Manila - On the back of improving economic conditions in the country, Manulife Philippines achieved record sales for both insurance and wealth in 2012.(1) The company exceeded US$35 million (PhP 1.5 billion) in insurance sales(2) and US$154 million (PhP 6.5 billion) in wealth sales(3), representing growth of four per cent and 176 per cent over the prior year, respectively. Compared to the prior year, total premiums and deposits grew by 69 per cent; and total funds under management grew by 27 per cent to reach over US$1.5 billion (PhP 62.5 billion) as of December 31, 2012, for the first time ever.
“For the third consecutive year, Manulife Philippines achieved record insurance and wealth sales in 2012, reflecting Manulife’s ability to capitalize on the improving Filipino economy,” said Indren Naidoo, President and Chief Executive Officer, Manulife Philippines. “These encouraging results make us strive even harder to provide our customers with strong, reliable, trustworthy and forward-thinking financial solutions and services for their future.”
For the fourth quarter 2012, wealth sales increased by 191 per cent over the same quarter in 2011, driven by the strong performance of Manulife Philippines’ investment-linked funds and the market’s overwhelming reception to the new U.S. Dollar-denominated ASEAN Growth Fund (AGF). Total premiums and deposits increased by 92 per cent over the same quarter in 2011.
“The introduction of new products that address our clients’ specific life protection, investment and savings needs; aggressive recruitment of insurance advisers and agency leaders; and our increased footprint in provincial areas were factors in increasing the productivity of our agency, bancassurance and alternative distribution channels” Mr. Naidoo added.
By year end 2012, the company’s agency force saw a 22 per cent increase over year end 2011. Branch offices also opened in six new areas: Angeles City, Pampanga; Banawe Avenue, Quezon City, Metro Manila; Balanga City, Bataan; Batangas City; Tacloban City, Leyte; and Zamboanga City. To date, Manulife Philippines has 28 branch offices nationwide.
Substantial wealth sales in 2012 were fueled by the Philippines’ strong economy, increased consumer and business confidence and bright economic prospects that fuelled demand for its investment-linked products.
“Last year, Manulife Philippines refreshed the Affluence line(4) of investment-linked or variable life products with various options for policyholders to enjoy flexible protection coverage and take full advantage of the most favorable market conditions to assure optimal returns,” said Mr. Naidoo. “Yields of most of our funds attached to our investment-linked products were in the top quartile compared with other instruments in the market.”
About Manulife Philippines
The Manufacturers Life Insurance Company opened its doors for business in the Philippines in 1907. Since then, Manulife’s Philippine Branch and later The Manufacturers Life Insurance Co. (Phils.), Inc. (Manulife Philippines) has grown to become one of the leading life insurance companies in the country. Manulife Philippines is a wholly-owned domestic subsidiary of Manulife Financial Corporation.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife Financial and its subsidiaries were C$532 billion (US$535 billion) as at December 31, 2012. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
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(1) Sales, premiums and deposits, asset under management growth percentage are on a constant currency basis.
(2) Insurance sales, or annual premium equivalent (APE), refers to 100% of regular insurance sales plus 10% of single premium insurance sales.
(3) Wealth sales refers to 100% of regular premium sales plus 100% single premium sales.
(4) The Affluence line consists of Affluence Max Gold (single pay back end loaded wealth product); Affluence Gold (single pay front end loaded wealth product) and Affluence Builder Series (limited/regular pay insurance product), all launched in 2012.