Insular Life’s 2010 net profit grows by 23% to P2.6B

MANILA, Philippines—Century-old Philippine insurance giant Insular Life grew its consolidated net profit in 2010 by 23 percent to a record-high P2.6 billion on higher revenues from insurance and investment operations.

The country’s third-largest insurance company and the largest among Filipino-owned peers reported that total revenues surged by 21 percent to P15.2 billion in 2010, its 100th year of operations.

Bulk of the revenues came from net insurance income and investment income, which amounted to P8.4 billion and P4.97 billion, respectively. This was reported by Insular Life chairman and CEO Vicente Ayllon to the policy-holders present during the company’s annual meeting held recently in Filinvest Corporate City, Alabang, Muntinlupa.

Total policy-holder benefits and operating expenses amounted to P12.3 billion, the bulk of which represented benefits paid to policyholders. Total life insurance business-in-force reached P200 billion. Consolidated assets rose 14 percent to P72 billion.

“The sturdy performance of the domestic economy, the global market recovery, and being fueled by a highly motivated employee and sales force made it possible for the company to post its most remarkable performance in its 100-year history. Very few Filipino companies have reached this milestone and thus, it has become a source of pride among our people to be part of the company as it marks its centennial. Everyone rallied behind the company’s marking its 100th year,” Ayllon said.

The Insular Life chief also reported that new business premiums from life insurance went up 64 percent to P3.3 billion from a year ago.

Sales from variable unit linked (VUL) products, or the life insurance products linked to managed funds, grew by more than thrice the previous year due to the additional contribution brought in by new products. To date the company has six VUL funds namely Peso Equity Fund, Peso Fixed Income Fund, Peso Balanced Fund, Dollar Fixed Income Fund, Greater China Fund and Strategic Fund, which have a combined value of P4.13 billion.

Year-end returns on these funds showed significant increases with Equity Funds leading at 66.35 percent.

First-year premiums generated from regular products also grew by 31 percent, suggesting sustained demand for protection and savings products. Total premiums posted by parent company amounted to P7.3 billion, up by 16 percent from a year ago.

For 2011, Insular Life said it would go full swing on its “life stage marketing” approach whereby the company’s financial advisers have been trained to address insurance needs based on an individual’s life stage situation. At the same time, the company’s website now includes a microsite to give visitors a snapshot of their financial needs at every life stage and advice on the right products to meet those needs.

The website also contains Insular’s Effective Access to Gateway Link Electronic system, or i-EAGLE. This is the company’s web-based customer portal, which includes an online payment facility that gives subscribers the option to pay through e-BAYAD. This allows customers to do one-time payment transaction online by using their credit cards. Policyholders may opt to use the auto-charging option if they want to avail themselves of the automatic charging of future premiums to their credit card as they fall due.

Insular Life is the parent company of subsidiaries Insular Health Care Inc., Insular Investment and Trust Corporation, Home Credit Mutual Loan Building & Loan Association, and affiliate Mapfre Insular Insurance Corp.

Insular Health Care posted P306 million in revenues while Mapfre Insular reported gross premiums of P1.7 billion and net income of P207 million last year.