MANILA, Philippines - The local unit of Canadian insurance giant Manulife is looking at another strong performance this year as it continues aggressively expanding its distribution channels, introducing new life products, increasing sales of life insurance and microinsurance products, and re-positioning its revitalized pre-need company.
“We expect to grow as strong as 2011,” said Indren Naidoo, president and chief executive officer of Manulife Philippines.
In the first three months of 2012, total premiums and deposits grew 50.2 percent to P2.4 billion or from P1.63 billion in first three months of 2011.
Last year, total premium income amounted to P7.4 billion, a major leap from the P3.97 billion in 2010. Manulife ranked as the fifth largest life insurer in terms of total premium income in the Philippine life insurance sector.
Traditionally, the second semester registers stronger sales compared to the first semester. But what may stall this advance is the prevailing low interest rate environment, which has forced Manulife Philippines and other insurers to re-price policies. Insurers are required by law to invest heavily on fixed income and government securities.
“We have also introduced new innovative products that have the new rate assumptions,” Naidoo said.
He said Manulife Philippines will increase its agency force from the present 3,200 to 4,000 by the end of the year. By 2014, the insurer’s target is a total of 6,000 agents.
These will be complemented by the expansion of its branch network, which will reach 30 by the end of the year, or by another 10 new branches this year added to the existing 20.
“I want that to hit 40 by the end of 2014,” the chief executive said, adding that each branch must have at least 100 agents.
The number of financial executives (FEs) is likewise targeted to hit 250 by end-2012. FEs are financial advisers based inside the premise of its bancassurance joint venture partner – China Banking Corp. (China Bank).
Naidoo, however, admitted that the number of FEs depends on the rate of branch expansion of China Bank, which stood at 293 at the end of 2011. Bank officials said 15 to 20 new branches are planned in 2012.
Manulife Financial Plans Inc. has also been revived this year, after it took a leave in 2010, as the insurer wanted to test the regulatory environment established by the Insurance Commission (IC), which took over the regulatory functions from the Securities and Exchange Commission.
This time, Manulife will focus solely on selling pension plans, for both individual and corporate accounts.
“There is a market for pension, either corporate (like group insurance) or individual. And we have made all the necessary reserves and funds to strengthen it from any shocks,” Naidoo said.
Last year, Manulife Philippines introduced microinsurance policies. Presently, there are a thousand microinsurance policies held by individuals in Davao through its distribution partnership with non-government organization (NGO) Damas Foundation Inc.