The Philippine Competition Commission (PCC) has cleared the merger of two non-life insurance companies, namely FPG Insurance Co. Inc. (FPG Insurance) and The Mercantile Insurance Company, Inc. (Mercantile Insurance), following a comprehensive review of the transaction’s impact on competition in the insurance sector.
The merger, notified to the PCC on November 19, 2025, will result in Mercantile Insurance as the surviving corporation, which will be renamed FPG Mercantile. Both companies operate in the non-life insurance sector, with Mercantile Insurance offering health, accident, fire and allied lines, motor vehicle, casualty, marine, cargo, marine hull, comprehensive liability insurance, and allied risks, while FPG Insurance provides fire and allied perils, motor, casualty, marine, medical, personal accident, engineering, surety, and bonds.
The PCC’s Mergers and Acquisitions Office (MAO) examined potential competitive effects in the relevant markets for the nationwide provision of aviation, fire, marine, motor car, casualty, engineering, personal accident, and suretyship non-life insurance and the global provision of aviation, fire, marine, motor car, casualty, engineering, personal accident, and suretyship reinsurance to non-life insurance companies. Through party and third-party interviews, the MAO assessed the transaction’s market impact.
The MAO Review Team determined that the merger likely poses no substantial lessening of competition in the relevant markets. The parties’ combined market shares remain low, preventing them from unilaterally influencing market conditions or engaging in foreclosure strategies. Multiple competitors in the relevant markets provide sufficient competitive constraints on the merged entity.
The clearance underscores the PCC’s role in reviewing consolidations in the insurance sector to ensure they do not harm competition. The Commission’s approval allows the merger to proceed, with the finding that competitive dynamics in the relevant markets will be preserved, thereby protecting consumer interests and maintaining a competitive marketplace.
