MANILA, Philippines - AXA Philippines reported that its first year premiums (FYP) amounted to P930 million in the first three months of the year, 32.8-percent higher than the P700 million in the same period in 2012.
Total premium income grew roughly 74 percent to P4.7 billion from P2.7 billion in the first quarter of 2012. This increase was mainly driven by the 30-percent increase in sales of single premium contracts, while the new regular contracts increased 26 percent.
Industry wide, single premiums have reportedly doubled from 2011. However, this does not generate recurring business, which is the real blood stream of the insurance business.
Net income likewise nearly doubled to P324 million from P164 million last year.
AXA Philippines president and chief executive officer Severinus P.P. Hermans said that income was actually higher.
“But as an insurance company, we have to think long term and we need to establish reserves from future claims of our policies,†Hermans explained.
High on the agenda of AXA Philippines is the productivity of its exclusive agency force, and the financial executives (FEs), or advisers positioned within the branch network of the Metropolitan Bank & Trust Co. (Metrobank).
The life insurer has an agreement to practice bancassurance or cross selling within the branch network of Metrobank, and access to its bank’s existing clientele. Bancassurance allows AXA Philippines to sell insurance policies in Metrobank branches.
Presently, AXA Philippines has 450 FEs deployed in 600 Metrobank branches.
It is likewise preparing for the new regulations of the Bangko Sentral ng Pilipinas (BSP), which would allow other banks to practice bancassurance, as long as it has a CAMELS rating of three or better.