APREA also noted that the Philippines listed its first REIT “at the height of the pandemic last year,” with an additional listing added this year, with a couple more in the pipeline.

The country’s business process outsourcing (BPO) sector is seen as a catalyst for the industry.

“If you look at REITs, the first REIT was established in the Philippines and the portfolio is really on the office side just like many of the fast growing markets and if you look at the asset itself, the tendency is really consisting of the BPO sector,” Ms. Zialcita said. — Keren Concepcion G. Valmonte

Audio app Clubhouse floats payments feature for creators

AUDIO-CHAT app Clubhouse said on Monday it will launch a monetization feature for its creators on the platform and that it will not receive any payment from it.

Starting Monday, all users will be able to send payments through the platform, Clubhouse said. The feature to receive payments will initially be available only to a small test group, and later rolled out to other customers.

Users can send payment to Clubhouse creators who have the feature enabled, by tapping a “Send Money” option. The audio-based social network company said a small card processing fee will be charged by its payment processing partner, Stripe.

The San Francisco-based company, whose app lets people gather in audio chatrooms to discuss different topics, requires newcomers to be invited by existing users before they can join.

The app saw its global user numbers soar after Tesla Chief Executive Officer Elon Musk and Robinhood CEO Vlad Tenev held a surprise discussion on the platform.

In the year since it started, Clubhouse has faced criticism over reports of misogyny, anti-Semitism, and COVID-19 misinformation on the platform despite rules against racism, hate speech, abuse, and false information. — Reuters

PhilWeb earns P7M despite lower gaming revenues

PHILWEB Corp.’s net earnings reached P7 million for the fourth quarter of 2020, despite a decrease in per-site gaming revenues due to lockdown restrictions and health protocols implemented amid the pandemic.

“PhilWeb has been EBITDA positive since October 2020 and net income since November 2020 despite gaming venues generally averaging 60% daily revenues from pre-quarantine levels,” Edgar Brian K. Ng, president of PhilWeb, said in a statement on Monday.

Revenues for the quarter totaled P105 million, while the company generated an EBITDA (earnings before interest, tax, depreciation, and amortization) of P30 million. No comparative figures from the same period in the previous year were disclosed.

For 2020, PhilWeb and its subsidiaries trimmed their net loss attributable to the parent company by 30% to P59.51 million. Total revenues declined by 50.9% to P264.88 million from P539.86 million.

The company and its subsidiaries incurred losses before interest, tax, depreciation, and amortization worth P13.53 million, a reversal of its 2019 full-year EBITDA of P58.4 million.

The net loss of parent company PhilWeb ballooned to P542.47 million from P62.13 million the previous year.

However, Mr. Ng said: “The company is on stable ground and well positioned as we anticipate the return to economic activity in the second half of the year.”

“Our fourth-quarter 2020 results came before PhilWeb’s acquisition of 16 eBingo (electric bingo) venues and two accredited eBingo machine providers, as well as the revenue contribution of additional eGames sites incrementally converting back to our electronic gaming system at the start of 2021,” Mr. Ng said.

In March, the company said it acquired eBingo outlets and eBingo machine suppliers for P450 million and P280 million, respectively. The transaction was made to expand PhilWeb’s business, which now has a “two-fold footprint in the whole electronic gaming sector.”

Some 69 eGames (electronic games) outlets and 22 eBingo outlets of the company were said to be operational at the end of last year.

“As of today, there are 85 eGames locations utilizing PhilWeb’s electronic gaming system and 68 eBingo locations utilizing PhilWeb’s eBingo machines,” the company said.

PhilWeb is an accredited service provider of the Philippine Amusement and Gaming Corp. It recently secured approval to operate its remote gaming platform, which provides customers access to gaming products beyond its venues.

On Tuesday, PhilWeb shares at the exchange rose by 2.11% to close at P2.91 from P2.85 apiece. — Keren Concepcion G. Valmonte

UK’s Glastonbury Festival, cinemas, museums get gov’t cash to survive COVID

LONDON — Glastonbury Festival will join 2,700 museums, theaters, cinemas, and arts venues in receiving a share of 400 million pounds in grants and loans to help them survive the COVID-19 pandemic, the British government announced on Friday.

Entertainment venues across Britain were forced to close last March because of the coronavirus crisis and while some partially reopened last summer, many have remained shut since then.

Last July, the government unveiled a £1.57 billion ($2.2 billion) Culture Recovery Fund (CRF) package of grants and loans, and on Friday detailed where the latest tranche of funding would be spent.

Among the recipients is Glastonbury, the largest greenfield music festival in the world, which has been forced to cancel for two years running. It will receive £900,000.00 to help carry it through to 2022.

“This grant will make a huge difference in helping to secure our future,” founder Michael Eavis and daughter Emily said in a statement.

Tens of millions of pounds have been made available to theaters, while the English Heritage Trust, which looks after 420 historic monuments, buildings, and objects, will receive £23.4 million. The British Film Institute has also awarded 6.5 million to help independent cinemas.

The government says the CRF has helped protect more than 75,000 jobs and ensure thousands of organizations survive the COVID crisis. “Now we’re staying by their side as they prepare to welcome the public back through their doors,” culture minister Oliver Dowden said.

Under the government’s pandemic “roadmap,” it is hoped many venues will be able to reopen to live audiences from mid-May and the latest funding is designed to help theaters, museums and comedy clubs make necessary preparations.

The government was accused last month of being too slow to hand out CRF money to recipients, with parliament’s spending watchdog saying only £495 million of the first 1 billion pound tranche had been paid out by late February.

The culture department said nearly all the £1.57 billion had now been allocated. —  Reuters

APC Group incurs bigger net loss

APC GROUP, Inc. on Tuesday reported an attributable net loss of P5.87 billion last year, up 11% from a year ago, as the listed holding firm recorded a double-digit decrease in revenues.

“This decrease is mainly brought about by the lower interest income from cash and money market placements for 2020 given the also lower amount of cash,” APC told the stock exchange in a regulatory filing.

APC posted a 75% fall in total revenues to P1.27 million from P4.97 million the year before.

The firm also gave updates on the operations of its various units, which include Aragorn Power and Energy Corp. (APEC), APC Energy Resources, Inc., and PRC-Magma Energy Resources, Inc.

As of March 1, APEC remained in the exploration stages. APC Energy, APC Mining Corp., APC Cement Corp., and PRC Magma are in the pre-operating stages.

APEC in 2018 secured government certification for its geothermal project, which was named by the Department of Energy as an energy project of national significance. This means that the project, during its pre-development stage, qualifies for all the rights and privileges under Executive Order 30 series 2017, which created the Energy Investment Coordinating Council.

On Tuesday, shares in APC rose by 2.6% to close at P0.385 apiece. — Angelica Y. Yang

Gov’t makes full award of fresh 5-year bonds on strong demand

THE BUREAU of the Treasury fully awarded the five-year bonds it offered on Tuesday as demand for government securities remained strong.

THE GOVERNMENT made a full award of the fresh five-year Treasury bonds (T-bonds) it auctioned off on Tuesday amid strong demand.

The Bureau of the Treasury (BTr) borrowed P35 billion via the five-year T-bonds on Tuesday as the offering was over twice oversubscribed, with bids totaling P80.7 billion.

The notes fetched a coupon rate of 3.375%, lower than the 3.3534% quoted at the secondary market on Tuesday for the tenor, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website.

The last time the BTr offered the five-year tenor was on May 27 last year, when it made a full P30-billion award of reissued T-bonds at a lower average rate of 2.676%.

National Treasurer Rosalia V. de Leon said the BTr fully awarded its offer of fresh five-year papers as the tenor fetched a low rate on the back of strong appetite for government bonds.

Meanwhile, a bond trader said the coupon rate fetched for the five-year bonds fell within market expectations but was at the higher end of the range, which reflects the government’s need for fresh funds amid the prolonged and worsening coronavirus outbreak.

“The auction saw a strong demand but at a price the market wanted, so basically, it shows that the government is really set to borrow despite higher rates. It also took them up to the 3.475% bids just to complete the P35 billion, meaning the rest of the “demand” wanted higher rates,” the trader said in a Viber message on Tuesday.

The government increased its borrowing program for the month and is set to tap the US debt market soon before rates spike to help fund an expected increase in spending for its pandemic response.

The hard lockdown enforced in Metro Manila and nearby four provinces was extended for another week until April 11 as coronavirus cases continue to spike. The Health department reported 8,355 new cases on Monday, bringing the total number of infections to 803,398.

The government has already given P23 billion to local government units for P1,000 in cash aid for low-income Filipinos in areas covered by the tighter lockdown.

The Treasury wants to raise P170 billion from the local bond market this month, broken down into P100 billion in Treasury bills to be offered weekly and P70 billion via fortnightly auctions of T-bonds.

The government is looking to borrow P3 trillion this year from domestic and external lenders to help fund its budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

Kyoto’s earliest cherry blooms in 1,200 years point to climate change, says scientist

TOKYO — The famous pink cherry blossoms of Kyoto reached full bloom this year on March 26, the earliest date in the 12 centuries since records began, according to a Japanese university.

The earlier flowering indicates climate change, said Yasuyuki Aono, a professor of environmental science at Osaka Prefectural University, who has compiled a database of records of the full blooms over the centuries.

Global temperatures in 2020 were among the highest on record and rivaled 2016 as the hottest year ever, according to international data compiled by the World Meteorological Organization and released in January this year.

“As the temperatures rise the onset of flowering is earlier,” Mr. Aono told Reuters in a Zoom interview.

Osaka University records include court documents from Imperial Kyoto, the ancient capital of Japan, as well as medieval diaries.

Cherry blossoms have long historical and cultural roots in Japan, heralding spring and inspiring artists and poets through the centuries. In modern times, people gather under the cherry blooms every spring for hanami (blossom-viewing) parties that are often well lubricated with sake and can last for days.

With a state of emergency to curb coronavirus infections lifted across all areas of the country many people flocked to popular viewing locations last weekend, although the numbers were lower than in normal years.

Kyoto, no longer the Japanese capital but a beacon of Japanese culture and manners, has long been famous for its temples and blossoms, which have been a valuable tool for observing long-term changes in mean temperatures.

Scientists have often pointed to the earlier flowering times of species such as cherry blossoms as indicators of global warming. The Kyoto record is described in one study as “probably the longest annual record” of biological life cycles from anywhere in the world. —  Reuters

Pangilinan group to provide meals to gov’t hospitals in Metro Manila

METRO PACIFIC companies and foundations said they have expanded their daily distribution of meals for medical frontliners to government hospitals in Metro Manila.

“What started out as a simple treat day for Metro Pacific Hospital frontliners, transformed into a daily commitment to provide them with the needed sustenance to continue their fight to save the lives of Filipinos. The initiative expanded to include government hospitals within the Metro to further broaden the warranted gratitude for COVID frontliners,” the group said in an e-mailed statement.

On Sunday, companies and foundations under the “MVP Group of Companies,” distributed over 7,800 meals to nine Metro Pacific hospitals in Metro Manila.

Their beneficiaries also included government hospitals in Quezon City: East Avenue Medical Center, Philippine Children’s Medical Center, National Kidney and Transplant Institute, Lung Center of the Philippines, Philippine General Hospital, PNP General Hospital, Victoriano Luna General Hospital, and Rizal Medical Center.

“In these uncertain times, we hold on to what we can be thankful for — a prime example of which are our brave frontliners,” Metro Pacific Investments Corp. (MPIC) Chairman Manuel V. Pangilinan said.

“The daily battle they’re fighting is unimaginable and we take it upon ourselves to give them strength, both physically and mentally, as our way of expressing solidarity,” he added.

The group said it intends to carry out the initiative “for the month of April and will continue to do so as needed.”

It also plans to reach out to more hospitals and health-care facilities.

MPIC is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

ABIC seals purchase of PNB’s nonlife arm

ALLIED BANKERS Insurance Corp. (ABIC) has completed its purchase of PNB General Insurers Co., Inc. (PBGen) as it settled the third and last tranche of its payment to the Philippine National Bank (PNB) ahead of the deadline, the listed lender said on Tuesday.

PNB said in a regulatory filing that it received P366.15 million from ABIC for the third and final installment payment for PNBGen on March 31, ahead of the June 21 deadline for the last tranche.

This completes ABIC’s P1.52-billion purchase of PNB’s entire 65.75% stake in PBGen and also marks the bank’s exit from the nonlife insurance space.

ABIC is the nonlife insurance arm of LT Group, Inc. The move to sell PBGen is part of LT Group’s efforts to consolidate its nonlife insurance businesses.

The share purchase agreement was signed on Dec. 29. The proceeds of the transaction will be used for general corporate purposes.

PBGen offers coverage for fire and allied perils, marine, motor car, aviation, surety, engineering, and accident insurance, among others.

PNB has said it will remain involved in the bancassurance business. The bank is also in the life industry via Allianz PNB Life Insurance, Inc., which is a joint venture with German firm Allianz SE.

“The bank will remain in the bancassurance space to support its strategic growth plans and at the same time eliminate insurance underwriting risk,” the lender added.

PNB saw its net income slump by 73% year on year to P2.6 billion in 2020 after increasing its loan loss reserves to P16.9 billion, five times higher than the year-ago level.

It said it allocated loan loss reserves for the worst-hit sectors during the pandemic, including real estate, transportation, wholesale and retail trade to manage risk exposures.

Shares in PNB went up by five centavos or 0.22% to close at P22.85 apiece on Tuesday. — BML

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