Insurance company transformation
THE Bank South Pacific has transformed its life insurance arm from a health assistance firm to a multi-million dollar business with investments in the tourism and manufacturing sector.
While speaking at the BSP Life Fiji Human Resources Institute Convention in Nadi yesterday, BSP Life (Fiji) Ltd managing director Michael Nacola said the past 10 years had seen the company's growth in investments and customer base by more than 50 per cent.
“If you look at our new business, the total amount of sales for new business that we make in a year has doubled from $8 million in 2008 to $16m last year,” he said.
“It is unprecedented growth for any business.
“This year we are heading towards $20m which is going to be another major change again from last year. Our invoice in a year from a premium insurance stand point and which is essentially our revenue is $57m in 2008 and that is now almost $100m in 2019.
“Our investment portfolio, is $340m in 2008 and now its $720m.
“Outside of FNPF, BSP Life is the largest commercial institutional investor in Fiji. So for Sofitel, we are the major shareholders here. Rooster, we are the 100 per cent shareholders.
“It is quite phenomenal the growth that we've gone through and we are anticipating by the end of this year we will be moving closer to $750m which will be quite a record.
“In terms of benefit payments which is what we pay our customers every year when their policy matures or whether there is a medical evacuation that we need to do, $40m in 2008, over $60m last year.”
He said at the core of these changes, human capital had been an important aspect of the company’s growth.
He said investing in human capital was not only an important strategic move for the company but also a strategic investment.
“From a purely financial perspective, human capital is not just a strategic asset but also a strategic investment.
“So we do a lot of work in terms of hiring the best so when we do hire the best we keep investing in the best because when you make them better they become the best. They become a lot more strategic as well.”