Insurance industry grows 15% in 2000 despite crisis

The insurance industry is estimated to have grown by 12 percent to 15 percent in 2000 despite the political crisis that rocked the country in the last quarter triggered by charges of graft and corruption against then President Joseph Estrada.

Manulife Financial grew by 25 percent in terms of first-year premiums, slightly below its target of 30 percent.

"It was important that we performed quite well in the first three quarters of the year," Manulife Financial’s Renato A. Vergel de Dios said, adding that the company’s earlier performance served to cushion the impact of the last quarter.

Vergel de Dios said the situation was aggravated by limited investment options as the country’s stock market, property sector and commercial papers remained unattractive.

Citing practically the same reasons, Jose L. Cuisia Jr., president and chief executive officer of the Philippine American Life and General Insurance Co., said his company failed to achieve its 20 percent growth target for 2000.

Philamlife is the leading life insurance company in the country while Manulife is ranked fourth.

Cuisia and Vergel de Dios expressed confidence that business will improve this year as long as the new administration will stick to its promise of transparency and good governance.

There are 40 life insurance companies in the country. They contributed P22.227 billion in capital funds in 1999. Industry sources said the figure for 2000 should be slightly higher.