AIG’s Philippine arm has boosted its property insurance capacity portfolio to US$2.5 billion from US$1.5 billion, targeting opportunities presented by the infrastructure push espoused by the ASEAN member’s government.
Mark Lwin, president and chief executive officer of AIG Philippines, said that the insurance giant is refocusing its portfolio on the commercial and business segments, expecting a boost in the government’s infrastructure spending over the next few years.
“We’ve refocused our business and our entire portfolio on our commercial and business segments, which we think are very underserved in this market, and we’re very excited to be part of growing resiliency for Filipinos and Filipino communities,” Lwin told
ANC.
However, Lwin stated that the portfolio expansion will not be released immediately as the insurer will still wait for the government’s plans.
He added that the Philippines is behind most of its ASEAN neighbours in terms of infrastructure spending, allocating only 3% of its GDP, compared to most of its peers’ 5% or more. He also foresees a boom in the country’s business process outsourcing sector, especially in knowledge processing.
AIG Philippines’ net earnings grew by 45% in 2016 on the back of its commercial and business clients, despite a challenging environment due to low interest rates.
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