FPG Insurance Co Inc (FPG) and The Mercantile Insurance Co Inc (Mercantile), two of the largest non-life insurance providers in the Philippines have announced their definitive agreement to merge.
A press release published by FPG Insurance said the combined entity, to be named FPG Mercantile, with an estimated combined gross written premium (GWP) income of PHP10bn, will leverage the strengths of both companies to deliver enhanced insurance solutions, greater financial stability, and superior customer service to millions of Filipinos.
With the combined market share placing the new entity among the top four insurance companies by GWP in the non-life sector, FPG Mercantile will be in a position to innovate, expand digital offerings, and navigate the evolving regulatory landscape in the Philippines. The transaction is expected to close by October 2025, subject to regulatory approvals from the Insurance Commission and other relevant authorities.
FPG regional chairman David Zuellig said, “This merger marks a historic milestone for the industry and nation. By bringing together two trusted names, we are creating a powerhouse that will not only lead the market but also set new benchmarks for protecting Filipino families and businesses in an increasingly complex world."
FPG president and CEO Ms Gigi Pio de Roda said, “This partnership is a transformative step for the Philippine insurance industry. Ms Roda will also lead FPG Mercantile, the new entity.
Ms Roda said, “By uniting our resources and talents, we will create a more resilient organisation capable of providing comprehensive protection to our clients amid growing economic uncertainties and climate risks,” she added.
Mercantile chairman Romulo I. Delos Reyes Jr said, "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."
“This merger represents possibly the largest non-life insurance deal in the Philippines, a landmark transaction that will redefine the industry,” said Gerard Pennefather from Huntington, strategic advisors to FPG.
The press release said the merged company is committed to supporting its workforce, ensuring a smooth transition for employees of both organizations. FPG Mercantile will offer professional development programmes, and opportunities for career growth to its combined workforce of about 700. The company will maintain operations across all cities where they are currently present, with no immediate changes to existing policies or customer services.