Philippine insurers can now invest in infrastructure projects

The move enhnaces the investment options of the country's insurers.

The Philippine insurance regulator has allowed insurers to invest in debt or equity security instruments related to the government’s infrastructure blueprint, according to a circular.

Approved investments in infrastructure ranging from construction, financing, operation or projects, will be considered as admitted assets.

"This circular is aimed at encouraging insurers to invest in domestic infrastructure projects to boost our economy and to reap the benefits of portfolio diversification and higher returns," Insurance Commission head Dennis Funa said in a statement.

“Taking into consideration the need for insurers to increase their net worth and the clamour for alternative investment channels, we see that the insurance industry can provide stable and adequate financing to close the infrastructure funding gap.”

The government is implementing an ambitious $153b (PHP9t) building programme called “Build, build, build” until 2022 which includes highways, railways, non-rail based transit facilities, port infrastructure, airports and warehouses amongst others.