Insular Life posts higher earnings
INSULAR LIFE Assurance Co. Ltd. Group’s bottom line nearly tripled in 2016 after it sold stocks and properties and booked higher investment earnings during the year.
In a statement e-mailed to reporters on Wednesday, the local life insurance company and its affiliates reported a 179% growth to P4.9 billion in its consolidated net income last year compared to the P1.77 billion posted in 2015.
“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,” Insular Life Chief Executive Officer Nina D. Aguas was quoted saying in a statement.
Insular Life’s consolidated revenues in 2016 stood at P25 billion, rising 25% from the P19.93 billion recorded in the previous year, while its consolidated net assets also expanded 22% to P129 billion last year from the P106.15 billion booked in 2015.
Similarly, its consolidated member’s equity in 2016 reached P40.3 billion, soaring by 70% from the P23.7 billion booked in the prior year on the back of “gains in the market value of equity holdings and higher net income.”
“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,” Ms. Aguas said.
The life insurer said its total premium income at end- 2016 went down by 3% year-on-year to P12.3 billion.
“We were able to defend our number seven position based on total premium. Notwithstanding this, Insular Life’s equity funds that support our investmentlinked insurance products were the best- performing funds in 2016 and have consistently outperformed the Philippine Stock Exchange index,” Ms. Aguas added.
Meanwhile, Insular Life’s chief executive told reporters separately that for the life insurance company alone, its income grew 165% last year on the back of premiums and income produced from its investment and property portfolios.
Asked if the firm plans to surpass this 165% income growth for this year, Ms. Aguas said: “I can’t say. We do our best, because it’s hard to put a number out there and deliver, but I always want to over-deliver.”
Asked on the company’s first quarter financial performance, Ms. Aguas said, “It’s been good... We’re quite happy with it.”
Meanwhile, she also noted that Insular Life’s bancassurance partnership with Union Bank of the Philippines ( UnionBank) “will be successful,” with the growth contribution to the insurer expected to “become significant,” with a 40:60 ratio contribution to its gross premium.
“For example, 60% by agency business model and about 30 to 40% delivered by the bancassurance this year, starting this year,” Ms. Aguas said. “But on the bottom line, I think it should translate also to as significant as what we have done in 2016.” •