Sun Life bullish on growth

MANILA, Philippines - Sun Life Financial Philippines remains confident its total premium growth this year will surpass its performance last year.

Initial reports show that the combined weighted new business (first year premiums) grew by 136 percent in the April to June period. In the first quarter of the year, total premium income grew 96 percent.

Sun Life Financial Philippines president and chief executive officer Rizalina Mantaring estimates that total premium income for the first semester will be bigger than the some period last year.

“2013 will be stronger than 2012,” Mantaring said, at the formal launching of its financial literacy program, Brighter Life.

The second quarter premiums represent the combined sales of both Sun Life of Canada (Philippines) Inc., the life insurance company of the group, and SunLife Grepa, the bancassurance joint venture company between the Rizal Commercial Banking Corp., (RCBC) and Sun Life Financial.

Between 75 to 80 percent of total premiums are generated by SunLife of Canada, and the balance emanating from SunLife Grepa.

“In fact, the July to August premiums are just as strong as the second quarter,” Mantaring confided.

She observed that single premiums, albeit still among the best sellers, did not do as well as in previous years.

The chief executive explained that investors have been moving on the sidelines as the markets turned volatile.

However, the country’s fundamentals remained strong as evidenced by the first semester gross domestic product (GDP) of 7.6 percent. The Philippine economy is forecast to equal, if not surpass, the higher end of the government estimates of six- to seven-percent growth rate.

Sun Life Financial manages 5,000 financial advisers (agents), while SunLife Grepa runs 1,000 agents, of which 200 are based in RCBC branches.

Sun Life ended 2012 with total premium income of P20.06 billion, retaining for the second consecutive year the top life insurance industry leadership. In 2011, gross premiums amounted to P13.8 billion. 

Combined sales of both Sun Life of Canada and Sun Life Grepa in the same period, amounted to P26 billion.

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