Nonlife insurers’ merger gets watchdog’s nod
The Philippine Competition Commission (PCC) has cleared the merger between FPG Insurance Co. Inc. and Mercantile Insurance Company Inc. These are two nonlife insurers whose transaction is estimated at about P10 billion in gross written premium.
In a statement on Wednesday, the PCC said the deal, first announced in August 2025, was unlikely to result in a substantial lessening of competition despite the two companies operating in the same segment.
“The parties’ combined market shares remain low, preventing them from unilaterally influencing market conditions or engaging in foreclosure strategies,” the PCC said.
“Multiple competitors in the relevant markets provide sufficient competitive constraints on the merged entity,” it added.
Mercantile Insurance will be the surviving entity and will be renamed to FPG Mercantile. In August, the company said it would be led by Gio Pio de Roda, president and CEO of FPG Insurance.
According to the PCC, it reviewed potential competitive effects in the nationwide as well as global provision of aviation, fire, marine, motor car, casualty, engineering, personal accident, and suretyship nonlife insurance.
Before the merger, Mercantile Insurance offered health and accident coverage, fire and allied lines, motor vehicle, casualty, marine, cargo, marine hull, comprehensive liability insurance and allied risks.
Meanwhile, FPG Insurance provided fire and allied perils, motor, casualty, marine, medical, personal accident, engineering, surety and bonds.
The PCC was notified last Nov. 19 of this transaction, which was initially projected to close in October 2025.
At the time, the merger was seen as a way for both companies to expand their digital offerings and insurance solutions, as well as ensure financial stability.
FPG and Mercantile together employ approximately 700 people. Both companies said existing operational sites will be retained following the merger.
