Phl Prudential premium income up 18% to P11.9 B in 2013

MANILA, Philippines - Philippine Prudential Life Insurance Co. Inc. has reported that its net income grew 18 percent in 2013, or from P10.1 million in 2012 to P11.9 million.

In his report to stockholders, Philippine Prudential president and chief executive officer Gregorio D. Mercado said that gross premium income improved 10.3 percent to P1.136 billion in 2013 from P1.030 billion the year before.

Total assets grew by 13 percent to P1.073 billion, while total investments went up to P509.2 million, or an increase of 9.4 percent. Total equity by end of 2013 was P420 million, 17 percent higher than that of the previous year.

To comply with current regulations on capitalization set by the Insurance Commission (IC), the insurer increased paid-up capital to P250 million in 2013.

Mercado said the move would further ensure the company’s financial stability, security, sustainable viability and profitability.

According to Mercado, net income grew despite operational and expansion costs as the company embarked on rationalizing its operations while maintaining its nationwide reach.

“We have to manage our costs by streamlining and optimizing our operations and resources, including the consolidation of some sales offices to other existing or new nearby offices with higher sales traffic and potential,” the chief executive said.

Last year, Philippine Prudential inaugurated sales offices in Baguio, Gateway Mall in Cubao, Binondo, Davao, and Naga.

The insurer also acquired Premia, an award-winning insurance management software from leading Singapore-based developer 3i Infotech that would help increase productivity by boosting efficiency and simplifying daily tasks.  He added that the upgrade is under way and that many operational processes have already migrated to the new system.

Looking forward, Mercado said their outlook for 2014 continues to be positive, with the company having adjusted and adapted well to the demands of change and progress.

“We are very pleased to note that our earlier plans to provide medical insurance are fully under way and have generated promising results,” he said.

The first wave of medical insurance products, their new Medical Distribution Channel, already generated sales activity and will continue to further boost premium income and profits this year.

Philippine Prudential launched last month its individual health insurance product, Optimum Health Plan.