Insular Life posts 24% hike in profit

Insular Life posted a net income of P605 million for fiscal year 2002, up by 24 percent over the previous year’s net income of P488 million. Revenues reached P8.7 billion, a seven percent growth over the 2001 figure of P8.1 billion, with premium income accounting for P6.4 billion, and investment income reaching P2 billion.

The company breached the P1-billion mark in new life insurance business premiums, ending the year with P1.1 billion, a 36-percent increase over 2001’s P810 million.

Insular Life chairman Vicente R. Ayllon, in his report to policyholders during the company’s annual members’ meeting attributed the strong performance primarily to innovative products, renewed efforts at people and systems development for better customer servicing, and the shift to the company’s investments to fixed-income instruments.

Ayllon reported that total consolidated assets of the Insular Life Group reached P34.3 billion, up by 10 percent compared to 2001’s P31.1 billion. Total benefits paid to both life and non-life policyholders grew 11 percent to P3.2 billion. The company paid dividends to individual life insurance policyholders amounting to P648 million as well as experience refunds on group insurance business amounting to P3 million. Life insurance business-in-force at yearend stood at P177.2 billion.

Insular Life’s strategy of shifting a substantial portion of the company’s asset mix to fixed income investments resulted in fixed income investments growing by 27 percent to P2.1 billion, largely due to the increased allocations in bonds and term loans.

Ayllon reported that the company’s financial services subsidiaries similarly performed well in their respective industries despite the weak economy. Insular Life Savings and Trust Co.’s net income improved substantially to reach P76.4 million. The bank’s total assets also increased by 17 percent to reach P4.75 billion, primarily from the growth in its loan portfolio. Total deposits grew by 18 percent to P3.85 billion.