AXA Philippines premiums expand to P8B end-May
After the first five months of 2007, AXA Philippines has accumulated total premium income of a little over P8 billion.
Company officials estimate that roughly 80 percent of income are unit-linked products, or products that offer both investment and protection.
AXA Philippines is a joint venture between the Metropolitan Bank and Trust Co. (Metrobank) and AXA of France, one of the leading global insurer and financial institution.
New business index (NBI) almost breached the P1-billion ceiling in the first five months of the year, or a growth of more than 180 percent from the previous year. The NBI is a measure of sales performance used in the insurance industry.
Profits in the same period rose to more than P300 million, reportedly 400 percent better than in the same period last year.
AXA Philippines president and chief executive officer Andrew D. Alcid said that reaching the P1-billion mark this early proves that AXA has gained the confidence of consumers for acquiring insurance protection and making investments.
“This is indeed a remarkable feat for AXA,” Alcid added.
With an average annual growth rates of 30 percent since 2003, AXA Philippines outperformed itself in 2006 by posting a staggering 98 percent growth in premium income.
With P9.06 billion in total premiums last year, it may place the Metrobank strategic partner as the second largest life insurer in terms of premium income, up two places from its fourth place ranking in 2005. Official 2006 figures are expected to be released sometime in August.
New business last year reached a record P1.22 billion, or 69 percent better over the previous year’s P721 million (growth in 2005 was at 14 percent).
Meanwhile, Alcid attributes the strong five months performance in premium income to its variable or investment-laced insurance products, specifically the latest Honey Pot policy.
The Honey Pot Peso policy not only provides protection, but additional living benefits.
Honey Pot is an investment-linked insurance policy that integrates insurance protection and investment into one plan. The investment components of all of AXA’s variable life plans are pooled together and managed by investment professionals or fund managers who strategically place these funds in a variety of financial instruments and sectors. This product is available in both peso and US dollar denominations.
In fact, Alcid explains that its Honey products have found similar success throughout the region. The blueprint for this was developed from AXA’s global network of more than 47 countries worldwide. This is one reason why AXA is the largest life insurer in the world.
Meanwhile, the insurance industry continues to experience consolidation.
Nippon Life Assurance Corp. has sold out its business to the sister company Great Pacific Life Assurance Corp. (Grepalife). Both are allied with the Yuchengco group of companies, ranked among the top 20 insurers in the past few years.
With the acquisition, Grepalife will likely come closer to the top five players. In 2005, it was ranked ninth overall while Nippon Life was ranked 13th.
In the same period, Grepalife reported total premium income of a little over P1 billion while Nippon Life has nearly P600 million.
New York Life Assurance
Industry reports indicate that the two foreign insurers was putting greater emphasis in its business in mainland
Generali Pilipinas Life Assurance Co. Inc. and Generali Pilipinas Insurance Co. Inc. completed the documentation requirements necessary for their full compliance with the new capitalization guidelines set under Department Order 27-06.
The commission admitted the companies’ funds in escrow, which, together with the additional capital infusion made by the stockholders, raise both insurers’ respective net worth to over P300 million, an amount above the minimum of P100 million for the period 2006.
Generali Pilipinas Life Assurance Co. and Generali Pilipinas Insurance Co. are both owned by Generali Pilipinas Holding Co. Inc., a joint venture of the Italian insurance group Assisurazioni Generali with Jerneh Berhad Asia and Banco de Oro Universal Bank.
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