The International Finance Corp., the private sector investment arm of the World Bank, has invested USD10 million in a consortium of investors led by Triple P Capital in a bid to grow the non-life insurance market in the Philippines for small businesses.
The IFC investment allowed Triple P Capital to acquire an 85 percent stake in a special purpose vehicle called the MAA General Assurance Philippines Inc. (MAAGAP).
The consortium includes the German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft MBH (DEG), the Belgian Investment Company for Developing Countries SA (BIO), and OP Finnfund Global Impact Fund I KY.
With the acquisition, the investor group will work together with MAAGAP to strengthen its presence in the country by focusing on the underpenetrated segments—micro, small, and medium enterprises (MSMEs) and retail—by offering targeted personal accident, motor, health, and fire and property insurance products.
“MAAGAP’s prudent management, strong reputation, and solid distribution position create a powerful combination,” said David Steel, founding partner at Triple P Capital.
“We are thrilled to collaborate with MAAGAP’s exceptional leadership team, whom we have known and respected for many years. Together, we aim to provide quality insurance products, extend coverage to more Filipinos and Filipino businesses, and build resilience against accidents, climate change, and other disasters.”
Consortium members note a large gap in insurance protection for households and businesses in the Philippines.
According to a survey conducted by the Bangko Sentral ng Pilipinas, 48 percent of the adult population in the country own insurance, primarily Philhealth, the country’s universal health insurance coverage.
Excluding Philhealth, insurance ownership is only about 17 percent. Over half (56 percent) of the survey respondents said they have inadequate funds to purchase insurance, indicating the lack of affordable insurance products as a key barrier to insurance ownership.
“A robust insurance market is critical to strengthening the Philippines’ resilience. With climate change triggering more natural disasters that pose an increasing threat, insurance protection is key to providing a safety net and stability, especially for the most vulnerable. Access to affordable insurance services allow small businesses and the poorest to bounce back financially and rebuild their lives after an unexpected loss, fostering resilient and inclusive growth,” said Jean-Marc Arbogast, IFC country manager for the Philippines.
The IFC plans on leveraging its expertise to help develop MAAGAP’s digitalization strategy needed to lower costs and expand insurance access across the archipelago, while supporting the company to implement an environmental and social management system in line with IFC requirements and good industry practices.
“This collaboration presents us with a unique opportunity to learn from a wide range of investors, including international best practices in governance, environmental and social responsibility, risk management, and others. Together, we aim to ramp up our standards, expand our reach, and contribute to the resilience of the Filipino community,” said Martin L. Dela Rosa, president and CEO at MAAGAP.
