Philamlife posts record total premiums of P14.5B in ’06

The Philippine American Life and General Insurance Co. (Philamlife) reported yesterday that their total premiums grew 18 percent to a record P14.5 billion last year, from P12.3 billion in 2005.

With this, Philamlife retains leadership, with other life insurance companies failing to reach the P10-billion mark in total premiums.

Philamlife president and chief executive officer Jose L. Cuisia Jr. said they realized a net income of P2.3 billion after paying taxes amounting to P1.6 billion.

Cuisia said gross revenues ballooned to P30.4 billion while investment income reached P11.8 billion.

Total assets expanded to P164.9 billion. Cuisia said that they have jumped the field by repricing their insurance products based on assumptions of low single digit interest rates. "We have repriced our products the year before based on conservative assumptions while the rest of the field has only started inputting the same this year," he added.

In December 2006, Philamlife introduced five new products that offer protection, savings and investments. It has started to reap the benefits of the early introduction of these products to the market while competition has just started repricing and introducing new products.

Philamlife is a member of the American International Group (AIG), which remains among the most profitable, and largest financial and insurance global players.

Based on company reports, Axa Philippines had total premiums of over P9 billion in 2006, followed by Sun Life of Canada with over P8 billion. Insular Life Assurance Corp. reported total premiums of P6.3 billion.

Philam Plans sees 15-percent sales growth

Philam Plans Inc., the country’s leading pre-need firm, expects sales to grow by more than 15 percent this year on the back of new, innovative product offerings.

Last year, Philam Plans continued to lord it over the pre-need industry with total sales reaching over P3.46 billion and its trust fund growing to P29.1 billion, most of which are secured in cash, cash equivalents as well as liquid assets such as government securities.

In a press briefing yesterday, Philam Plans president and chief executive officer Jack Howell said the company expects to perform even better this year, banking on the improved business environment. "We are once again very proud of our overall 2006 performance and how Philam Plans continued to maintain its lead in total pre-need sales in spite of the challenges and hurdles we faced last year. We now look forward to an even better 2007 as we continue to innovate and develop better ways to serve the financial needs of Filipinos everywhere," Howell said.

He said the company has introduced eight new products for launch this year as it seeks to further strengthen its dominant position in the highly-competitive industry. Just last month, it launched its revolutionary product, iPlan, the country’s first and only forfeit-free plan that will not allow planholders to lose their cash value due to lapse or even due to cancellation.

The pre-need firm is set to introduce three new products in June alone (one pension and one education). For August, it plans to introduce 2 memorial products and another two more for the remainder of the year.

The new products will be forfeit-free, participating and have a guaranteed return of interest.

Howell said the company expects to pay out over P1.192 billion in benefits this year, 51.6 percent higher than the P786.6 million paid in 2006 to a total of 20,410 planholders. — With Zinnia dela Peña