Manila, Philippines, May 6, 2024—To grow the non-life insurance market in the Philippines for small businesses, IFC today announced it is investing up to $10 million in a special purpose vehicle, joining a consortium of investors led by Triple P Capital—an investor in Southeast Asian financial services—to acquire an 85 percent stake in MAA General Assurance Philippines Inc. (MAAGAP).
The consortium also 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.
Following the acquisition, the investor group will work together with MAAGAP to strengthen its presence in the country by focusing more 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."
There is a large gap in insurance protection for households and firms 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[1].
"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.
Additionally, IFC will leverage its expertise to help develop MAAGAP's digitalization strategy, critical to lowering costs and expanding 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 & CEO of MAAGAP.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
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About Triple P Capital
Triple P Capital is an expert investor in Southeast Asian financial services. The firm focuses on high-growth businesses that reach emerging consumers in emerging Southeast Asia, including Indonesia, Philippines, Vietnam, Cambodia, and Thailand. In addition to delivering superior financial returns, Triple P Capital focuses on promoting financial inclusion and climate risk. The investment team consists of successful financial services entrepreneurs, operators, and investors who work closely with the firm's partner businesses to create value. For more information, visit www.triplepcapital.com
[1] https://www.bsp.gov.ph/Inclusive%20Finance/Financial%20Inclusion%20Reports%20and%20Publications/2021/2021FISToplineReport.pdf
