Arthur J. Gallagher & Co has finalised its acquisition of Philpacific Insurance Brokers & Managers Inc (Philinsure), a Philippine commercial insurance and reinsurance brokerage.
The transaction follows Gallagher’s earlier minority investment in the firm. The financial details of the deal were not disclosed.
Philinsure operates across the Philippines, with its headquarters in Cebu City and additional offices in Metro Manila and Davao City.
The company’s leadership – including Gordon “Dondi” Joseph – will continue in their current roles, reporting to Sarah Lyons, who oversees Gallagher’s retail property/casualty brokerage operations in Australia and Asia.
J. Patrick Gallagher Jr, chairman and CEO, has welcomed Joseph and his associates to Gallagher’s growing global team.
“With a strong record of growth and a culture like our own, Philinsure provides a fantastic opportunity to expand our retail brokerage capabilities in Asia,” he said.
Gallagher’s expansion in the Philippines comes as the country’s insurance industry reported an increase in premiums, net income, and total assets for 2024, based on data from the Insurance Commission’s Enhanced Quarterly Reports on Selected Financial Statistics (EQRSFS).
Total industry premiums rose by 12.81% year-over-year, reaching ₱440.39 billion in the fourth quarter of 2024, compared to ₱390.39 billion in the same period in 2023. Industry-wide net income increased by 15.88%, climbing from ₱48.58 billion to ₱56.29 billion. Benefit payouts to policyholders also grew by 18.97%, totalling ₱160.33 billion.
The sector’s total assets expanded by 6.43% to ₱2.46 trillion, while invested assets increased by 7.23% to ₱2.20 trillion. Insurance penetration, which measures the industry's contribution to the nation’s GDP, rose from 1.61% in 2023 to 1.67% in 2024.
The life insurance sector experienced asset growth of 7.30%, reaching ₱1.92 trillion. The increase was driven by a 4.93% rise in traditional fund assets and a 9.10% expansion in segregated fund assets. Premium income for the sector grew by 13.56% to ₱352.02 billion.
Both variable and traditional life policies saw gains, with variable life premiums increasing by 12.21% and traditional life premiums rising by 16.17%. Single premiums recorded a notable 40.33% increase. The sector’s net income rose by 19.63% to ₱40.23 billion, even as benefit payments increased by 22.06%.
In the non-life insurance sector, total assets increased slightly by 0.73% to ₱374.49 billion. Net premiums written (NPW) grew by 10.49% to ₱71.84 billion. Motor vehicle insurance, which accounted for 40.17% of NPW, increased by 6.28%, while fire insurance, making up 16.64% of NPW, grew by 12.44%.
However, the non-life sector reported a 2.63% decline in net income, totalling ₱8.89 billion. The decrease was attributed to a rise in underwriting expenses, higher administrative costs, and a 34.12% increase in income tax provisions.
