Pioneer Life premiums up 60% in 2013

MANILA, Philippines - Pioneer Life is looking to increase its total premium income to P3.5 billion this year, over 60 percent higher than the P2.16 billion it recorded last year.

Pioneer Life senior vice president for professional sales agency Rolando A. Robles said that the life insurance arm of the Pioneer Insurance Group of Companies would be introducing new insurance and investment products this year.

“There is still a large amount of investors in the special deposit accounts (SDAs) that are still looking for investment alternatives,” Robles said. “There are also investors that are looking for investments placed outside the Philippines.”

The 54 percent growth in total premiums in 2013, as compared to the P1.4 billion in 2012 already proves that there remains strong appetite for investments.

Last year, Pioneer Life introduced variable unit linked (VUL) products that also focused on overseas investments or dollar-denominated investments.

He attributes the growth of VUL sales to the market’s increasing awareness of the products as ideal for wealth management, and as a means to accumulate funds to meet future financial needs.

“Our financial advisers not only share the advantages of VUL as an important part of any investor’s portfolio, but likewise assure their clients that with Pioneer they are poised to take full advantage of expertly managed fund,” he added.

Contributors to the total premium income are traditional and VUL products, group products, and microinsurance products.

Total traditional and VULs amounted to P1.5 billion last year from P897 million in 2012 while total group insurance grew from P423.7 million to P488.49 million last year. 

Microinsurance, which is focused on the lower income segment of society expanded by 85 percent from P124 million in 2012 to P175.48 million.

First year premiums last year from traditional products shrunk to P45.87 million, down from the P155.79 million in 2012.

“Reason is that Pioneer Life has stopped selling traditional life insurance in favor of VUL products,” Robles pointed out.

Gross premium from single premiums grew over 260 percent to P914.74 million last year from the P276.69 million in 2012. Original full year 2013 target was P677.74 million.