Sun Life bancassurance unit sees banner year in premiums

MANILA, Philippines - Sun Life Grepa Financial Inc. (SLGFI) expects to end the year on a high note with total premium income rising to P12 billion, over 50 percent more than the P7 billion recorded last year.

SLGFI is a joint venture bancassurance company between the Yuchengco Group of Companies and Sun Life Financial Philippines. The joint venture sells life insurance policies through the branch network of Rizal Commercial Banking Corp. (RCBC), another Yuchengco Group member.

In the first six months of 2015 alone, the company reported a 61-percent increase in first-year premiums to over P1 billion.

“Barring any economic volatilities, 2015 could become a banner year for Sun Life Grepa,” SLGFI president Richard S. Lim said.

Total premium income reached P11.9 billion in 2013, a banner harvest not only for the joint venture company but for the country’s life insurance industry. Total premium income hit a record P171 billion that year, before slipping to P158 billion in 2014.

Lim explained since its establishment in 2011, SLGFI reported a 40-percent average annual growth rate.

Part of the insurer’s optimism is the continued expansion of the distribution channels.

Aside from 280 sales executives positioned within the 450 RCBC branches, the SLGFI also fields more than 700 non-bancassurance agents. Parent company Sun Life Financial manages over 7,000 sales agents.

Lim likewise said while single-pay premiums still account for nearly 60-percent of premiums, regular premiums have increased their share. He explained single-pay premiums bring in the huge amounts but regular premiums bring in recurring revenues.

SLGFI is the third best performing bancassurance company in the Philippines and ranked eight overall life insurance company among the 33-strong players in the industry.