Arthur J. Gallagher & Co. has completed its acquisition of Philpacific Insurance Brokers & Managers Inc. (Philinsure), a leading commercial insurance and reinsurance brokerage based in the Philippines. This move follows Gallagher’s earlier minority investment in the firm, though financial details of the deal have not been disclosed.
Philinsure operates across the Philippines, with offices in Cebu City, Metro Manila, and Davao City, and will now strengthen Gallagher’s presence in the growing Southeast Asian insurance market.
Leadership and Integration Plans
Following the acquisition, Philinsure’s leadership, including CEO Gordon “Dondi” Joseph, will remain in place and continue to report to Sarah Lyons, who oversees Gallagher’s retail property/casualty brokerage operations in Australia and Asia.
J. Patrick Gallagher Jr., Chairman and CEO of Arthur J. Gallagher, expressed enthusiasm about the acquisition, welcoming Joseph and his team to the global Gallagher family. He emphasized the strategic value of Philinsure’s strong growth trajectory and similar corporate culture, noting that the acquisition will bolster Gallagher’s retail brokerage capabilities across Asia.
Growth of the Philippine Insurance Market
Gallagher’s expansion comes at a time when the Philippine insurance industry is experiencing robust growth. According to the Insurance Commission’s latest reports, premiums, net income, and total assets have all seen significant increases in 2024.
Premiums across the industry rose by 12.81% year-on-year, reaching ₱440.39 billion in the fourth quarter of 2024, up from ₱390.39 billion in 2023. Net income also increased by 15.88%, climbing from ₱48.58 billion to ₱56.29 billion. At the same time, benefit payouts to policyholders grew by 18.97%, totaling ₱160.33 billion.
The industry’s total assets expanded by 6.43%, reaching ₱2.46 trillion, while invested assets grew by 7.23%, amounting to ₱2.20 trillion. Insurance penetration also increased, rising from 1.61% of GDP in 2023 to 1.67% in 2024.
Performance of Life and Non-Life Insurance Sectors
The life insurance sector in the Philippines showed particularly strong performance, with total assets growing by 7.30% to ₱1.92 trillion. Traditional fund assets rose by 4.93%, while segregated fund assets expanded by 9.10%. Premium income in the life sector increased by 13.56%, reaching ₱352.02 billion.
Both variable and traditional life policies saw notable gains. Variable life premiums grew by 12.21%, while traditional life premiums rose by 16.17%. Single premiums saw a significant 40.33% increase. Despite higher benefit payments, the life insurance sector’s net income rose by 19.63%, reaching ₱40.23 billion.
In contrast, the non-life insurance sector experienced a more mixed performance. Total assets in the sector increased slightly by 0.73% to ₱374.49 billion. Net premiums written grew by 10.49% to ₱71.84 billion, driven by increases in motor vehicle insurance (up 6.28%) and fire insurance (up 12.44%).
However, net income in the non-life sector declined by 2.63%, totaling ₱8.89 billion. This decrease was attributed to higher underwriting expenses, rising administrative costs, and a significant 34.12% increase in income tax provisions.
Looking Ahead
Gallagher’s acquisition of Philinsure positions the company to capitalize on the growing opportunities in the Philippine insurance market. As the sector continues to expand, Gallagher aims to further enhance its capabilities and solidify its position as a key player in the region’s insurance industry.
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