Insular Life expects premium income to hit P7.4B this yr

Insular Life Assurance Co., the third largest life insurance firm in the country, is targeting a premium income of P7.4 billion and a net income of roughly P960 million this year.

The target figures indicate that Insular Life would post an average growth rate of 15 percent for both premium and net income this year. Premium income for 2003 was recorded at P6.4 billion while net income stood at P836 million.

The company’s first-year premiums (FYP) last year was at an impressive P2 billion, buoyed mainly by single premiums and dollar-denominated products.

Mayo Jose B. Ongsingco, Insular Life president and chief operating officer, said that they will target overseas Filipino workers (OFWs), professionals, and high-worth individuals to ensure meeting its full year target.

Ongsingco added that they will improve collections and introduce new products, both regular and single-premiums.

In the first four months of the year alone, Insular Life recorded a premium income of P1.8 billion with renewals worth P1.4 billion and FYP at P325 million. Dollar-denominated products accounted for approximately P263 million.

Of the company’s full-year premiums this year, FYP and single premiums are expected to account for one-third of its target premiums, with the remaining two-thirds in renewals.

Meanwhile, investments grew by 170 percent in the first four months of the year and is expected to remain in the double-digit level. Most investments, though, will remain in fixed income investment products and balanced funds.

By the last quarter of the year at the earliest, Insular Life plans to launch its variable life insurance product. So far, only three insurers are offering variable life products: PhilAxa Life, Pru-Life of the UK and Manulife Phils.

A variable product is both a life insurance policy and an investment product. It is one of the more popular and productive life insurance products globally.