President upbeat on Company’s prospects
by Roulee Jane F. Calayag

A man who has seen massive changes that more than meet the eye, Pru Life UK’s President and CEO Peter Karl Grimes is unflappable.

Without a doubt, the 50-year-old chief executive does not mince words. Determined to break the mold of complacency, Mr. Grimes has been actively pursuing changes that promise to redefine the Company’s position in the continuously evolving Philippine life insurance industry in this definitive moment in history. While he summons the over 2,000-agency force and the growing number of employees of Pru Life UK to stand up to the challenges that some may think can send everyone scurrying round the bend, Mr. Grimes has proven to be a fearless leader who makes no big rush but is always on his toes.

Despite his tight schedule, Mr. Grimes granted PruTimes an opportunity to get up close and personal with him in an interview on December 1.

A British national by birth, the President shared that he considers himself also as an “Asian man who has spent 50% of my life in Asia”.

After finishing his studies and working for some time in the United Kingdom, Mr. Grimes moved to Asia where he took on important roles in various industries such as telecommunications, information technology, general management, and then, insurance. Phew! You think the list is astounding? Wait till you hear this. The man also dabbled in journalism. “But I learned early on that I cannot make enough money from journalism,” he said with a tinge of nostalgia, reminiscing how his passion to write was at its peak when he was younger.

“I had worked in various industries for over 20 years but I’d say that I am also an insurance man, having spent most of my working life in insurance. I would be celebrating my 10th anniversary with Prudential in 2010,” the President said, beaming with pride.

The President’s deep sense of commitment to Prudential can be seen in his exceptional track record in the past decade. Mr. Grimes, in his former role as Regional Partnerships Distribution Director, spearheaded thepartnership distribution efforts in Prudential Corporation Asia (PCA)—developing partnerships with less than 80 banks in Asia, including three in the Philippines. His efforts, particularly his outstanding work that clinched the deal with Standard Chartered Bank, fuelled the quantum growth of Prudential’s regional distribution in the past few years.

On his ninth year, he was appointed to man the Philippine operations of Prudential. His appointment was made even more meaningful when Prudential’s top executives such as former Prudential Group CEO Mark Tucker, his successor Tidjane Thiam, and PCA Group Chief Executive Barry Stowe flew in to Manila to express their support. But more than all these great achievements that trumpeted his dedication to widen Prudential’s reach—geographically and market-wise, he humbly described himself as a “family man”. Married to a Filipina and the father of four bright and bubbly children, Mr. Grimes puts high premium to families—considering that these form the core strength of every society.

A hardworking executive, Mr. Grimes puts out rigid hours of work everyday—traveling to different places, meeting people, and going through other pressing concerns. It’s this image that has often stayed in the minds of Pru Life UK people. But in rare instances, the President has shown that his uncompromising love for his family is above everything. During the Company’s Sportsfest, he proudly took his two boys with him to witness the opening ceremony. His familial interest is also evident in the way he dealt with thousands of schoolchildren in the typhoon-ravaged town of Tanay in Rizal. After traveling for hours with the “blinding turns” in the mountainous area in Rizal last December 8, the other and often hidden side of Mr. Grimes was seen. Without regard for the searing rays of the sun, he granted the request of children for a photo session. Huddling the excited and sweating children after distributing school supplies as part of the Company’s corporate social responsibility, Mr. Grimes openly reached out to the young as he made small talk with them during that session, and proceeded to a Filipino lunch prepared by the teachers at one of the classrooms at the Sampaloc Elementary School—quite simply touching acts of compassion by a foreigner who considers himself like a Filipino.

An epitome of a man passionate in pushing the limits to see a better Asia, and particularly, a promising Philippines, Mr. Grimes proves to be a rabid evangelist for economic development in the region. Sharing priceless expert views on the region, he said: “In the ‘80s when I moved to Asia, I found it as a promising place. I strongly felt that in the region, there are many opportunities and that anyone can become successful if he works hard. The countries are geographically located and individuals can be successful because most of the region’s industries are growth engines.”

His prospects are equally brighter for the country. “The Philippines is very interesting in the past few years. There are lots of signs that it is starting to move forward and more significantly than it was in the past. I haven’t seen such massive spurts of growth. The market corrections are also good. The country has not been hit that hard in the Asian financial crisis. Look around. There are green shoots of optimism that show that the Philippines is progressing. There are more tourists as well. The places that I and Max (Joaquin, Jr.— Pru Life UK’s General Manager and Chief Distribution Officer) visit show that there are more brochures to attract tourists and indeed, tourists are coming to see the country. The guidebooks show tourists the places to see in the Philippines,” Mr. Grimes said.

Overall, he paints a promising prospect for the Company as a result of the tourism opportunities and other developments that bode well for the Philippines. “There are new luxury hotels in Metro Manila which are a sign of confidence that the economy is moving in the right direction. The Filipinos are coming back to work here again. The economy is also experiencing decent growth—helped by the resiliency of our banks and there is the coming election, which we hope will be peaceful,” he said.

The glowing prospect spills over to Pru Life UK, an emerging tiger that is priming for more sustainable growth in the local life insurance sector.

“I came back to the Philippines because fundamentally, I believe it has a massive potential to grow. On every metric, it is
an underperformer to its Asian peers. The penetration rate for insurance is low and the number of agents in the industry is low compared to those of other countries. In the case of Pru Life UK, it has Prudential’s track record of success over the long-term, and that it is not far behind.

“My perspective on Pru Life UK? I have great confidence that it will continue to build on its core values and through the new management and refreshed enthusiasm, it will be either number one or two in the industry, in the next two or three years,” Mr. Grimes said, urging members of the Pru Life UK family to “continue to work as hard as you can—which is important in a difficult situation—for us to make a critical strong finish.”

He added that “everyone has a role to play and that the best possible results will make for a more successful Christmas celebration, that will put bigger smiles on our faces, and provide for a stronger and better foundation for 2010— the momentum and the confidence” that will shore up everyone’s morale.

The President has marked his first 180 days as the big boss of Pru Life UK. Asked to assess his performance during the period, he said: “I’d say up and down generally but we made a lot of progress. My unbiased view is that we are in better shape now than in the first quarter and better also than the second quarter, which was at a low point. Look, the past 12 to 15 months were tough and were even tougher for our competitors but in our perspective, the key objectives, by and large, were achieved in my 90 days.”

During his honeymoon period with Pru Life UK, Mr. Grimes set the stage for a bold and evolving Pru Life UK with developments on different areas.

“In terms of people, we have completed our senior management. We are reshaping and restructuring. We have also reintroduced traditional products to ensure a better balance for our product range. It will take time for the traditional products to gain ground but it will provide our sales persons with a stronger array of products. We know that one size does not fit all. Now we have products for the different economic markets.

“We have addressed the nuts and bolts in management, recruitment and activity management and had completely reworked these. We have moved significantly, such as in terms of recruitment materials, as well as the recruitment drive and activity management. There’s a huge progress in refreshing and energizing the agency force. The systems for our back office are a work in progress but on schedule. As for our sales, it’s up and down. Overall, we have a good platform for 2010 which will be the first year of the new management team,” Mr. Grimes said.

With these developments and all the other key goals clearly set, there is no doubt that every day will be Christmas at Pru Life UK.

“Looking forward to 2010, we are optimistic with the prospects especially with the improving market conditions. The next 12 to 24 months will be exciting,” the President assured.

Now, isn’t that a wonderful Christmas present?