They said in a joint statement on August 15 that non-living insurance company FPG Insurance Co., Inc. and Mercantile Insurance Co., Inc. Agreed to merge.
The combined company will be named FPG Mercantile and will be estimated at a total written premium (GWP) of pesos 10 billion, which will be among the top four non-living insurance companies in the Philippines.
“The merger brings together two long-standing market players…FPG commercial companies will have the ability to innovate, expand digital products and browse within the Philippines’ evolving regulatory environment,” the two companies said.
“The combined entity … will leverage the advantages of both companies to provide enhanced insurance solutions, higher financial stability and excellent customer service to millions of Filipinos.”
The deal is expected to be completed by October, but subject to regulatory approval.
According to the Insurance Commission, a portion of the FPG of the Zuellig Group Corporation is the fifth largest non-living insurance company in GWP in 2024, with a P6.17 billion pesos. At the same time, the GWP of the commodity is 3.27 billion pesos.
FPG’s net loss in 2024 was 147.81 million pesos with assets worth 10.52 billion, while Merchant’s net income last year was P111.596 billion, with assets worth 6.1 billion pesos.
Insurers said FPG president and CEO Gigi Pio de Roda will lead the merged company.
“This partnership is a transformative step in the Philippines’ insurance industry. By bringing our resources and talents together, we will build a more resilient organization that can provide comprehensive protection for our customers in the context of growing economic uncertainty and climate risks.”
FPG Regional Chairman David Zuellig said the merger will create a “strong” market leader.
“Linking with FPG can accelerate our growth and bring greater value to policyholders across the archipelago. This merger is about synergy, innovation and deeper dedication to safeguard the future of our clients,” said Mercantile Chairman Romulo I. Delos Reyes, Jr. Added.
Gerard Pennefather of Huntington, a strategic consultant at FPG, said the deal “maybe the largest non-living insurance agreement in the Philippines.”
The companies said their existing policies or customer service would not be changed immediately.
They added: “The merged company is committed to supporting its workforce and ensuring a smooth transition to the employees of both organizations. FPGMercantile will provide professional development programs and provide career growth opportunities for approximately 700 workforces.” – AMCS
