AXA premium income up to P16.3B in 2007

AXA Philippines has reported total premium income of P16.3 billion last year, 80 percent higher than the 2006 figures of P9.1 billion. Total premium income in 2005 was P4.6 billion. 

New business grew by 82 percent to P2 billion in the same period.  “Last year’s performance is a reflection of AXA’s commitment towards market leadership,” Andrew D. Alcid, AXA Philippines president and chief executive officer, said in a statement.

One of the keys to AXA’s growth is its continued market dominance among investment-linked products (ILPs), considered the next generation of life insurance products. Also called variable insurance or unit-linked products, it combines the advantages of life insurance protection with the upside growth potential of investment funds in one product. 

AXA is currently the dominant market leader in ILPs, holding over 53-percent share of the market based on the 2006 IC report. However, with a 93-percent growth in its 2007 ILP business, AXA is expected to further strengthen market leadership in this segment.

The success of AXA’s variable insurance is strongly reflected by the 48-percent growth in their total funds under management, from P23 billion in 2006 to P34 billion in 2007.

Its bancassurance channel likewise contributed significantly to its phenomenal premium growth. Bancassurance is the practice of selling insurance products through banks. 

AXA Philippines is a joint venture between the Metrobank Group and the AXA Group, global expert in insurance and investments.

Bancassurance business grew by 90 percent in terms of both new business sales and premium income in 2007, contributing to over 80 percent of the insurer’s business. But AXA’s growth was not limited to the bancassurance channel as its traditional agencies channel also posted 40-percent growth in both premium income and new business sales.  Last year’s net income expanded to P821 million, or 53 percent better than the P537 million in 2006.  It is also almost 10 times their net income of P87 million in 2005.             — TPT