AXA premium dropped in Q1

MANILA, Philippines—Newly launched health insurance products boosted first year premiums (FYP) of AXA Philippines in the first quarter, even as the total premium income dropped by a double-digit rate during the same three-month period as a result of the market volatility experienced late last year.

AXA Philippines president and chief executive Rien Hermans told reporters last week that the three new health products—Health Exentials, Health Max and SME Employee Protexion—introduced last January, helped FYP rise by 19 percent to P508 million in the first quarter.

The new products contributed P56.3 million, or about a tenth of the first quarter FYP. Hermans said the health products could comprise 15 percent of FYP by yearend.

In the first quarter, renewal premiums rose by 34 percent to P925 million, but single premiums slowed by 43 percent to P2 billion.

Sales, or annualized premium equivalent (APE), also dipped by 11 percent to P829 million at end-March, dragging first quarter total premium income down by 26 percent to P3.5 billion.

The company said sales in 2014 could grow by up to 30 percent—slower than last year’s 31-percent expansion. Also, total premium income is expected to match that of 2012, which amounted to P12.3 billion.

In 2013, the company’s total premium income grew by 49 percent to P18.3 billion, while its APE jumped to P3.6 billion from P2.7 billion in 2012.—Ben O. de Vera