From P166-million worth of first-year premiums last year, Pioneer Life is looking at new businesses worth approximately P400 million. It stood at P174 million including its health insurance products last year. Gross written premiums (GWP) was recorded at over P355 million last year for the life sector from P270 million. Including the health insurance production, GWP reached P368 million.
Total assets grew from P1.32 billion in 2001 to P1.86 billion last year.
However, Pioneer Life chief executive officer Lorenzo O Chan Jr. said that the targets would be reviewed quarterly for possible revisions if necessary as it was set last year while still allied with Allianz AG.
"Things are looking good while we are assessing the impact of the disengagement," Chan said. "Other than that, it is business as usual."
The Pioneer Insurance Group bought out the 50-percent equity stake of Allianz AG recently. Allianz officials in a statement said that its global operations have been "hit" but the huge claims paid for the large number of natural and man-made catastrophes including the Sept. 11 terrorist bombing.
The German global insurer and financial conglomerate had been rationalizing its global operations including the Asia Pacific region.
Nonetheless, the present optimism of the new life insurer is hinged on plans to forge alliances or tie-ups Chan said that they have been exploring tie-ups with consumer companies as well as looking at prospects for practicing bancassurance.
"We are looking at the insurance prospects for the needs of these consumer companies per sector. Pioneer Life is also open to practicing bancassurance if there is a good opportunity," the life insurance chief executive pointed out.
Bancassurance is basically an alliance between a bank and an insurer wherein the insurer sells its products in the bank’s premises as well as taps the bank’s client base. The arrangement allows the bank meanwhile to offer the insurance products as among its consumer products thus enhancing its banking products.
Pioneer Life is looking at both domestic and foreign commercial banks for a bancassurance alliance. "Depends on their priorities."
Pioneer and Allianz AG will continue to work together in terms of reinsurance and as a cooperative partner for both the life and non-life operations of the Pioneer group. – TPT