Oona Insurance eyes M&A to boost earnings

Stricter capital rules are pushing weaker players out of the Philippine market.

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Ona Insurance Group Holdings is targeting mergers and acquisitions (M&A) in the Philippines to boost premium income by at least 30% this year, as the Singapore-based insurer looks to add value to its operations.

"We have capital ready to deploy, but the opportunity has to feel right," Oona CEO Abhishek Bhatia told Insurance Asia. "If there's a strong strategic fit, we'll move quickly."

The company is aiming for annual net income growth of as much as 60%. "We're open to acquiring companies where the capabilities of the target add real value to our operations," he added.

Stricter capital requirements are pushing weaker players out of the market, creating opportunities for consolidation, he said.

"These regulatory efforts help maintain a healthy, sustainable insurance ecosystem, and they naturally lead to consolidation," Bhatia told the magazine.

Whilst Asia-Pacific's insurance carrier mergers and acquisitions (M&A) activity fell by 25% in 2024 compared to 2023 as established firms prioritised organic investment, focusing on data analytics amidst geopolitical uncertainties, according to Clyde & Co's annual insurance Growth Report.