The Insurance Commission (IC) has approved Philippine National Bank’s (PNB) and subsidiary PNB Holdings Corp.’s Php1.5 billion sale in their combined 100% shareholdings of PNB General Insurers Co. (PNBGen) to Alliedbankers Insurance Corp. (ABIC), as LT Group, Inc. (LTG) consolidates its interests in the non-life insurance business.
PNB has a 66% direct stake in PNBGen, while PNB Holdings owns the remaining 34%. PNBGen is the non-life insurance arm of PNB, while ABIC is the non-life insurance firm of LTG.
PNB Holdings received an initial payment worth PHP 521.8 million from ABIC last December 29, 2020. PNB is set to receive PHP 100.2 million on January 20 and two payments worth PHP 450.7 million on March 21 and June 21, respectively.
We have a BUY rating on PNB with a Target Price of PHP 46.50.