Byline: FIL C. SIONIL

BDO Unibank Inc. is having the best of both worlds in terms of its bancassurance business arising from its alliance with the country's top two insurance players, Philippine-American General and Insurance Company (Philamlife) and Generali Pilipinas Life Assurance Co.

As a consensus, Cuisia said Philamlife-Equitable Life Assurance Co. (Pelac), the bancassurance firm tie-up between former Equitable-PCI Bank, which has been merged with BDO, is marketing variable unit linked (VUL).

These are more of life insurance products that are sold over-the-BDO counters.

On the other hand, Generali Pilipinas is more into "traditional" products.

BDO controls 40 percent of Generali Pilipinas and 60 percent by Generali Asia, a regional alliance between Assicurazioni Generali (Generali) of Italy and Jerneh Asia Berhad of Malaysia.

Pelac has edged out Generali Pilipinas in VUL products as the latter has yet to venture into this particular life insurance products that are investment-laced.

The investment component of the VUL is similar to mutual funds including investments placed in the equity or stock market, fixed income or bond market, and the balanced fund or a combination of the equity and fixed income markets.

There is no overlapping. There is no duplication, Cuisia said.

In turn, BDO has "bigger market share" of the bancassurance business.

Cuisia expressed confidence on the huge potential bancassurance business, particularly the VUL, amidst the slump in the bonds and equities yields, largely as a collateral damage of the unfolding developments in the US subprime mortgage market.