Insular Life net income up 38% to P836M in 2003

Leading Filipino life insurer Insular Life, ended 2003 with a consolidated net income of P836 million, up by 38 percent from the previous year’s figure of P605 million. Consolidated revenues reached P10.2 billion, up by 17 percent from the previous year’s figure of P8.7 billion.

Revenues came from premium income, which grew by 13 percent to P7.2 billion and investment income of P2.6 billion, up by 30 percent over the previous year. New business premiums grew by 82 percent, reaching the P2-billion mark at year end.

In his report on the 2003 performance at the company’s annual members’ meeting on May 26, Insular Life chairman Vicente R. Ayllon said the strong performance in the midst of difficult economic conditions could be attributed to a strong product line, a creative approach towards tapping new markets and improved operational efficiencies.

Ayllon said, "these factors, coupled with a shift in our core investment strategy towards fixed-income instruments, enabled Insular Life to achieve strong results, solidifying our foothold in the financial services sector and further strengthening Insular Life’s position as the largest Filipino life insurance company."

The company’s fixed-income investments composed of time deposits, government Treasury bills and bonds, money market placements, and mortgage and term loans, increased by 63 percent to P10.6 billion at yearend 2003 from P6.5 billion in 2002. Ayllon reported that total consolidated assets grew by 10 percent to P37.8 billion. Total benefits paid to both life and non-life policyholders increased by 16 percent to P3.7 billion.

Dividends paid to individual policyholders amounted to P858 million and experience refunds on Group Insurance amounted to P22 million. Life insurance business-in-force reached P195.2 billion.

The company’s financial services subsidiaries likewise showed strong performances despite the prolonged downturn in their respective industries. Insular Savings Bank recorded an income of P87 million, higher than the P76.4 million in 2002.

Insular Life Health Care, Inc. (I-Care) likewise posted net profits of P 22.8 million, from P 9.2 million in 2002, while Insular Investment and Trust Corporation (IITC) posted net income of P16.47 million in 2003.