Philippine-American Life Insurance Co. posted a net income of P7.5 billion in 2015, making it the most profitable insurer last year, a top official of the Insurance Commission said over the weekend.
Insurance Commissioner Emmanuel Dooc said Philam Life, based on the unaudited quarterly figures submitted by companies to the agency, ranked first in the industry in terms of profits in 2015.
“There are some companies whose gross premium or net premium is not that high, and yet maybe because of better management and investment, they generate a much higher income,” Dooc said.
Philam Life was followed by Manufacturers Life Insurance Corp. (Manulife Philippines) with a profit of P4.256 billion.
PruLife Insurance Corp of UK ranked third with P1.82 billion, followed by Insular Life Assurance Corp. with P1.53 billion and Philippine Axa Life Insurance Corp. holding the fifth spot at P1.4 billion.
Sun Life of Canada topped the industry for the fifth consecutive year in 2015 with P32.81 billion in gross premiums acquired but landed on the eighth spot with a net income of P934.94 million.
Dooc said a good insurance company should also focus on making investments aside from underwriting profits they make.
Dooc earlier said the insurance regulator was expecting around P280 billion to P300 billion in gross premium for 2016.
He cited risks to the growth of the industry following the money laundering controversy in the country.
Dooc said the insurance industry would still book the gross premium target and survive the money laundering controversy involving Rizal Copmmercial Banking Corp.
“For the insurance industry, [money laundering] has an impact. For instance, money being remitted in, if they will encounter problems, and if they will be paying more transaction costs, they will be discouraged [to get insurance],” he said.
Remittances from migrant Filipino workers finance the construction of houses and insure them. The same is with moto vehicles, Dooc said.
Latest data showed the insurance industry registered a total premium income of P231.7 billion in 2015, making a banner year for the industry.
Dooc said data as of end December 2015 showed total premium of the life and non-life insurance industry rose 18.6 percent to P231.7 billion in 2015 from P195.40 billion in 2014.