Insular Life (InLife), the largest Filipino-owned life insurance company in the Philippines, is entering into a joint venture agreement with Oona Philippines Holding Corporation to jointly own stakes in the general insurer, Mapfre Insular Insurance Corporation (MIIC).
Oona Philippines is a subsidiary of Oona Singapore, which aims to become a regional digital general insurance platform in Southeast Asia. Oona Singapore is backed by Warburg Pincus (WP), a global private equity firm and a leading global growth investor.
IInLife is raising its stake in MIIC from 25% to 40%, while Oona shall acquire the remaining 60% stake in the general insurer.
InLife’s erstwhile partner in MIIC, Mapfre Internacional of Spain (Mapfre), has decided to exit its business interests in Asia, including the Philippines. With Mapfre’s exit, InLife is increasing its stake in MIIC.
InLife's executive chairperson Ms. Nina Aguas said in a statement, “We attracted a significant investor for our non-life businesses. InLife’s focused execution, strong and tested brand, and wide network were attractions to Oona. The joint venture will allow our current and future distribution channels to scale up and provide stronger and better general insurance products delivered using technology.
"The complementary strengths of both companies will propel both companies to leadership positions in providing relevant and timely solutions to the current and evolving needs of our markets. This will give us more arsenal to pursue our growth trajectory for our non-life businesses as we become stronger players in the digital economy.”
Mr. Abhisek Bhatia, Group CEO of Oona, said of its partnership with InLife, “Together, we will build the leading digital general insurer in the country. Our shared values of customer first and digital enablement will drive future growth for the business.”
According to Ms Aguas, this joint venture has been approved by the Insurance Commission.
MIIC is part of a $350-m acquisition by New York-based private equity firm Warburg Pincus. The American investor is acquiring MIIC along with Asuranci Bina Dana Arta (ABDA) in Indonesia. Both are to be rebranded as Oona and be part of the regional digital general insurance platform.