Generali Pilipinas prepares for major leap forward

MANILA, Philippines - Life insurer Generali Pilipinas is building up momentum to prepare for a major leap forward.

Generali Pilipinas is a joint venture between Assicurazioni Generali of Italy, Jerneh Asia Berhad of Malaysia, and Banco de Oro Unibank Inc. (BDO).

Generali Pilipinas president and chief executive officer Renato Vergel de Dios pointed out that he had initiated a “make-over” in 2009 despite being a good year for the insurer.

That was also the year when Philam Equitable Life Assurance Co. (Pelac) terminated its contract with BDO, a contract inherited by the commercial bank by virtue of its acquiring Equitable PCI Bank.

“In the previous arrangement through bancassurance (with BDO), Pelac would sell variables, and Generali Pilipinas would concentrate on the traditional policies,” Vergel de Dios explained.

“Last year was concentrated on putting things in place, starting with a management team and a reorientation,” he added.

The ‘make-over’ resulted in a drop in overall premiums as Generali Pilipinas adopted a lean-and-mean approach as well as placed certain activities in the backburner.

Available data indicated that total premium income in 2010 regrouped to P1.7 billion from P3.2 billion in 2009.

However, the recurring business premiums expanded 167 percent from P220 million in 2009 to P550 million last year. Regular premiums rose to almost a 100 percent from bancassurance.

Annual premium equivalent in new business last year rose 18 percent to P567 million against P479 million in 2009.

That was a conscious result of not selling single-premiums, or one-time pay for a life insurance policy.

The strategy is that 2011 is a more profitable year with recurring business potentials, and a better marketing product mix.

Part of the improving infrastructure is the sales force composed mainly of company agents and financial advisors (FAs) deployed in the branch network of BDO.

Generali Pilipinas’ agency force has since been trimmed by over half of the original number.

In contrast, the FA force grew to 329 at the start of the second quarter of 2011 from roughly 250 at the end of December last year. BDO has over 700 branches nationwide.

“We refined and grew sales force both in number and quality, with the principal focus on the bancassurance group. We now have the right working chemistry between FAs and branch managers,” Vergel de Dios said.