Philippine National Bank will divest from PNB-Beneficial Life to consolidate the Lucio Tan Group’s insurance business under PNB Life.

Omar Byron Mier, president of PNB, said the lender is talking with its partner-the Fernandez family to buy back shares in the company.

PNB owns 40 percent of PNB-Beneficial Life, with the family of the late central bank governor Jose B. Fernandez owning 60 percent.

The Lucio Tan group last year acquired the license of New York Life (Phils.) by hiking Allied Bank’s stake from 25 percent to 75 percent. Other shareholders of the Lucio Tan Group bought the remaining 25 percent.

Allied and New York Life partnered in 2002 for bancassurance.

Mier said the Lucio Tan group will rename the insurance business as PNB Life and would cater to the insurance needs of the group and its clients.

The group has already obtained Securities & Exchange Commission approval for the use of the name, he said

Fifth largest PNB on April 30 bought eight largest Allied Bank for P25 billion to consolidate the group’s banking business.