The country’s largest Filipino-owned insurer Insular Life Assurance Company Ltd. reported a robust growth in business in 2013, but the pre-termination of some corporate lending accounts and lower dividends from investments reduced its net profits for the year.
The company’s consolidated net income dipped by 25 percent year-on-year to P2.4 billion due to the pre-termination of corporate loans of some of its borrowers, and lower dividends earned from the company’s strategic investments.
“Notwithstanding our impressive sales performance in 2013, our bottom line dropped by a quarter percent because some of our corporate borrowers opted to pay their corporate loans ahead of term maturity to refinance and take advantage of the prevailing low interest rates. Also, one of our major strategic investments opted to defer paying dividends to its shareholders in order to internally finance its business expansion plans,” Insular Life chair and chief executive officer Vicente Ayllon said.
At the company’s annual members’ meeting held recently at the corporate headquarters in Alabang Muntinlupa, Ayllon reported on the gains of the group led by parent company, Insular Life, which registered a 40-percent rise in new business premiums to reach P7.3 billion. It also posted a 20-percent growth in total premiums amounting to P11.3 billion.
Consolidated revenues in 2013 went up by 7 percent to P19.3 billion, with insurance revenues accounting for 65 percent of total revenues. The company also reported a 6-percent rise in consolidated assets to P94.8 billion. It disbursed P8.3 billion in policy benefits. Doris C. Dumlao