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Ayala life Assurance Inc. announced that its audited profits last
year surged, allowing it to contribute significantly to the earnings
of parent Bank of the Philippine Islands.
The company’s net income went up by 213.5
percent to P1.04 billion on year owing to the “growing
Bancassurance distribution channel, astute calls made on its
investment portfolio and the sale of the old Ayala Life building,”
Emilio de Quiros, Ayala Life president, said.
At end-December, the company’s total premium
grew by 13 percent to P1.75 billion with the first year premium
income rising by 47.8 percent on the back of increased volume of
business generated by its distribution channels—Agency Force,
Alternative Channels and Bancassurance. The group insurance business
also increased by 12 percent to P 434.5 million during the 12-month
period.
This year, its 75th anniversary, Ayala Life will
be “keen on opportunities” in terms of product, markets, and
distribution channels with improving productivity to bring down
costs, de Quiros said.
The company sees Bancassurance buoying its
profitability and continuing to be the biggest contributor to
revenues this year. Ayala Life is tapping the BPI’s deposit base
through its cross-selling initiatives. De Quiros also said that
another big contributor to the company’s top line is the
Alternative Distribution channel.
Ayala Life will soon launch its telemarketing,
direct mail and worksite marketing campaign to support its growth
strategy. It will also introduce the variable unit linked product to
complete its line of financial solutions.
The firm, a majority owned subsidiary of BPI,
offers a comprehensive range of insurance products and other related
financial services that include individual and group life insurance,
salary savings insurance, and pre-need products.
Its parent registered an increase in profits of
about 11 percent to P10 billion on year, reflecting a return on
equity of 15.1 percent and a return on assets of 1.7 percent, a
9-percent improvement in revenues and 8-percent expansion in assets.
BPI’s credit card loans were up by 15 percent
and billings grew by 25 percent. Its overall lending is at 13
percent, overriding the industry’s 5 percent. The bank’s asset
management business has registered 17-percent growth while its
remittance unit grew between 25 percent and 30 percent.
-- Likha C. Cuevas-Miel
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