MANILA, Philippines - United Coconut Planters Life Assurance Corp. (Cocolife) is looking at expanding its premium income to P3.723 billion this year, or roughly 13 percent higher than the P3.2 billion recorded in 2012.
The modest growth target will be driven by higher sales of variable or unit linked products (life insurance with investment features) and a 95-percent collection efficiency ratio of premiums in the group and healthcare segment.
Target net income for the year is likewise a conservative 11-percent increase to P360 million, and a return on equity of 13 percent.
In a presentation, Cocolife president Alfred C. Tumacder Jr. explained that the modest gains would come from major programs which would implement persistency programs through call center; establish a conservation unit; attain 95-percent collection efficiency ratio for premium receiveables of group and healthcare; and implement enterprise risk management.
Likewise, Tumacder said Cocolife would increase its sale of variable unit linked products as well as introduce new ones. It would likewise maximize its bancassurance arrangement with parent bank, United Coconut Planters Bank (UCPB).
The life insurer has a distribution channel composed of 2,112 sales agents operating out of the 68 branches nationwide, direct marketing, bancassurance, brokers, microfinance institutions (MFIs), and farmers groups and cooperatives.
“We will expand our mutual fund business and investments division,†Cocolife’s chief executive said, adding that their investment income target is expected to reach P875 million this year.
In the past five months of 2013, Cocolife realized an increase of 17.9 percent in total premiums 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 introduction and sale of variable life products amounting to P174.4 million 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 outlook as it grew to 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 the P352 million realized in last year.
The insurer’s premiums come from individual, group, farmers, healthcare, and micro-insurance.
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 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.
At the end of May, assets under management (AUMs) stood at P2.5 billion.