Pru Life UK’s new business sales surpassed PhP3 billion and total premiums increased 55 per cent in 2012
Pru Life UK’s new business sales surpassed PhP3 billion
and total premiums increased 55 per cent in 2012
The Philippines is one of Prudential plc’s fastest-growing markets in Asia
APRIL 3, 2013/ MANILA Pru Life UK, a [wholly-owned] subsidiary of UK-based Prudential plc and the only British life insurer operating in the Philippines, announced today that its new business sales1 for the year ending 31 December 2012 were PhP3.035 billion, up 46 per cent (2011: PhP2.081 billion).
Pru Life UK’s total gross premium income2 was PhP16.1 billion, up 55 per cent on the prior year (2011: PhP10.4 billion). The [strong] financial performance in 2012 was achieved because of Pru Life UK’s productive and expanding sales force and diversified product portfolio.
Commenting on the results, Pru Life UK President and CEO Antonio De Rosas, said:
“Our continued recruitment and training of agents along with our product innovation has contributed to the strong business growth we have seen in 2012. Growing our strong multi-channel distribution platform has remained our top priority as we continue to reach out to more Filipinos to help serve their savings and financial protection needs. During the year, we have forged new partnerships with financial institutions such as Standard Chartered Bank and Chinabank Insurance Brokers adding to our successful existing tie-ups which include HSBC Insurance Brokers (Philippines) Inc. and Citicorp Financial Services, Inc. Our partnership with Standard Chartered Bank resulted in the establishment of a new general agent Assurance Solutions Insurance Agency (ASIA), which exclusively distributes Pru Life UK products to Standard Chartered Bank’s clients. We have also expanded our product portfolio to help cater to our customers’ changing needs.”
In 2012, Pru Life UK changed the [agent] recruitment landscape in the Philippines with its innovative “Build Your Business” (BYB) program. BYB is a platform for aspiring financial advisers to help them gain a working understanding of how to establish a business in the life insurance industry using Pru Life UK’s innovative products and training as well as mentoring from industry experts and attractive incentive programs.
During the year, Pru Life UK also launched the PruLink Asian Local Bond Fund (PALBF), a feeder fund which invests offshore, via the Eastspring Investments-Asian Local Bond Fund. It is the first fund of its kind in the Philippines. With the PALBF, Pru Life UK’s unit-linked dollar policyholders can now invest a portion of their premiums into a fund with a diversified Asian portfolio. The Eastspring Investments-Asian Local Bond Fund is managed by Eastspring Investments Singapore Limited, which is part of Eastspring Investments, the Asia asset management arm of Prudential plc. Eastspring Investments is one of Asia's largest asset managers, with operations in 12 markets (including a US sales office) and about US$94.4billion (£58.1 billion) in assets under management (at December 31, 2012). It recently topped an annual ranking of retail fund managers in Asia by size.
“The right business, at the right time, in the right countries”
At the announcement of Prudential plc’s 2012 full year results, Group Chief Executive, Tidjane Thiam, said: “Our business in Asia has continued to demonstrate the benefits of both its scale and its diversification, by growing strongly on each of our three key performance metrics: new business profit, IFRS operating profit and cash. This performance has been largely driven by our ‘sweet-spot’ markets including Indonesia, Singapore, Malaysia, the Philippines and Thailand.”
Barry Stowe, Chief Executive, Prudential Corporation Asia, said: “Prudential is in the right business, at the right time, in the right countries. For both life insurance and asset management, Asia offers a most promising future, with a steadily growing middle-class, and Asian economies on a positive growth trajectory in the medium- to long-term.”
In 2012 in Asia, Prudential plc reported new business profit up 18 per cent to £1,266 million, IFRS operating profit3 grew 26 per cent to £988 million and Asia’s net cash remittance of £341 million, was up 66 per cent, and for the first time Asia was the largest contributor of cash to the Group.
Doing well by doing good
During the year, Pru Life UK and Prudential Corporation Asia, have made significant contributions to the communities they serve through corporate social responsibility programs. These include the growing “Cha-Ching Financial Literacy for Youth” program.
According to Mr. Stowe: “Our engagement with the communities in which we do business is also stronger than ever. Our flagship financial literacy program, Cha-Ching, continued to expand, touching the lives of more children across Asia. We have provided greater levels of assistance to more people in more markets than ever before. Our ambition to build on this community work is equal to our ambition to build our business.”
Cha-Ching is a multi-platform program focused on four basic money management pillars: earning, saving, spending and donating. Cha-Ching teaches ‘money smart’ habits to children via a ‘multi touch-point’ syllabus with musical ‘edutainment’ videos featuring a band of six characters as the primary tool to attract and sustain the attention of children, promoting easier recall and comprehension of concepts. Pru Life UK has partnered with the Department of Education to integrate Cha-Ching into two pilot public schools and established partnerships with eight private educational institutions. So far it has taught ‘money smarts’ to over 10,000 children, trained nearly 200 teachers in public and private schools, and has reached out to over 14,000 parents and adults.
ABOUT PRU LIFE UK
Established in 1996, Pru Life UK is a [wholly-owned] subsidiary of UK-based Prudential plc, one of the world’s leading financial services groups. Pru Life UK is the pioneer and current market leader of unit-linked or investment-linked life insurance products in the Philippines. It is one of the first life insurance companies approved to market US dollar-denominated unit-linked policies in the country. Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans.
Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. (a US-registered company), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all Philippine-registered companies).
For more information: www.prulifeuk.com.ph
ABOUT PRUDENTIAL CORPORATION ASIA
Prudential Corporation Asia is a business unit of Prudential plc (United Kingdom)*, comprising its life insurance operations in Asia, and its asset management business, Eastspring Investments. It is headquartered in Hong Kong.
Prudential is a leading life insurer that spans 13 markets in Asia, covering Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, The Philippines, Singapore, Taiwan, Thailand and Vietnam. Prudential has a robust multi-channel distribution platform providing a comprehensive range of savings, investment and protection products to meet the diverse needs of Asian consumers.
Eastspring Investments manages investments across Asia on behalf of a wide range of retail and institutional investors, with about half of its assets sourced from life and pension products sold by Prudential plc. It is one of the region’s largest asset managers with operations in 12 markets (including a US sales office). It has £58.1 billion (about US$94b) in assets under management (as at 31 December 2012), managing funds across a wide range of asset classes including equities and fixed income.
*Prudential plc is incorporated in England and Wales, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has £405 billion in assets under management (as at 31 December 2012). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. whose principal place of business is in the United States of America.
Prudential plc is listed on the stock exchanges of London (PRU.L), Hong Kong (2378.HK), Singapore (K6S.SG) and New York (PUK.N)
1 New business sales are measured on an Annual Premium Equivalent (APE) basis. APE is calculated as the sum of 100 per cent of annualized premium income (API) and 10 per cent of single premium income. API is the total first year premium income of new policies issued within a calendar year.
2 Total Gross Premium Income is the premium income earned (first year, single and renewal years), gross of reinsurance, for the period.
3 Issued by the International Accounting Standards Boards, the IFRS are the set of international accounting standards stating how particular types of transactions and other events should be accounted and reported in financial statements. The IFRS basis results form the basis of the Group's statutory financial results.
IFRS operation profits are stated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions and the shareholders' share of actuarial and other gains and losses on defined benefit pension schemes.