Insular Life’s profit falls to in 2015 due to market volatility

Insular Life Assurance Co. reported yesterday that the company’s net income decline last year due to market volatility.

In a statement, Insular Life said that its consolidated net income dropped 40 percent last year to 11.77 billion from 12.95 billion in the previous year.

“The decline in net income was primarily due to reduced profit from the sale of property and equities, and lower equity in net earnings of associates,” Insular Life said.

But despite the decline in profit, Insular Life landed at number four in the industry ranking based on net income.

Meanwhile, Insular Life said that its consolidated revenues grew six percent to 119.93 billion last year from 113.59 billion in the previous year on the back of higher sales of single pay and multiple-pay variable unit-linked products.

In 2015, Insular Life also said that its consolidated assets rose five percent to 1106.15 billion from 1101.35 billion in 2014. Net worth also expanded by four percent, to 123.72 billion from 122.85 billion the previous year.

“We are very happy to inform our policy holders that Insular Life consistently ranks high in four important performance factors,” Mona Lisa B. de la Cruz, Insular Life president and chief operating officer said.

“We are number two in net worth, number three in assets, number four in net income and number seven in premium income,” she added.

Moving forward, De la Cruz said Insular Life will continue its multipronged digital strategy that involves engagement over a broad front of users and strengthening its digital platform and its properties.

“We are seeing a spike in engagement of online users, particularly the millennial generation who are increasingly interested in our products,” De la Cruz added.

Nina D. Aguas, Insular Life chief executive added “We cannot ignore the fact that with ASEAN integration and shifts within the insurance industry, our world is changing and we need to have an organization that is responsive and can operate and compete within the redefined playing field.

“We will consider the proper organization structure, work at leveraging our partnerships and alliances, reinvent ourselves within the digital and financial technology world, and build and strengthen the capabilities of our people. Our policyholders must see a differentiated and bespoke customer experience,” she said.