Insurance firm bares first infra investment in Philippines

CEBU, Philippines - Sun Life Philippines is entering its first infrastructure investment as the life insurer continually seeks for long-term assets, an official said.

“As an insurance company we’ve always been in search for long-term assets,” Sun Life Chief Investments Officer Michael Gerard Enriquez said in a press conference Wednesday.

The company has announced its first foray into power generation in Mindanao.

“What better way to invest our excess cash and help in nation building by looking at some of infrastructure projects,” Enriquez said.

Enriquez revealed the company is in the process of closing its first financing deal for a 600-megawatt coal-fired power plant in Mindanao, which is expected to be operational by the third quarter in 2018.

Enriquez declined to give further details yet.

On another matter, Sun Life President and CEO Rizalina Mantaring said the life insurer has set a target to insure five million individuals over the next five years from the current 1.2 million.

The target is part of its goal to boost the financial literacy among Filipinos as insurance penetration in the country currently stands at less than 5%. When micro-insurance is included, the penetration rate is at 20-30%.

“We want to reach to all segments of the population especially those who need it more,” Mantaring said in an interview.

The Canadian company announced that it achieved its five-year plan ending 2015 which includes reaching 5,000 financial advisors, P5 billion in annualized first year premiums, P5 billion in net income and P50 billion in assets under management.

Sun Life ended the first half of 2015 with total premium income of P16.3 billion, ranking first in the Philippines life insurance sector. (FREEMAN)