Pru Life UK new business sales up 16 percent at end-2013 on the back of ongoing growth in its agency force

MANILA/ 27 JUNE 2014 Consistent with its thrust to help ensure clients’ financial security over the long-term, Pru Life UK, with its large network of agents, increased sales of products geared towards protection and savings in 2013.

As of end-December 2013, British life insurer Pru Life UK’s new business sales went up 16 percent year-on-year with PhP3.515 billion compared to PhP3.035 billion in 2012. The new business sales, or Annual Premium Equivalent, is the sum of 100 percent of annualized premium income (API) and 10 percent of single premium income. API is the total first year premium income of new policies issued within a calendar year.

Agency new business sales accounted for 71.49 percent of total new business sales, which stood at PhP2.513 billion in 2013. The remaining PhP1.002 billion was generated from bancassurance and Credit Group Life (CGL) transactions.

“In 2013, regular premium (RP) and limited pay (LP) policies accounted for 63.47 percent of our total new business sales. We shifted our focus to RP/LP in line with our policyholders’ need for life insurance policies with a savings component. Through our RP and LP policies, our customers can build their savings through regular ‘top ups’ – on top of regular premiums – that can be invested in their chosen funds,” said Pru Life UK President and Chief Executive Officer Antonio de Rosas. Pru Life UK’s bestseller regular premium and limited pay products include PruLink Assurance Account Plus and PruLink Exact Protector.

Total Gross Premium Income likewise rose in 2013, with Pru Life UK recording PhP18.508 billion, growing 15 percent from PhP16.083 billion year-on-year. Total Gross Premium Income is the premium income earned (first year, single and renewal years), gross of reinsurance, for the period.

Growing agency force

Pru Life UK has considerably strengthened its agency force, closing the year with 8,860 agents.

“We are building and training the largest professional agency sales force in the Philippine life insurance industry, servicing the financial planning needs of our clients. We continue to broaden our innovative range of protection and savings options with new products and funds to satisfy an increasingly sophisticated insurance buying public,” said Mr. de Rosas.

Global funds, expanded protection portfolio

Further strengthening its protection portfolio, the Company introduced this year the Pru Life Care Series, which are yearly renewable term products that provide cash benefits to help cover the cost of treatment of life-threatening diseases or critical illnesses.

“Our goal is to effectively respond to the Filipino’s specific financial planning needs when a family member or a breadwinner becomes critically ill. Medical expenses can drain our life savings. The Pru Life Care Series will help ease the financial strain when our loved ones undergo medical treatment,” said Pru Life UK Senior Vice President and Chief Marketing Officer Belle Tiongco.

On 1 April this year, Pru Life UK likewise launched the US dollar-denominated PruLink Global Emerging Markets Dynamic Fund (PruLink GEM Dynamic Fund), recognizing the growth potential of global emerging markets and opening opportunities for policyholders to diversify their unit-linked investments. In only almost three months since its launch, the PruLink GEM Dynamic Fund is delivering positive performance, posting a 5.08 percent net return as of 23 June. The variable fund registered its highest net return to date on 13 June with 6.01 percent.

Largest asset manager in Asia

Pru Life UK’s PruLink fund portfolio is managed by sister company Eastspring Investments (Singapore) Limited, part of Eastspring Investments, the asset management arm of British financial services company Prudential plc in Asia. Eastspring Singapore has been managing the Pru Life UK’s underlying funds since it pioneered unit-linked or investment-linked life insurance in 2002.

In 2013, Eastspring Investments was ranked as the largest retail asset manager in Asia Asset Management’s annual survey of retail fund managers in Asia[1] for the second straight year. Eastspring was likewise recognized as the Best Asset Management Company of the Year in Southeast Asia by The Asset’s Triple A Investor and Fund Management Awards 2013.

“Our fund manager’s strong performance is proof of their expertise and intuitive understanding of the Asian investment landscape.” said Mr. de Rosas. “The stability and sustainable growth of Eastspring and our parent company Prudential plc contribute to the increasing strength of Pru Life UK and the PruLink product portfolio.”

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About Pru Life UK

Established in 1996, Pru Life UK is a subsidiary of British financial services giant Prudential plc. Pru Life UK is the pioneer and current market leader of unit-linked or investment-linked life insurance products, and 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.

Prudential plc is a United Kingdom-registered company. Its regional headquarters, Prudential Corporation Asia, is based in Hong Kong.

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).

 


[1] This annual survey ranks participating fund managers in Asia (ex-Japan, Australia and New Zealand) based on assets sourced in the region, as of 30 June 2013.
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