Sectoral leader Malayan Insurance Co. Inc. is the only non-life insurer that registered gross premiums of over P2 billion in 2000. Malayan grew 7.61 percent last year, from P1.865 billion in 1999.
The merger produced BPI/MS Insurance with a working capital of P300 million and 1,000 agents and brokers. Net underwriting income before expenses reached P365.8 million and net income was P142.9 million.
"That should put us in the second and third ranking among the country’s non-life insurance companies in terms of gross premiums," Ryuichi Ito, BPI/MS president said. Official figures for the 2001 performance are still unavailable.
This year’s target is P2 billion, which should protect their second or third overall position in the industry. However, net income target for the year is P140 million slightly lower than that previous year’s performance.
"We have to make a one-time expense that would definitely tell on our net earnings. The huge one-time expense will be for retirement payments as a direct result of the merger," the insurer said.
Ito said the bank is not overly concerned about unseating Malayan Insurance from top spot. Rather, they are more concerned with the profitability and efficiency of the non-life insurance firm, which offers among others motor, fire, and haul insurance.
"We have to be a well-balanced company concerned about service and profitability over size."
BPI/MS Insurance is the offspring of the FGU Insurance Corp., Mitsui Marine Insurance Co., and Mitsui Sumitomo Insurance Corp. FGU Insurance is one of the oldest non-life insurance companies in the Philippines and the first and only non-life insurance firm of the Ayala Group of Companies. Its life insurance counterpart is the Ayala Life Assurance Corp. (Ayala Life).
In 1999, FGU was acquired by BPI. On the other hand, Far East Bank and Trust Co. (FEBTC) formed an alliance resulting in FEB Mitsui Marine. When BPI eventually acquired FEBTC, it also acquired the rights to FEB Mitsui Marine.
Meanwhile, the Mitsui Insurance Co. of Japan entered into a merger with Sumitomo Marine Insurance Co. resulting in a new company called Mitsui Sumitomo Insurance Co.
The country’s non-life insurance industry gross premiums in 2000 reached P21.424 billion or 16.24 percent more than the P18.43 billion in 1999 despite the poor performance of the economy in the same period. The data covers 104 of the total 114 non-life insurance firms with licenses issued by the Insurance Commission (IC).
Aside from Malayan Insurance and BPI Sumitomo, the other leading non-life insurers are Prudential Guarantee and Assurance Inc., Pioneer Insurance and Surety Corp., Philam Insurance Co. Inc., Federal Phoenix Assurance Co. Inc., UCPB General Insurance Co. Inc., Standard Insurance Co. Inc., and Philippine Charter Insurance Corp. – Ted Torres