Cocolife eyes 16% growth in premiums

The United Coconut Planters Life Insurance (Cocolife) has set a target of P1.27 billion in total premium income this year, up by 15.87 percent over the P1.096 billion recorded last year.

This means Cocolife must produce some P425 million in first-year premium incomes plus renewals of P845 million to achieve its lofty goal. The life insurance company allied with the United Coconut Planters Bank (UCPB) recorded first-year premiums of P291 million and renewals of P805 million last year.

In 2000, Cocolife recorded total premium income of P1.001 billion and P706 million the year before.

In 2001, the life insurance company was ranked seventh overall among the then 42 life insurance companies in the country. At the start of 2003, only 37 players remained active.

Alfredo C. Tumacder Jr., Cocolife president said they are looking to move up from seventh in 2001 and 2002 to fifth overall by 2005. "That would mean an annual growth rate of over 30 percent," Tumacder said.

To achieve its three-year goal, Cocolife needs to launch new and innovative products such as the one-time payment policies, dollar-based policies, and bancassurance aside from strengthening its traditional sales agencies.

In terms of net income, Cocolife said 2003 would result in lower earnings due to the drop in interest earnings from its investments. Unaudited net income last year reached P211 million versus projected earnings of P170 million this year.

Prevailing interest rates for investments like government securities and commercial loans stood at 14 to 16 percent on the average last year. However, it is seen to trim down to between 10 to 12 percent this year. "That is the only reason why our projected net earnings will be reduced this year," the Cocolife president stressed.

In terms of policies-in-force, Cocolife has a total 1.68 million at the start of 2003. This includes a little over one million coconut farmers and 680,000 from the general public.

But in terms of the face amount of the coverage, the farmers only account for nine percent or roughly P7.7 billion while the general public accounted for the remaining 91-percent worth about P77.5 billion.