Sun Life Financial Philippines is looking to invest in more infrastructure projects as part of its investment portfolio because these investments involve long-term investments, which insurance companies are more able than banks to undertake.
Sun Life Financial Philippines President and CEO Riza Mantaring said at the sidelines of the Second annual Sinag Financial Literacy Journalism Awards on Thursday that Sun Life has around P170 billion in its general fund, a portion of which the company is keen on deploying in infrastructure projects.
The Sinag Financial Literacy Journalism Awards is Sun Life Philippines’s annual awards to honor journalists whose body of work helps promote financial literacy among Filipinos.
Mantaring said that, aside from its reported foray into the business of producing power, Sun Life Philippines is also looking at other infrastructure projects that it can either fund or have an equity in because infrastructure projects provide insurance companies with a steady cash flow over a long horizon.
She added that Sun Life Philippines is looking initially at an investment ceiling of P2 billion for each project that the insurer will fund, even as it also starts a due diligence audit.
Many of the projects are proposed to be passed on to Sun Life Philippines by banks because insurance companies are more able to handle longer-term investments than banks, which are in the business of lending money and are therefore required to be more liquid. Mantaring noted that the operations of Sun Life’s main branch in Canada is also into investments in infrastructure, such as toll roads, bridges, and even jail facilities, which Sun Life Philippines is looking to replicate here.
According to current regulations, insurance companies may use a portion of their investible assets on infrastructure assets, subject to approval from the Insurance Commission.
Source: by David Cagahastian / http://www.businessmirror.com.ph/insurer-looking-to-fund-more-infrastructure-projects/
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