Thursday, December 21, 2017

Meralco, Pioneer Insurance buy into power firm’s unit



By Lenie Lectura - December 20, 2017

THE Manila Electric Co. (Meralco) has sealed a shareholders agreement with Meralco subsidiary Republic Safety and Insurance Co. (RSIC).
In a disclosure to the stock exchange on Wednesday, the utility firm, RSIC and Pioneer Insurance & Surety Corp. (Pioneer) entered into an agreement of shareholders and for subscription of shares wherein RSIC shall issue 2.9 million new shares out of its unissued capital stock to Meralco and Pioneer.
Meralco shall subscribe to 18,500 new shares and Pioneer shall subscribe to 2.88 million new shares of RSIC. The subscription will result in Pioneer owning 51 percent and Meralco 49 percent of RSIC.
In its web site, RSIC is a wholly-owned subsidiary of Meralco. It was acquired in 2007 to align with Meralco’s recognition of the imperative for a disciplined approach in managing its risk exposures, RSIC said.
RSIC continues to renew an insurance program that provided coverage to Meralco’s transmission and distribution assets. It aims to be a “dynamic, proactive risk management and underwriting company” not just for Meralco, its subsidiaries and affiliate companies in terms of synergistic opportunities, but for the insurance industry as a whole, with a commitment to implement risk-management methods with emphasis on risk analysis and mitigation, loss-control management and general insurance management.
The other day, Meralco disclosed that it has created a new subsidiary that will be engaged in owning, maintaining and operating a network of charging stations for electric vehicles.
“We see opportunity in the development of e-vehicles moving forward,” said William Pamintuan, Meralco legal head. “We wanted to also contribute, of course, to the reduction in carbon emissions.”

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