Ayala Life posts 157% growth in first quarter

CEBU, Philippines - Its aggressive move to increase distribution channels amid a sluggish investment market help buoyed the performance of Ayala Life Assurance Inc. posting a 157 percent growth in the first quarter of this year.

Total premium reached P2.4 billion from P933 million in the same period of last year.    

The company reported that the first premium registered a record high growth rate of 401.99 percent due to increases in the volume of business generated by all the distribution channels, such as Ayala Life’s Bancassurance Channel, Alternative Distribution Channel and Agency Force which grew by 688 percent and 35 percent respectively, basing on the same period reference.

“The increase is driven by the growing distribution channel namely, Agency Force, Alternative Channels, Bancassurance and Group Insurance as well the timely introduction of new products that fit the current needs of individuals in search for guaranteed protection and savings” said Ayala Life Officer-In-Charge Ma. Asuncion D. Martin.

Despite the economic slowdown, Ayala Life has managed to exceed its revenue for year 2008 full year performance as well as its 2009 full year revenue target. Ayala Life maintains its position as one of the top insurance providers and continues to perform outstandingly well.

The company’s net income of P172.6 million for the first semester of 2009 is 6.85 percent higher than last year’s net income. It has also paid out a total of P 625.6 million in benefits to its policyholders to date.

A majority-owned subsidiary of the Bank of the Philippine Islands, Ayala Life offers a comprehensive range of insurance products and other related financial services that include individual and group life insurance, salary savings insurance, and insurance with investment outlets that are designed with the same innovation and dependability that BPI is known for.     

“For 2009, we are keen on replicating if not exceed our 1st semester performance by developing products, venturing into untapped markets and strengthening our distribution capabilities. We are determined to seize the opportunities that allow us to excel and transcend the ordeals that we may face at present and in the future,” Martin said.

Earlier, Bank of the Philippine Islands (BPI) Capital Corporation president Teodoro K. Limcaoco said that the company has huge confidence in Cebu market it smashed the P28 million target in 2008, and hit a P37 million first year premium clients.

“There’s really a lot of wealth in Cebu. Cebuanos are savvy on how they invest. They look for companies that offer security and decent yield. Before, yield was very important for them, now it become secondary priority to safety,” Limcaoco said.

Ayala Life, which only captured a minimal market share in the entire life insurance business in the country, has recently started its aggressive marketing and promotional activities to take advantage the “hungry” market, he said.