FPG Insurance Co. Inc. and The Mercantile Insurance Co. Inc. have signed a definitive agreement to merge, creating what advisors call potentially the largest non-life insurance deal in the Philippines.
The combined entity, FPG Mercantile, will have a gross written premium of PHP10bn (approximately US$175m) and rank among the top four non-life insurers by market share in the country.
Gigi Pio de Roda, President & CEO of FPG, will lead the merged company. The transaction requires approval from the Insurance Commission and other regulatory authorities before closing in October 2025.
“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 merger will maintain operations across all current locations where both companies operate. FPG Mercantile will employ approximately 700 staff from both organisations, with the company stating it will offer professional development programs and career growth opportunities.
Romulo I. Delos Reyes, Jr., Chairman of Mercantile, said joining with FPG allows the company “to accelerate our growth and deliver even greater value to policyholders across the archipelago.”
The companies have committed to maintaining existing policies and customer services without immediate changes during the transition period. The merger comes as FPG has been expanding its digital distribution channels, including its partnership with fintech GCash to provide free accident and health insurance coverage to mobile credit purchasers through the GInsure platform.
