AXA Philippines posts P13.9-B income in Q3

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AXA Philippines posted about P13.9 billion in income for the first three quarters of the year, driven mainly by the insurer’s strong bancassurance partnership.

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In a statement, AXA said that its income recorded a 59-percent increase in total premium income. The insurer’s total assets under management reached P51 billion, an increase of 25 percent.

AXA noted that the key driver to its growth was its strong bancas¬surance partnership with Metropolitan Bank and Trust Co., which accounts for 64 percent of its sales, as well as the aggressive recruitment efforts of its agency sales force, now totaling 1,850 financial advisors nationwide, up 19 percent from the same period last year.

Bancassurace is an arrangement in which a bank and an insurance company form a partnership, so the insurance company can sell its products to the bank’s client base.

“We have been growing our business consistently year-in and year-out the past five years,” said Rien Hermans, president and chief executive officer of AXA Philippines.

“Our total premium income in 2009 was less than P5 billion. Now we are on track to do 400 percent of that number by yearend,” he added.

Meanwhile, being one of the largest and fastest-growing life insurers in the country, AXA recently launched a second tranche of its latest investment-linked product, DiverXity, a single-pay variable life insurance product that provides investors exposure to both the Philippine and Chinese equity markets.

After the successful offering of the US Dollar DiverXity, AXA is now making it available in Philippine pesos.

The insurer noted that China and the Philippines are two bright spots in an otherwise volatile global market. China is shifting its economy from being export-driven to a more domestic-driven one in the next five years, while the Philippines now enjoys robust economic performance, on-going fiscal and debt consolidation, political stability, improved governance and lack of vulnerability to external shocks.

AXA said that DiverXity is tied to the Phoenix Fund, which is invested in a structured note issued by global investment-grade bank ING Bank N.V. that provides participation in the ING Phil-China Equity Index. It provides 80-percent principal protection on maturity, with a holding period of five or seven years.

One of the best
On the other hand, AXA was once again listed as Interbrand’s 100 Best Global Brands, and is the highest-ranking global insurance brand for the fifth consecutive year, valued at $7.096 billion, a 5-percent growth from last year. Interbrand is the world’s leading brand consul¬tancy, specializing in a vast array of brand services and activities, including brand analytics, brand engagement, brand strategy and brand valuation.

To generate the annual rankings, Interbrand calculates the value of a brand based on financial performance, and the role of the brand in the purchase of products and services.

Interbrand noted that AXA’s brand valuation and leading position reflect its improved customer experience, digital acumen, and corporate citizenship, most especially its brand engagement among employees and its employee social responsibility.

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