The Philippine Competition Commission (PCC) has approved the merger of FPG Insurance Co. Inc. and The Mercantile Insurance Company, Inc., clearing the way for one of the most significant consolidations yet in the country’s non-life insurance sector.
Under the deal, Mercantile Insurance will remain as the surviving entity and will be renamed FPG Mercantile. Both firms operate across a broad range of non-life insurance products, from motor and fire coverage to marine, casualty, and specialty lines, giving the combined entity a wider portfolio and a deeper reach across corporate and retail clients.
The PCC’s Mergers and Acquisitions Office conducted an extensive review of the transaction, examining its effects on nationwide non-life insurance markets—including aviation, motor car, engineering, and suretyship—as well as the global reinsurance market for similar lines. The process included consultations with industry stakeholders to assess whether the merger could distort competition or limit customer choice.
Regulators concluded that the merger is unlikely to substantially lessen competition. Despite the scale of the transaction, the combined market share of the two insurers remains modest, with numerous competitors still active across all major non-life segments. This competitive backdrop was seen as sufficient to prevent price manipulation or exclusionary practices.
Beyond regulatory clearance, the deal highlights a broader trend of consolidation among midsize insurers seeking scale, efficiency, and stronger risk management capabilities amid rising claims costs and intensifying competition.
The emergence of FPG Mercantile could benefit policyholders as it translates into a more diversified product mix and enhanced service capacity, while the overall market remains firmly contested.
The merger was formally notified to the PCC on November 19, 2025, and is now set to move toward full integration.
