Insular Life revenues up 7% to P19.3B

MANILA, Philippines - Insular Life Assurance Co. Ltd. reported consolidated revenues of P19.3 billion last year, up seven percent from the previous year, with insurance revenues accounting for 65 percent of total revenues.

Insular Life chairman and chief executive officer Vicente R. Ayllon said the gains were bolstered by the 40 percent growth in new business premiums to P7.3 billion, while total premiums expanded 20 percent to P11.3 billion.

“This growth in both new business and total premiums was attributed to the company’s strong drive for product development and product innovation, higher productivity of all its sales units across the country, and continuous improvement in its sales and customer servicing capabilities,” Ayllon said during the company annual members’ meeting held recently at the corporate headquarters in Alabang Muntinlupa.

Consolidated assets went up six percent to P94.8 billion from P89.6 billion the previous year. It paid a total P8.3 billion in total policy benefits, including dividends, claims, surrenders maturities and survivorship benefits.

“We also set aside P49.6 billion worth of policy reserves to pay for future claims,” Ayllon added.

With a net worth of P27.9 billion, Insular Life’s reserves-to-business-in-force ratio now stands as the highest in the local insurance industry.

The company’s consolidated net income, however, dipped 25 percent to P2.4 billion from P3.2 billion a year ago due to the pre-termination of corporate loans of some of its borrowers, and lower dividends earned from the company’s strategic investments.

Ayllon said notwithstanding its strong sales performance last year, the insurer’s bottom line dropped by a quarter “because some of our corporate borrowers opted to pay their corporate loans ahead of term maturity to refinance and take advantage of the prevailing low interest rates.”

“Also, one of our major strategic investments opted to defer paying dividends to its shareholders in order to internally finance its business expansion plans,” the chief executive added.

Early this year, Insular Life offered a limited investment product I-Peso Enrich, which is a combination of life insurance, investment with 100-percent capital protection. It is also set to launch a number of product innovations that will give policyholders better options to grow their wealth.

Insular Life is the largest Filipino life insurance company and in the top three industry-wide in terms of assets and net worth.