Philam Life posted a robust growth in consolidated gross premiums last year and the insurance company expects its expansion to remain strong this year on the back of its aggressive push for more positive changes.
In a briefing Rex Mendoza, Philam Life president and chief executive said yesterday that the company posted close to P27 billion in consolidated gross premiums in 2012, up by 33 percent from P19.4 billion in the previous year.
"Philam Life is in the midst of transformation and renewal. We are more aggressive now to push for more positive changes to sustain our growth. This year, we are determined more than ever to change the landscape of the financial services industry," Mendoza said.
Mendoza disclosed that Philam Life posted a 13 percent increase in gross premiums to P15.4 billion last year while its bancassurance arm, Bank of Philippine Islands (BPI) - Philam, registered a 78 percent increase to P11.5 billion in gross premiums.
Mendoza said bancassurance is among Philam Life's strongest distribution channels, wherein insurance products are offered to clients through its bank partner, the BPI.
In December 2012 to February this year, Philam Life's consolidated premium income increased by 39 percent year-on-year, Mendoza said.
The official also noted that Philam Life continued to benefit from the growth of Unit Linked Products (ULP) which are insurance products tied to investments.
"Given the unprecedented growth of the Philippine economy amid increasing investor confidence, people are more inclined to purchase higher yielding investment products," Mendoza said.
Philam Life posted a 43.9 percent increase in first year premiums (FYP) while BPI-Philam registered 96.6 percent growth in FYP compared to 2011. Combined, that translates into over 75 percent growth from 2011. ULPs comprise over 90 percent of the companies' total new premiums.
Mendoza also underscored the aggressive recruitment of financial advisors as a major contributing factor to the company's growth.
As of May 2013, 78 percent of their financial advisors already possess a license to sell ULPs.
Mendoza also highlighted the importance of two valuable growth metrics that a life insurance company measures itself against: Annualized New Premiums (ANP) and Value of New Business (VONB).
"Our annualized new premiums of P3.79 billion is 255 percent of the P1.485 billion production we had in 2009. So we more than doubled our numbers in three years," Mendoza said.
"In value of new business, we grew by almost 50 percent from P773 million in 2011 to P1.152 billion last year," he added.