MVIL growing portfolio

THE Motor Vehicle Insurance Ltd (MVIL) says its acquisition of Pacific Re Ltd (Pac Re) will provide options on how best to invest and grow its portfolio.
Commenting on the approval given by the Independent Consumer and Competition Commission (ICCC) to acquire a 100 per cent shareholding in Pac Re, managing director Michael Makap said the acquisition was part of the state-owned entity’s plan to reposition its business operation.
Consistent with clause nine of Pac Re’s company constitution, MVIL initiated the process to buy out the balance of Class ‘B’ shares held by other insurance companies.
Makap highlighted in a statement that the acquisition was part of MVIL’s broader effort to reposition and consolidate its business operations, both its: core business, and those of its subsidiary, to ensure these are aligned to the government’s reform of state-owned enterprises (SOEs) to maximise shareholder value going forward.
He said the acquisition would allow MVIL to buy out the other shareholders and assess its options on how to best invest and grow the company on behalf of the State and the people of PNG.
“This includes identifying and taking necessary steps to improve the financial sustainability of its subsidiaries through debt portfolio restructuring, with existing commercial debts refinanced with concessional finance,” Makap said.
“In addition, we are keen to drive operational efficiencies in our company and subsidiaries by identifying strategic partner(s) to provide operational expertise and capital to restructure our business and drive efficiency, preferably through a public private partnership (PPP) arrangement.
“These outcomes will inevitable improve our operations and benefit our clients and partners.”