Philamlife, AXA figure in tug-of-war
The Philippine Star
By Ted P. Torres
Tuesday, January 8, 2008
In the absence of a sound and industry-accepted standard for measuring the performance of individual life insurer, total premium income including single premiums as well as variable or unit linked (VUL) premiums remain the weighing scale. And that means two insurers are fighting tooth and nail for the top spot, based on initial end year results.
The Philippine American Life and General Insurance Co. (Philamlife) and AXA Philippines (AXA) are reportedly both in the vicinity of P16 billion in terms of total premium income.
Philamlife, the recognized industry leader this century, reported total premium income of P14.5 billion in 2006. AXA , which was catapulted to second best performer in 2006 registered premium income of P9 billion.
Industry sources, however, said that in overall terms, which includes capital, resources, investment income and policies in force, Philamlife will remain the leader.
It seems from initial reports that Sun Life of Canada (Philippines) Inc. will remain in third spot based on its nine month performance of P13 billion. Industry sources indicate that it could end the year with premium income of between P14.5 billion to P15 billion. The last quarter of the year is traditionally the strongest period of the industry.
It ended 2006 with premiums worth P8.7 billion.
All-Filipino Insular Life Assurance Co. (Insular Life) will likely remain in fourth overall with a total premium income in the vicinity of P7.8 billion. It was P6.3 billion in 2006.
Canadian insurer Manufacturers Life Assurance Co. Inc. (Manulife) and Pru Life Insurance Corp. of UK (PruLife) is also reportedly elbowing each other for the all-important fifth place among the country’s 26 life insurers.
Manulife is pressed to defend its fifth place in 2006 where it recorded total premium income of P3-billion. Reports indicate that premiums last year “may be better than P4 billion.”
But PruLife reportedly finished 2007 “closer to P5 billion” in total premium income. It was worth P2.7 billion in 2006.
Ayala Life Assurance Corp. (Ayala Life) will likely keep the seventh spot finishing 2007 with premiums worth over P2 billion, from P1.8 billion in 2006.
Generali Pilipinas Life Assurance Co. Inc. (Generali Pilipinas) is reportedly in the P2-billion level in premiums last year while Great Pacific Life Assurance Corp. (Grepalife) is said to have surpassed the P1.3 billion barrier.
Generali Pilipinas finished 2006 with P1.8 billion worth of premiums while Grepalife registered the same at P1 billion in the same period.
Industry players agree that 2007 was a good year for the economy as well as the industry. A growth rate of 17 to 20-percent for the life insurance is much anticipated. But 2008 is forecast to be a challenging year.
Total premium income in 2006 reached P55.38 billion, or roughly 18 percent from the P46.9 billion recorded in 2005.
The economy is expected to slow down from the fiery 6.7- to seven percent gross domestic product (GDP) forecast for 2007, to the 6.2- to 6.7 percent this year.
Likewise, more players are selling single premium policies and VULs. Insurers that have been in that market earlier may find it harder to seek new takers.
Recurring business from traditional life products remain the long-term solution to the profitable but short-term single premiums and VULs.
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