NONLIFE INSURERS FPG Insurance Co., Inc. and The Mercantile Insurance Co., Inc. have agreed to merge, they said in a joint statement dated Aug. 15.
The merged company will be named FPG Mercantile and will have estimated combined gross written premiums (GWP) of P10 billion, which would place it among the top four nonlife insurers in the Philippines, they said.
“The merger brings together two long-standing market players… FPG Mercantile will be in a position to innovate, expand digital offerings, and navigate the evolving regulatory landscape in the Philippines,” the companies said.
“The combined entity … will leverage the strengths of both companies to deliver enhanced insurance solutions, greater financial stability, and superior customer service to millions of Filipinos.”
The transaction is expected to close by October, subject to regulatory approvals.
Data from the Insurance Commission showed that FPG, which is part of the Zuellig Group of Companies, was the fifth biggest nonlife insurer in terms of GWP in 2024 with P6.17 billion. Meanwhile, Mercantile ranked 13th with GWP of P3.27 billion.
FPG posted a net loss of P147.81 million in 2024 and assets worth P10.52 billion, while Mercantile booked a net income of P111.596 million last year and had P6.1 billion in assets.
FPG President and Chief Executive Officer Gigi Pio de Roda will lead the merged company, the insurers said.
“This partnership is a transformative step for the Philippine insurance industry. By uniting our resources and talents, we will create a more resilient organization capable of providing comprehensive protection to our clients amid growing economic uncertainties and climate risks,” Ms. Pio de Roda said.
David Zuellig, FPG regional chairman, said the merger will create a “powerhouse” market leader.
“Joining forces with FPG allows us to accelerate our growth and deliver even greater value to policyholders across the archipelago. This merger is about synergy, innovation, and a deeper dedication to safeguarding the futures of our customers,” Mercantile Chairman Romulo I. Delos Reyes, Jr. added.
According to Gerard Pennefather from Huntington, strategic advisors to FPG, the transaction is “possibly the largest nonlife insurance deal in the Philippines.”
The companies said there will be no immediate changes to their existing policies or customer services.
“The merged company is committed to supporting its workforce, ensuring a smooth transition for employees of both organizations. FPG Mercantile will offer professional development programs, and opportunities for career growth to its combined workforce of about 700,” they added. — AMCS