Ayala Life gross premiums up 27% to P936 million in first semester

Ayala Life Assurance Inc. remained on track of its targets this year as gross premium in the first six months of 2004 grew by 27 percent to P936 million, from P740 million in the same period a year earlier.

The Ayala-owned insurance firm has forecast its total premium to reach P2.4 billion this year, up by roughly 41 percent from the P1.7-billion level in 2003.

"The better-than-expected results in the first semester was driven by the exceptional contribution of bancassurance, as well as the steady growth of traditional sales," said Ayala Life president Emilio de Quiros.

Total premium collections were aided by new unit BPI Bancassurance Inc., which accounted for almost 25 percent of gross premium.

As a result, the company’s net income grew by eight percent, or from P139 million to P150 million this year.

Net investment income improved by 22 percent due to higher interest earned on fixed-income securities.

Operating expenses were likewise maintained, resulting in an improved cost-to-revenue ratio of 14 percent from 19 percent in the previous year.

"The agency workforce also strengthened through continuous best-in-class recruitment, training and year-round sales incentive programs aimed to boosting agency activity, morale and productivity," de Quiros added.

He stressed that growth was most reflected in the Southern Philippine regions which include Zamboanga, Bukidnon, and Central Mindanao.

"Even our renewal rate stood at an impressive 90 percent as policyholders "defended" their policies exceptionally heavier than in previous years," he added.

"No doubt, policyholders and prospective policyholders put a premium on our relations with the Ayala Group of Companies, especially BPI," the Ayala Life official stressed.

The Ayala insurance group consists of BPI/MS Insurance Corp. (FEB Mitsui Marine), Universal Reinsurance Corp. (Universal Re), Ayala Plans, Ayala Health and Ayala Life.

Ayala Life was ranked sixth overall in the life insurance industry with nearly 40 players as of last year.