Manulife posts 40% premium growth

MANILA, Philippines - Manulife Financial Philippines posted a 40-percent growth in total premiums in 2010, or from P3.5 billion in 2009 to P4.9 billion, company officials said yesterday.

New business income (NBI) rose from a little over P700 million in 2009 to more than P1 billion in 2010. There are less than 10 life insurance companies in the country that can boast of recording NBIs of over P1 billion in a given year.

NBI refers to the total amount of premiums collected from new policies sold in a given year.

Of the total premiums generated in 2010, Manulife’s 2,200-strong sales agency force accounted for 68 percent, while its bancassurance distribution network accounted for 30 percent.

In the previous year, the sales force dominated premium generation accounting for 83 percent of total while bancassurance a mere 17 percent.

Last year, Manulife entered into a joint venture arrangement with China Banking Corp. of the SM Group to form Manulife China Bank Life Assurance Corp. to be able to practice bancassurance.

Bancassurance (also known as cross selling in the banking sector) refers to life insurance policies sold through the branch network of an allied banking institution.

“We achieved all our 2010 targets with a flourish,” Indren S. Naidoo, president and chief executive officer of Manulife Financial Philippines, said in a briefing yesterday.

Naidoo also indicated that they opened a total of six branches in 2010, bringing the total branch network to 20 nationwide. Branches opened last year are located in Iligan City, Gen. Santos City, Cagayan de Oro City, Isabela City, Laguna, and Ortigas in Metro Manila.

In the pipeline are additional branches in the cities of Cebu and Davao.