THE life insurance industry is on track to sustain this year its strong growth last year, an industry leader yesterday said.
First-year premiums posted a 60 percent to 70 percent year-on-year growth in the first half of the year, Jose Ongsingco, president of the Philippine Life Insurance Association (PLIA), said.
“For total premium sales, first-half growth should be lower compared with that of first-year premiums as first-year premiums are the drivers for the period,” said Ongsingco, who is also president of Insular Life.
“In absolute amount, renewals are bigger but in terms of growth, first-year premiums are higher,” Ongsingco added.
He said the figures are still unofficial although provided by industry members themselves.
Ongsingco is confident the industry can repeat last year’s double-digit growths in all measures of performance.
In 2010, the insurance industry grew 23 percent in total premiums and around 60 percent for first-year premiums.
Onsingco said the industry’s confidence is based on the improving outlook of the economy. He also took note of the positive impact of the weakening global economy.
“A weakening global economy would lead to higher foreign direct investments in the Philippines, including in equity and bond markets,” he said.
The top five insurance companies in 2010 in terms of premium income performance were Philam Life, P11.255 billion, for 16 percent of the total; Sun Life, P10.63 billion, 15 percent; Philippine AXA Life, P8.36 billion, 11.8 percent; Pru Life UK, P7.36 billion, 10.4 percent; and Insular Life, P7.13 billion, 10.1 percent.
In terms of first-year premiums, the top five were Philippine AXA, P6.64 billion, 19.4 percent of total; Pru Life UK, P5.23 billion, 15.3 percent; BPI-Philam, P4.56 billion, 13.3 percent; Insular Life, P3.27 billion, 9.5 percent; and Philam Life, P2.7 billion, 7.8 percent.
[Source - Business Insight]
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