Philam Life interested in funding government infrastructure deals
THE PHILIPPINE American Life and General Insurance Co. (Philam Life) is interested in financing some of the government’s infrastructure projects, the firm’s chief said.
“Pag may mga ganyang opportunities, interesado kami. (If there are opportunities, we are interested.) I think what we’re looking at from the government right now, ano ba yung guidelines (what are their guidelines)?” Philam Life President and Chief Executive Officer Ariel G. Cantos told reporters in a media luncheon on Tuesday when asked for the company’s stand on the Insurance Commission’s (IC) push for alternative investment outlets for the sector.
The insurance regulator is seeking regulations that would allow insurers to expand their investment horizon by allowing them to put their excess capital in higher-yielding instruments like infrastructure and public-private partnership (PPP) projects amid recent market volatilities.
According to Mr. Cantos, they have already talked with the IC and other banks into including them in funding infrastructure projects.
“Kasi alam na namin (Because we already know this,) we’ve already spoken with the Insurance Commission, we’ve already coordinated with banks,” he said.
NATION BUILDING
“We are interested to explore opportunities in those infrastructure projects [ because] it’s part of nation building,” Mr. Cantos said.
Mr. Cantos also noted they are just “waiting for guidelines” on the “rules of engagement,” not only from the IC.
“So I’ve requested our investment people…how do we get into these kind of projects? So yes, we are interested to look at that,” he said.
The IC had said it is in talks with various government agencies, particularly with the PPP office and the Bureau of the Treasury, on its proposal for higheryielding investment products for both life and non-life insurance companies.
Under Republic Act ( RA) 10607 or the Amended Insurance Code of the Philippines, insurers must set aside portions of their total capital to be invested in bonds, mortgages, stocks, real estate and other assets. Other investible assets include mutual funds, real estate investment trusts, salary loans, unit investment trust funds and special deposit accounts.
It also states that both life and non- life insurance companies may purchase, hold own and own real properties, government bonds, bonds or other instruments of government- owned or controlled corporations and the Bangko Sentral ng Pilipinas, bonds, and debentures or other instruments of any solvent firm.
Latest data from the IC bared Philam Life’s premium income reached P19.21 billion in 2016, placing the firm fourth in premium terms last year, while it ranked first in terms of assets with P200.5 billion last year. —