FPG and Mercantile Announce Landmark Merger to Form FPG Mercantile

Introduction

20 August 2025 – FPG Insurance Co Inc (FPG) and The Mercantile Insurance Co Inc (Mercantile), two of the Philippines’ largest non-life insurance providers, have announced their merger to form FPG Mercantile. With a combined gross written premium (GWP) of PHP 10 billion, the merged entity will emerge as a new powerhouse in the Philippine non-life insurance market.

The merger, expected to close by October 2025 subject to regulatory approval, will bring together the scale, expertise, and resources of both companies to deliver enhanced protection and service to millions of Filipinos.

Strategic Impact

With its combined GWP, FPG Mercantile is projected to rank among the top four insurers in the Philippine non-life sector. The company will focus on:

• Expanding digital insurance solutions.
• Enhancing financial stability.
• Delivering comprehensive coverage amid climate risks and economic uncertainties.
• Strengthening customer service across the country.

The merger also represents one of the largest non-life insurance deals in Philippine history, signaling a new era of industry consolidation and innovation.

Leadership Commentary

David Zuellig, FPG Regional Chairman, commented:

“By bringing together two trusted names, we are creating a powerhouse that will not only lead the market but also set new benchmarks for protecting Filipino families and businesses in an increasingly complex world.”

Gigi Pio de Roda, President & CEO of FPG, and incoming CEO of FPG Mercantile, said:

“This partnership is a transformative step for the Philippine insurance industry. By uniting our resources and talents, we will create a more resilient organisation capable of providing comprehensive protection to our clients amid growing economic uncertainties and climate risks.”

Romulo I. Delos Reyes, Jr., Chairman of Mercantile, added:

“Joining forces with FPG allows us to accelerate our growth and deliver even greater value to policyholders across the archipelago. This merger is about synergy, innovation, and a deeper dedication to safeguarding the futures of our customers.”

Gerard Pennefather of Huntington Advisory, strategic advisors to FPG, noted:

“This merger represents possibly the largest non-life insurance deal in the Philippines, a landmark transaction that will redefine the industry.”

Customer and Employee Impact

• Employees: The merged company has committed to a smooth transition while maintaining operations across existing locations.
• Customers: There will be no immediate changes to existing policies or services during the integration period.

Looking Ahead

The creation of FPG Mercantile signals the start of a new chapter for the Philippine insurance industry, one defined by scale, innovation, and resilience. By combining the strengths of two established players, FPG Mercantile is positioned to set new standards in client service, product innovation, and market leadership.

Source

This insight is based on the official announcement: Reinsurance News – “Philippine insurers FPG and Mercantile announce merger”.

‍