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Philippine American Life and General Insurance Company (PhilamLife) sees substantial growth in the Filipino-Chinese market in the Philippines investing into insurance products.

"We have seen substantial growth from the high net worth and Filipino Chinese markets, most of whom prefer investments oriented products," said Philamlife president and chief executive officer (CEO) Jose L. Cuisa Jr.

The company reported a record P14.5 billion in total premium income in 2006, a 14.9 percent increase versus the previous year.

In a statement, Philamlife reported that new business premiums increased 41.2 percent to P4.7 billion.

"Our excellent new business growth was driven by the remarkable sales performance of variable products and a stronger contribution from the agency," said Cuisa who is also the president of AIG (American International Group).

Cuisa added that variable life has been an enormous success, and reflects the public's growing desire for alternative investment outlets that offer potential higher returns.

In terms of distribution channels, the company's agency force had a record year, boosted by intensified training and support programs organized by the company.

Bancassurance sales remained solid, reaching its highest level since Philam Equitable Life Assurance Company (PELAC) began operations in 2003. PELAC generated P1.18 billion in total premiums, with an excellent first year premium growth of 106.8 percent in 2006.

The company's consolidated total assets increased 24.5 percent to P164.9 billion as at December 31, 2006. Stockholders' equity also grew 43.4 percent to P55.1 billion.

Philamlife remains one of the largest institutional investors in the country, with total invested assets of P157.1 billion as at December 31, 2006, up 26.0 percent versus the previous year.

The majority of the company's investments are placed in long-term government securities and prime locally listed stocks. Investment income reached P11.8 billion, 7 percent higher than the previous year.

The company posted gross revenues of P30.4 billion in 2006. Benefits paid reached P5.3 billion, growing by 9.8 percent compared to 2005. Philamlife generated net income of P2.3 billion, and paid taxes to the government amounting to P1.6 billion in 2006.

"Our product development efforts continue to pay off as seen from the success of our AIG Money Tree variable life products. In early December 2006, we introduced a new generation of products that offer attractive solutions to education savings, investment, life protection and retirement insurance needs. The new products have garnered increasing interest from clients. In 2006, we also launched AKSITEXT, the country's first micro-insurance product," Cuisa added.

Philamlife's affiliate business includes a wide range of diversified financial services in health care, pre-need plans, mutual funds, credit cards, banking, property and casualty insurance, and property development.

Philamlife is a member company of American International Group, Inc. (AIG).