Balesin Island, Quezon: The country’s insurance sector has an abysmal penetration rate of only 1 percent but despite its somewhat sluggish growth, Pru Life Insurance Corp. UK more than doubled its annual premium equivalent (APE) or new business sales in just five years.
Antonio Manuel de Rosas, Pru Life UK president and chief executive officer, said the P1.6 billion APE the company posted in 2010 grew to P3.75 billion in 2014.
Prudential Plc, parent of Pru Like UK, defines APE as a measure of new business activity that is calculated as the sum of annualized regular premiums from new business plus 10 percent of single premiums on new business written during the period.
De Rosas, however, could not say if they had the biggest growth in the industry during that period because the other insurance companies have not disclosed their own growth rates.
He said that from 2013 to 2014, Pru Life also posted strong growth of 17 percent in total premiums collected, one of the top five increases recorded in 2014. The other 13 companies it studied posted an overall increase of 12 percent.
Pru Life said that in terms of APE, the 13 companies derived most of their total business from variable life policies and ordinary life policies, at P36.7 billion and P31.2 billion, respectively. De Rosas said Pru Life got its total business from variable life policies.
Although variable life was the main source of business for the other companies at 71 percent (P20.6 billion), Pru Life focused on variable life and Group life products in 2014, which accounted for 82 percent and 17 percent, respectively, of its new business for that year.