Manulife Financial has entered an agreement to acquire the life insurance and pension & education operations of CMG Philippines from Commonwealth Bank of Australia, subject to regulatory approval.

The transaction, which includes more than 60,000 in-force life insurance policies and pension & education savings plans, will enhance Manulife’s current position in these sectors and further its strategy of becoming a major player in the pension & education industry. The terms of the deal were not disclosed.

Manulife’s acquisition of CMG’s life insurance and pension & education business represents the largest such transaction since the consolidation phase within the Philippines life insurance and pension & education industries began a few years ago.

“The Philippines is an important market
for Manulife Financial in Asia and we have long sought a strategic opportunity to expand our presence here,” said Vic Apps, Manulife’s executive VP and general manager for Asia. “Though we have been significantly growing our operations locally, this move will greatly accelerate our expansion efforts, primarily through the addition of more than 1,000-plus agents.”

Manulife currently ranks as the fourth largest life insurance company in the Philippines, as measured by total individual premium income. This deal will increase Manulife’s market share in the Philippines to 6.6% in terms of total life insurance premiums and 2.6% of total pension and education sales.

Manulife’s combined agency force in the Philippines has grown to more than 1,400 as a result of an aggressive growth strategy, a substantial increase from the less than 400 agents that existed only two years ago.