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Philippine Prudential Posts 18% Income Growth

Posted August 5th, 2014 in Corporate News by Corporate Communication

Gross Premiums Reach P1.1-B in 2013

PHILIPPINE PRUDENTIAL Life Insurance Company, Inc. (Philippine Prudential), the industry leader in innovation and growth, reported that its Net Income grew by 18 percent, from P10.1 million in 2012 to P11.9 million in 2013.

In his report to stockholders, Philippine Prudential President and CEO Gregorio D. Mercado also said Gross Premium Income improved 10.3 percent to P1.136 billion in 2013 from P1.030 billion in 2012.

Total Assets was up 13 percent to P1.073 billion, while Total Investments went up to P509.2 million, or an increase of 9.4 percent.  Total Equity by end of 2013 was P420 million, 17 percent higher than that of the previous year.

To comply with current regulations on capitalization set by the Insurance Commission (IC), the Company has increased paid-up capital to P250 million in 2013, from P200 million in 2012. Mercado said the move will further ensure the company’s financial stability, security, sustainable viability and profitability.

According to Mercado, the Company’s net income grew despite operational and expansion costs as the company embarked on rationalizing its operations while maintaining its nationwide reach.

“Our presence nationwide remains a key strategy for us as we strive to reach every Filipino everywhere. However, we have to manage our costs by streamlining and optimizing our operations and resources, including the consolidation of some sales offices to other existing or new nearby offices with higher sales traffic and potential,” explained Mercado.  In 2013, the Company inaugurated sales offices in Baguio, Gateway Mall in Cubao, Binondo, Davao, and Naga.

Mercado also reported that part of the improvements is the acquisition of Premia, an award-winning insurance management software from leading Singapore-based developer 3i Infotech that would help increase productivity by boosting efficiency and simplifying daily tasks.  He added that the upgrade is under way and that many operational processes have already migrated to the new system.

Looking forward, Mercado said their outlook for 2014 continues to be very bright and positive, with the company having adjusted and adapted well to the demands of change and progress.

“We are very pleased to note that our earlier plans to provide medical insurance are fully under way and have generated promising results,” shared Mercado.

He explained that with the IC’s approval of the Company’s first wave of medical insurance products, their new Medical Distribution Channel has already generated sales activity and will continue to further boost our premium income and profits this year.  The Company launched last month its individual health insurance product, Optimum Health Plan.

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