The Market Monitor Minding the Nation's Business
By Riza Lozada
The country’s largest Filipino-owned life insurance company, The Insular Life Assurance Co. Ltd reported a robust 179 percent growth in consolidated net income to P4.9 billion in 2016 as a result of higher gains from sale of shares of stocks and properties, investment income and earnings of the company’s affiliates.
In a statement issued by the company after its annual members’ meeting, Insular Life CEO Nina Aguas said that 2016 was a record-breaking year in terms of revenues, net income, assets, and net worth.
The company’s consolidated revenues reached P25 billion, up by 25 percent. Consolidated total assets went up to P129 billion, 22 percent more than P106 billion a year ago.
Consolidated member’s equity or net worth amounted to P40.3 billion, up by 70 percent from P23.7 billion in 2015.
The increase in member’s equity can be attributed to the gains in the market value of the firm’s equity holdings and higher net income.
“2016 was our best year so far in terms of reinforcing our stability and financial strength. We are number two among 30 life insurance companies in terms of net income and net worth. And in terms of assets, we are number three,” Aguas added.
The insurer’s premium income, however, was slightly lower than the previous year.
“While we posted monthly increases in new business premium production for eight consecutive months and also increased its renewal premiums, we were not shielded from the volatile market conditions that caused a sharp drop in single premiums,” Aguas said.
Total premium income was slightly down by 3 percent to P12.3 billion, reflective of the industry decline of three percent.
“We were able to defend our number seven position based on total premium. Notwithstanding this, Insular Life’s equity funds that support our investment-linked insurance products were the best-performing funds in 2016 and have consistently outperformed the Philippine Stock Exchange Index, “Aguas added.
“Capping a successful year were recognitions we received from our regulator as well as international award-giving bodies. In 2016, Insular Life topped the ASEAN Corporate Governance Scorecard for the life insurance sector based on the assessment of the Insurance Commission in cooperation with the Institute for Corporate Directors,” he said.
In the first quarter of 2017, Insular Life and Union Bank of the Philippines received the approval of the Insurance Commission and the Bangko Sentral ng Pilipinas to engage in a bancassurance partnership.
The partnership allowed UnionBank and its wholly-owned subsidiary, City Savings Bank, to distribute and sell the insurance products of Insular Life to its over six million bank clients spread across Union Bank’s group network of over 300 branches and offices.
“We were in search of a bancassurance partner who shares our values. We have a long tradition of steadfast commitment to our policy holders, a respected Filipino company in a Philippine industry dominated by foreigners. UnionBank is also a proud Filipino company, recognized internationally, as among the best of class in global league tables. Together, we will continue to create value for the stakeholders of our two great companies and assert leadership in our respective industries”, Aguas added.
Omar T. Cruz, former president of a bancassurance joint venture, and former Philippine National Treasurer was appointed senior executive vice president and head of Insular Life’s bancassurance operations.