MANILA, Philippines - The fastest growing market of global insurer Prudential plc (UK) is Asia, and its fastest growing market in Asia is the Philippines.
Prudential Corp. Asia (PCA) chief executive Barry Stowe said that new business profit (in 2012) in Asia grew at 18 percent, while new business of the entire Prudential plc group expanded by 14 percent.
New business or first year premiums in the Philippines ballooned by a whopping 60 percent.
Stowe added that group profits grew by 20 percent, led by the 26 percent profits registered by its Asia operations.
“We generated over a billion pounds in earnings in Asia last year. Seven years ago, it was less than 200 million pounds,†the visiting Asia chief executive said.
PCA offers life insurance, fund management or consumer finance in 14 markets and 13 million customers across Asia. Pru Life UK, which offers a wide range of savings, protection (life insurance) and investment products (unit-linked or variable insurance products), is the subsidiary of PCA.
Pru Life UK ranked fourth in terms of total premium income in 2011.
However, Pru Life UK has to sustain similar growth momentum to be able to come close to their counterparts in other parts of Asia.
It accounts for roughly three percent share of PCA’s market.
Indonesia is PCA’s leader in new business last year, accounting for 24 percent market share or roughly 446 million pounds, followed by Hong Kong with 396 million pounds.
Singapore, Malaysia, Taiwan, India, Korea and China are the rest of the key areas with major contributions for PCA.
Nonetheless, Stowe said PCA remains extremely bullish over its Philippines operations.
The country’s gross domestic product (GDP) grew by an impressive 6.6 percent last year with the general outlook in favor of an average six percent this year.
Household income has been expanding and the consumer market continuous to fuel growth.
“There is nothing in the horizon that could change our fundamental view of the Philippine growth environment. Rising household incomes, strong governance, family balance sheets are getting better, government balance sheets are great, and it is getting a lot of attention regionally and globally,†he added.
PCA also manages several investment funds, through the Eastspring Investments, that has already reached 58.1 billion pounds.
These investment instruments can be accessed for example through Prulink Asia Pacific Equity Fund which in turn in part of the investment-linked products of Pru Life UK.
Prulink Asia Pacific Equity Fund is a US dollar-denominated fund, which is invested in Eastspring Investments Asia Pacific Equity Fund. Eastspring funds are investments in equity or equity-related securities in Asia Pacific companies.