EastWest Bank and Ageas form Philippines joint ventureMay 30 2015 by InsuranceAsia News Staff
A new player in the Philippine insurance market has recently been launched following the joint venture agreement entered into by publicly-listed EastWest Banking Corp and Belgium-based Ageas Insurance International NV.
The two firms agreed to form EastWest Ageas Life, a US$65m life insurance firm that will build a bancassurance business in the Philippines.
The new firm will offer tailor-made insurance solutions to the customers of EastWest Bank. According to the agreement, Ageas Insurance will hold 50% plus one share in EastWest Ageas Life while EastWest Bank will have 50% minus one share.
As part of the deal, EastWest Bank, which is listed on the Philippine Stock Exchange, will enter into a 20-year distribution agreement with the new firm and will sell life insurance products through its various sales channels in the Philippines.
The US$65m capital and funding will be provided by Ageas for the first year of the operations.
The deal is still subject to regulatory approval but Ageas expressed confidence that the new JV firm will start operations in 2015.
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