New York Life also continued to expand its operations in the country by setting up six new branch offices last year and established a bancassurance partnership with Allied Bank.
According to New York Life president and chief executive officer George May, the additional P350 million capital infusion will help the life insurer further its growth. It recently ramped up its annual sales target for 2003 to P200 million after reaching its objective of P100 million last year.
"More importantly, the new investment reflects New York Life’s confidence in the economy and the market," May said. "We’re banking on the National Government’s forecast of four percent gross domestic product (GDP) growth this year, and this investment is the best evidence of our belief that the Philippines can achieve this kind of growth. We’re definitely bullish on the market."
It has also improved its special marketing plans like bancassurance with the view of placing itself in strong competitive selling position in 2003.
In a press statement Robert Craddock, New York Life regional vice president for specialty marketing, the opportunities presented by the Bangko Sentral ng Pilipinas (BSP) recent approval of the cross selling regulations or bancassurance, coupled with a growing number of prospective selling partners have helped the company decide to accelerate its special marketing program in the country.
The bulk of the P350 million infusion is going to Insurance Commission (IC) approved government securities, with a small portion going to short-term time deposits for working capital purposes. "We’re going to make this money work for the local economy simply because the Philippine market’s continued growth is part of New York Life’s long term interests," the life insurer said.
New York Life’s vigorous investment strategy runs in stark contrast to the flurry of pullouts in the life insurance industry in 2002.
In 2002, two insurance giants – MetLife and AEGON Life Insurance – pulled out from the increasingly challenging Philippine life insurance market. Aside from Metlife and AEGON, eight other insurers left the Philippines the past years.