MANILA, Philippines - The local unit of Canadian insurance giant Manulife has reported an increase of roughly 70 percent in gross premium income, or from P7 billion in 2011 to P12 billion last year.
First-year premiums on insurance sales alone amounted to P1.5 billion.
First-year premiums are new sales acquired in a given year, as insurance has renewal businesses or payments or premiums from earlier sales, in the form of quarterly, semi-annual or annual payments.
Renewal business reached almost half of gross premiums while single-pay premiums (mainly investment-linked) accounted for the remaining premium income.
About five to six percent of the total are in group insurance and microinsurance.
Manulife Philippines is a wholly-owned domestic subsidiary of Manulife Financial Corp., a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. It is listed at the New York Stock Exchange, the Philippine Stock Exchange, as well as other leading bourses globally.
Manulife Philippines president and chief executive officer Indren Naidoo said wealth sales (or the investment component of the insurance products) amounted to P6.5 billion.
In the fourth quarter alone, wealth sales increased 191 percent over the same quarter in 2011, driven by the strong performance of its investment-linked funds and the market’s overwhelming reception to the US dollar-denominated ASEAN Growth Fund (AGF).
Total funds under management grew 27 percent to over P62.5 billion, a record high for the life insurer.
Bulk of sales came from its nearly 4,000-agency force, which grew from 3,100 in 2011. It has 28 branches nationwide, which is targeted to reach 40 by 2014, complemented by 6,000 agents.
Naidoo said Manulife Financial remains positive towards the Philippine economy this year.
“There remains a huge opportunity in the Philippines with its low penetration rate,†he added.
“We will continue to innovate, create products desired by the market that are well above what the savings, time deposits, and the special deposit account (SDA) can offer,†Naidoo added.