Cocolife premiums rise 18% to P1.73 B

MANILA, Philippines - United Coconut Planters Life Assurance Corp. (Cocolife) recorded an increase of 18 percent in total premiums in the first five months of 2013 to P1.73 billion from P1.47 billion in the same period in 2012.

Renewal premiums ballooned to P1.08 billion up 33.5 percent from P810 million in the same period last year.

The gains were tempered by lower first year premiums of P355 million, lower by 37 percent from P564 million last year.

Nonetheless, the introduction and sale of variable life (with investment features) amounting to P174.4 million more than compensated for the lower-than-expected new business. In fact, it recorded a more than 200-percent expansion from the P54 million realized in 2012.

Micro-insurance products likewise added fuel to the positive overall growth as it recorded premiums worth P81.5 million.

That has resulted in a net income of P217.09 million this year, roughly 34.8-percent higher than the P161.6 million recorded in the same period last year.

Investment income likewise ballooned 22.2 percent to P430.5 million this year, from P352 million realized last year.

The insurer’s premiums come from individual, group, farmers, healthcare, and micro-insurance.

“Overall, we are doing better than 2012 and so far, we are on track with the 2013 targets,” Alfredo C. Tumacder Jr., Cocolife president, said.

At the end of May this year, total accounts reached 1,508 equivalent to 3.4 million policies-in-force. The bulk of the accounts, or 1,124, are actually group corporate accounts followed by farmers.

The rest are healthcare accounts, individual and migrant workers, numbering nearly 44,000 individuals. Cocolife is one of seven life insurers that are also focused on extending protection to overseas Filipinos.

Distribution channels include 2,112 sales agents through 68 branches nationwide, direct marketing, bancassurance through affiliate United Coconut Planters Bank (UCPB), brokers, microfinance institutions (MFIs), and farmers groups and cooperatives.

At the end of May, assets under management (AUMs) stood at P2.5 billion.

In 2012, total premium income stood at P3.26 billion, securing Cocolife’s place in the top 10 performers among the country’s 32-strong life insurers.

Investment income stood at P983 million and net income at P326 million.

Individual accounts rose 16 percent, group accounts 33 percent and healthcare accounts 14 percent.

Total gross premium income of the country’s life insurance industry ballooned to P44.3 billion in the first quarter of 2013, or 73 percent higher than the P25.6 billion in the same period last year.

Life insurers reported total gross premium income of P119.4 billion in 2012, up 38.3 percent from the premium income of P86.3 billion in 2011.

Data from the Insurance Commission (IC) likewise show that total investment in the first three months of 2013 expanded to P45.2 billion, 3.87 percent higher than the P41.6 billion last year.

Net income grew 29.5 percent to P3.3 billion this year, from the P2.6 billion in the same period in 2012.

Benefit payments grew 25.4 percent to P12.6 billion from January to March 2013 from P10 billion in the same period last year.

Total assets of the life insurance sector reached P585.7 billion in the first quarter of 2013, up 13 percent from the P518 billion in the same period last year.