Cocolife's Premium Income Totaled P6.8 Billion

Financial Highlights

 

In 2016, Premium Income or income exclusively from business operations totaled PhP6.8 billion, registering a robust 17% growth rate. It was a banner year for the company, having achieved the highest premium income level in its 38-year history. Investment income was also slightly higher than last year despite the persistent volatility in the stock market. Expenses were prudently administered, with the yearend figures approximating the budgeted provisions. The resulting net income was accordingly a new record-high, at PhP570 Million, with a growth rate of 13%.

 

Table 1: 2016 Performance Versus Previous Year’s Level

 

(P in Millions)

2016

2015

Growth Rate

Premium Income

P 6,793.45

P 5,801.90

17.1 %

Investment Income

1,093.59

1,070.63

2.1 %

Net Income

569.66

505.05

12.8 %

 

Table 2: 2016 Expenses Versus Annual Budget

 

(P in Millions)

2016 Actual

2016 Budget

Variance

Selling Expense

P 1,875.29

2,613.71

28.3 %

Policy Costs

5,041.08

4,106.10

- 22.8 %

General & Admin Exp.

357.02

335.66

- 6.4 %

Prov. for Income Tax

43.99

83.10

47.1 %

Total

7,317.37

7,138.57

- 2.5 %

 

Table 3: Four-Year Historical Performance

 

(P in Millions)

2016

2015

2014

2013

Compounded Annual GR

Premium Income

6,793.45

5,801.89

4,965.08

4,610.26

13.8%

Investment Income

1,093.59

1,070.63

1,089.30

1,024.00

2.2%

Net Income

569.66

505.05

524.00

454.03

7.9%

 

 

Marketing Initiatives

 

1. Group Marketing – Industry-wide reputation for highly customized packages and prompt claims processing with personalized servicing has put Group Marketing Division as the perennial number one Group Insurance and Micro-insurance provider in the entire industry. It continued to close big corporate accounts as well as SMEs and has also continually expanded the Migrant Workers Insurance Program, in tandem with UCPB Gen. It managed to end the year with PhP1.95 billion, an exemplary performance by any measure.

 

2. Healthcare – Despite the continuing price war and cutthroat competition in its industry, Cocolife Healthcare ended the year with a Total Premium Income of PhP2.03 billion, a strong 21% growth. It continued to reinforce its direct business unit and actively tapped the agency network as a distribution arm. Cocolife Healthcare’s main draws are still its reputation for prompt payment, highly customized plans and 24/7 servicing, delivered through one of the industry’s largest service provider networks.

 

3. Individual Marketing – In 2016, IMD’s level growth was due mainly to a continuing manpower clean-up and the shift to Variable Life from traditional products. This resulted in a slight dip in the sale of traditional plans and a significant growth in VL (12.8%), as the agents transitioned. During the year training modules were directed to the marketing of VL in different markets and multifarious needs. An activation program for new agents was likewise initiated and foreign travel contests and drives were launched to boost recruitment and sales activities.

 

4. Alternative Distribution Channels – ADC is an umbrella group comprised of Promo Sales, Bancassurance and Mass Marketing. In 2016, the combined new business brought in by the team breached the 2 billion mark, at P2.11B, which is a growth spurt of 60% over the previous year.

 

a. Promo Sales - Promo operations have been put up in 28 major malls sites nationwide, bringing in an average of P41M a month in new business.

 

b. DepEd Teachers Insurance and Loan Program – The DepEd market overseen by the Mass Marketing unit, currently generates an average of P11M in premiums monthly, apart from the loan business of more than P2.4 billion, extended to over 26 thousand teachers.

 

 

Table 4: 2016 Total Premiums by SBU Versus Previous Year’s Level

 

BUSINESS LINE       

2016

2015

Growth Rate

Group Marketing

1,946.49        

2,075.84         

-6.2%

Healthcare

2,034.03

1,682.23

20.9%

Individual Marketing

689.37

693.51

-0.6%

Alternative Dist. Channels     

2,112.64

1,324.19

59.5%

TOTAL  

6,793.45

5,801.89

17.1%

 

 

Other Initiatives

 

1. Finance – Comprehensive market monitoring, continual streamlining of procedures and realignment of organizational groupings were the key initiatives in maximizing investment opportunities and improving accounts management. The company’s Investment Group was recently awarded by the Association of Mutual Funds for outstanding performance for their Cocolife Fixed Income Fund and Cocolife Dollar Builder Fund.

 

2. Other Programs – Major backroom activities that were continually reinforced were the ISO Quality Management System accreditation, various business conservation programs, and IT systems and telecommunications upgrading. Social responsibility initiatives have also been pursued, such as medical missions by the Healthcare team, Red Cross blood donation, and the continuing scholarship program for the children of coconut farmers sponsored through the UCPB-CIIF group Foundation.

WHAT YOU CAN READ NEXT

  • Cocolife takes part in DepEd’s Brigada Eskwela in Baguio City

    Thursday, June 08, 2017

    Cocolife takes part in DepEd’s Brigada Eskwela in Baguio City

    Through the Department of Education’s “Brigada Eskwela”, Cocolife, the country’s first and only ISO certified life insurance company, gave its support by donating cleaning materials to Fort Del Pilar Elementary School, Baguio City.

     

    The said activity was led by Cocolife Marketing Planning personnel Mylen B. Anduyon and Babe Ruth P. Aluad together with Cocolife Baguio Agents Fe Alievara, Evangeline Cabay, Jane Hambon Urgele Manongyao, and Delmer Sales with school officials represented by Principal Amalia K. Micklay.

  • Cocolife joins DepEd’s Brigada Eskwela 2017

    Wednesday, June 07, 2017

    Cocolife joins DepEd’s Brigada Eskwela 2017

    In line with the company’s standing policy to promote social responsibility, Cocolife, the biggest Filipino owned-stock life insurance company in the Philippines, recently showed its support to Department of Education’s “Brigada Eskwela” by providing cleaning materials to Manuel A. Roxas Elementary School in Baguio City. Cocolife Marketing Planning personnel Mylen B. Anduyon and Babe Ruth P. Aluad led the event together with Cocolife Baguio PSO Agents Jenica Maure and Sheila Jane Velaso with school officers represented by Principal Benilyn J. Domanog.
  • Cocolife supports DepEd's Brigada Eskwela in Baguio City

    Tuesday, June 06, 2017

    Cocolife supports DepEd's Brigada Eskwela in Baguio City

    As an active participant of Department of Education's development programs, Cocolife, the biggest Filipino-owned stock life insurance in the Philippines, showed its support by donating cleaning materials to different elementary schools in Baguio City. Among the schools visited were Manuel A. Roxas Elementary School, Fort Del Pilar Elementary School, and Happy Hollow Elementary School.

     

    Cocolife Marketing Planning personnel Mylen B. Anduyon and Babe Ruth P. Aluad spearheaded the activity together with Cocolife Baguio Branch Manager Cristina Luczon and Agents Dyna Dayawen and Lolita Bulosan with school officials from Happy Hollow Elementary School represented by Principal Gemma N. Lomboy.