Insular Life posts 29% hike in new business

MANILA, Philippines - Largest Filipino life insurer Insular Life posted impressive growth in new business premiums for the first  nine months of the year, driven by strong variable unit-linked (VUL ) sales supplemented by steady traditional policies.

Insular Life’s new business reached P3.44 billion as of September 2012 up by 29 percent over the same period last year.

“The first nine months premium were boosted by several innovative investment-linked variable insurance products offered during this period. We took advantage of the prevailing favorable market conditions to offer a US dollar variant of our highly successful 2011 product, the variable returns asset, as well as launched two new limited offer VUL products – the I-Dollar Pay 7 and the I-Peso Fortune.  These products proved to be best sellers as they gave the individual investors access to better yielding investment instruments that are traditionally available only to large funds and corporate investors.  These opportunities plus the strong support of our sales team, pushed our performance further up,” explained Insular Life chairman and chief executive officer Vicente R. Ayllon.

Despite declining interest rates, the company’s investment income grew by seven percent to P4.8 billion from P4.5 billion in 2011.  Interest income was complemented by strong growth in cash dividends, rental income and capital gains.

The company invested P3.8 billion in private sector deals consisting of term loans, preferred shares and bond issuances of several prime corporations. Investment in government securities increased by P1.4 billion. The company’s liquidity level stood at P3.4 billion, consisting of bank placements and short-term government securities.

“We are projecting another banner year for Insular Life.  Our confidence level stems from the fact that we have a healthy economic outlook for the Philippines, especially after all the major international credit rating agencies upgraded the country’s rating to just one notch away from investment grade, coupled with our internal strengths of having an excellent product portfolio,  exceptional customer service, and motivated agency force,”  Ayllon disclosed.