New York Life Insurance Co, the biggest US life insurer owned by policyholders, is in talks to sell its business in the Philippines to focus on China and other emerging markets in Asia and Latin America.
New York Life, which entered the Philippine market in 2001, is ranked 14th out of the country's 29 insurers based on premium income last year, according to Insurance Commission data. The company earned 485 million pesos (US$11 million) in premiums last year and had 1.39 billion pesos in assets in December 2005.
"We are in discussions with our long-time partner in the Philippines, given their interest in taking a more significant stake in New York Life Insurance Philippines," John Brine, spokesman at the New York-based insurer, said in an e-mailed reply to queries yesterday.
New York Life is selling more policies in emerging markets, where it's betting on an increase in demand from a growing middle class in markets such as India, Mexico and Taiwan.
Separately, Standard & Poor's Ratings Services said yesterday it had affirmed its stable outlook on most of the insurance markets in the Asia-Pacific, on the back of strengthening balance sheets and strong growth prospects.
"This is despite challenges such as continued softening in the non-life industry, increasing competition in some markets and regulatory constraints for some life markets' asset and liability management," S&P credit analyst Connie Wong said in a release.
S&P said industry risks in the region vary from very high to low, citing differences in consumer demand and complexity.
Additional reporting by staff writer
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