By Lawrence Agcaoili

The Government Service Insurance System has dropped plans to acquire Philippine American Life and General Insurance Co. after the management of the country?s largest insurance provider did not allow the pension fund manager to look into its books.

GSIS president and general manager Winston Garcia said the agency was no longer pursuing the insurance company after the management of Philamlife required interested companies to make an indicative offer before they are allowed to conduct due diligence.

?They are asking for the moon. They are so arrogant. All of us were asked to make an indicative offer before we can do due diligence,? said Garcia.

He said GSIS wanted to conduct a due diligence to look into the financial capability of Philamlife.

?How can we make an offer if we cannot do a due diligence. They are bragging about their cash flow but how about their liabilities,? he said.

The cash-rich pension fund manager announced that it was willing to buy up to 49 percent of Philamlife in Otober after its parent firm American International Group asked for a bailout in the United States.

GSIS remains the number one government-owned and -controlled corporation with a record P441.8 billion in total assets and P34.9 billion in claims and benefits paid to members in 2007. It posted a net profit of P41.5 billion in 2007 and is on its way to earning P50 billion in 2008.

Philamlife, as the country?s leading insurance provider, is strong and well-capitalized with a net worth of P49.5 billion and with over P170 billion in assets.

Companies that publicly expressed interest in Philamlife include Ayala Corp., retail magnate Henry Sy through BDO universal bank, taipan Alfonso Yuchengco through RCBC, food and beverage giant San Miguel Corp. and Pru Life of UK.