According to Luis C. La Ó, MAPFRE Asian chairman and chief executive officer, the decision to transfer to New York Life was made in the interests of the company’s policyholders.
"While we had better purchase offers from other companies, we saw that our customers would benefit best from the stability and financial strength provided by New York Life. MAPFRE had chosen to stop selling life insurance in the Philippines in 2001 due to the tightness of the market. However, the insurer has refrained from turning its portfolio over to another company over concerns regarding stability and continued growth.
New York Life Insurance, a new entrant in the Philippine life insurance market, upped its Philippine investment to P900 million recently, infusing another P350 million mostly through government bonds.
The New York-based life insurer has been making strong sales amidst pullouts by its competitors. It garnered over P100 million in sales in 2002, its first full year, surpassing historical first year figures posted by key competitors.
In 2003, the company is looking at a target of P200 million in sales, an almost 100 percent increase from year before figures.
As of January 31st, all of MAPFRE’s policies have been transferred to New York Life.
"All obligations with regard to the coverage of policyholders will now be assumed by New York Life. All premiums and obligations resulting from your coverage will also be paid directly to New York Life," George May, New York Life president and chief executive officer, said.
New York Life will be opening a full business office at the Mapfre Asian Corporate Center in Alabang as part of the turnover deal in the first quarter of this year. The office, which is to be opened at the first quarter of 2003, will allow MAPFRE’s former policyholders to transact business in a familiar setting. – TPT