Insular Life posts P3.2B in 2012 net income, up 11%

Insular Life on Thursday said its net income rose 11 percent to P3.2 billion last year from P2.9 billion a year earlier, sustained by a steady stream of revenues and prudent resource management. Earnings have consistently risen each year, helping the insurer secure its foothold in the top three most profitable companies in the insurance industry, Insular Life chairman and CEO Vicente R. Ayllon said in an e-mailed statement Thursday. Ayllon said the healthy economy and the heightened interest of the market in its investment-linked products, plus a highly motivated sales force, helped the company achieve outstanding results in last year.  “In 2012, we launched a series of new products, including two structured variable unit-linked (VUL) products, and a peso-denominated VUL product with a limited offer," Ayllon said. "For those who are risk-averse, they prefer products whose benefits are guaranteed and therefore chose to buy the regular protection and savings products that will provide them and their family a definite amount for their future financial security,” he added. Consolidated revenues went up by 16 percent to P18 billion from P15.6 billion on higher insurance and operating revenues. Premium income from insurance contracts rose by 20 percent, and investment income, the primary driver of operating revenues, rose by 11 percent.  The insurer said P8.7 billion in policyholder benefits, claims and maturities were released to individual and group policyholders, up by 35 percent from a year earlier. Consolidated assets and members’ equity increased by 11 percent to P90 billion and P23 billion, respectively. The company’s assets and members’ equity are also among the highest in the industry, the insurer noted. “As the economy continues to improve, 2013 promises to be an even better year for Insular Life,” the CEO noted. “Our first quarter production in 2013 was 178 percent better than our production during the same period last year.” Ayllon noted. “If the execution of our plans and strategies are done well, we may see our production reach unprecedented levels in our company’s history by end of this year,” he added. — VS/BM, GMA News