ALLIANZ PNB Life Insurance, Inc. reported robust growth in the first half of the year on the back of rising incomes.
In a statement sent to reporters on Wednesday, the joint venture between German insurer Allianz SE and Tan-owned Philippine National Bank (PNB) posted a P4.63-billion premium income in the first semester, up 162% from only P1.77 billion tallied a year ago.
Meanwhile, Allianz PNB Life’s gross written premiums grew by 161% year-on-year in the January-June period, outpacing industry growth.
Data from the Insurance Commission (IC) showed total premiums of the life insurance industry grew 28% at P116.14 billion in the first half from P90.79 billion in the same period last year.
“We are proud of the company’s achievement since we are able to reach out to more Filipino families in providing them insurance protection and investment opportunities,” Allianz PNB Life Chief Finance Officer Efren C. Caringal, Jr. was quoted as saying in the statement.
He added that its bancassurance distribution partners PNB and HSBC gave a “solid contribution” to the growth.
Olaf Kliesow, Allianz PNB Life Chief Executive Officer, attributed the growth to the rising per capita income of Filipinos.
This was supported by the country’s strong economy, 6% in the second quarter, as well as the “sound macroeconomic fundamentals” that will support the insurance industry’s growth.
The insurer said yesterday that it has been expanding its business regionally to address the growing need for insurance and financial products in various provinces.
In a previous interview, Mr. Caringal said Allianz PNB Life is “aspiring” to launch microinsurance products in the country to address the issue of protection gap or the amount of insurance needed by Filipinos.
“Allianz is very big in microinsurance. I think we’re one of the biggest [globally], particularly in markets like Indonesia and India. Our aspiration is to be able to do that also in the Philippines,” Mr. Caringal told BusinessWorld last month.
Currently, the insurer has on-boarded more than 700 agents, which will be expanded to a 3,000-strong agent network by 2020.
Allianz PNB Life is also aiming to expand its customer base in the next three years, providing the insurance needs of around 100,000 by 2020 from the current 60,000.
“More needs to be done in the area of expanding financial inclusion since majority of Philippines remain either uninsured or under-insured,” Mr. Caringal added in the statement.
The German insurance firm completed the acquisition of 51% of PNB Life Insurance, Inc., the life insurance arm of PNB, in June 2016.
IC data showed Allianz PNB Life was the twelfth-largest life insurer in terms of premium income as of end-2017. — Karl Angelo N. Vidal