Insular Life net income up 11%

MANILA, Philippines - Largest Filipino-owned life insurer Insular Life posted an 11-percent increase in its net income to P3.2 billion in 2012, from P2.9 billion in 2011.

In a statement, Insular Life said the income growth could be attributed to a steady stream of revenues and prudent management of resources.

Insular Life chairman and chief executive officer Vicente R. Ayllon said the company’s earnings have consistently increased every year to solidify its claim as one of the top three most profitable companies in the entire insurance industry. 

 â€œNet income is the best indication of how well a company is managed, and how much it is growing.  Insular Life has had a steady growth in net income for decades and in 2012, our net income jumped over the P3 billion level, and this would most likely land us again in the top three most profitable insurance companies in the country,” said Ayllon.

Consolidated total revenues went up by 16 percent to P18 billion from P15.6 billion, on the back of higher insurance and operating revenues.

Premium income from insurance contracts rose by 20 percent, while investment income, the primary driver of operating revenues was up by 11 percent. 

A total of P8.7 billion in policyholder benefits, claims and maturities were released to individual and group policyholders, up by 35 percent from the previous year.

Consolidated assets and members’ equity also saw a significant increase of 11 percent to P90 billion and P23 billion, respectively. 

The company’s assets and members’ equity are also among the highest in the industry.

Ayllon said the economic upswing and the heightened interest of the market for its investment-linked products, coupled with a highly motivated sales force, enabled the company to achieve outstanding results in 2012. 

“In 2012, we launched a series of new products, including two structured variable unit-linked (VUL) products, and a peso-denominated VUL product with a limited offer,” Ayllon said.

These products, Ayllon said, are well suited to people with varying risk appetites.