Banking

Insular Life net, investment incomes up double digits

January 16, 2007 | 12:00am

The Insular Life Assurance Corp. (Insular Life) has reported a net income of P1.23 billion in 2006, or 22 percent higher than the P1 billion recorded in 2005.

It also stated an asset base of P50 billion from P43 billion, which is the third highest in the life insurance industry.

Also impressive last year was the gross investment income, growing by a whopping 28 percent from P2.9 billion in 2005 to a record P3.7 billion.

Premium incomes likewise grew from P6.2 billion in 2005 to P6.3 billion with first-year premiums accounting for P2.1 billion.

Traditional business amounted to P732 million while contribution from marketing arragement with the Union Banking Corp. accounted for over P500 million.

"The impressive performance last year was bouyed by high interest income from government securities and corporate loans, higher dividend income from strong portfolio of equity investments, and rental income,"Mayo Jose B. Ongsingco, Insular Life president and chief operating officer, said.

Renewal business accounted for P2.1 billion which is better long-term business over single-pay premiums.

Total policy benefits paid amounted to P3.7 billion of which P944 million are dividends to individual policyholders. The amount was contributed by 20,000 new policyholders last year increasing the total customer base to 320,000.

Part of its key investments were lending to corporate. These includes: joining a consortium for Petron Corp.’s P6.3-billion corporate notes term issue; It also invested in the P5.8-billion preferred share offering of Ayala Corp.; and, the P300-million term loan of Toyota Financial Services Philippines Inc.

There was also lending to the Manila North Tollways Corp., Manila Water Corp., Aboitiz Equity Ventures Inc., and the International Container Terminal Services Inc.

Insular Life has 80 branches and 3,000 agents spread out nationwide. Of the total agency force, 24 are Million Dollar Round Table (MDRT) qualifiers last year, and 63 registered financial consultants.