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)



Growth Rate

Premium Income

P 6,793.45

P 5,801.90

17.1 %

Investment Income



2.1 %

Net Income



12.8 %


Table 2: 2016 Expenses Versus Annual Budget


(P in Millions)

2016 Actual

2016 Budget


Selling Expense

P 1,875.29


28.3 %

Policy Costs



- 22.8 %

General & Admin Exp.



- 6.4 %

Prov. for Income Tax



47.1 %




- 2.5 %


Table 3: Four-Year Historical Performance


(P in Millions)





Compounded Annual GR

Premium Income






Investment Income






Net Income








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





Growth Rate

Group Marketing








Individual Marketing




Alternative Dist. Channels     










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.


  • Announcement

    Thursday, February 28, 2019


    Here's our most recent company updates.

  • 2019: A Cautiously Optimistic Year (A sit down interview with Mr. Andy L. Tan)

    Monday, February 04, 2019

    2019: A Cautiously Optimistic Year (A sit down interview with Mr. Andy L. Tan)

    Mr. Andy L. Tan, an Investment Manager and the First Vice President – Head of Investment Management at Cocolife, the biggest Filipino-owned stock life insurance company in the country has something to say about this year’s economy and Cocolife’s fund performance.


    A Turbulent Year


    2018 has been a surprisingly challenging and volatile year for global indices, in fact, the worst since 2008 during the financial crisis. Key themes that blanketed market movements last year were the less synchronized global economic growth, intensified further by the worsened US-China trade dispute; EU conflicts including the Brexit impasse and Italy’s populism; rising global oil supply, also pressured by geopolitics; and the Federal Reserve’s policy normalization push, among others.


    At home, macro pressures – specifically that of aggressive interest rate hike due to overshooting inflation, widening current account deficit and peso weakness – prompted a cautious stand among local and foreign investors. The resiliency of the Philippine economy was indeed tested in 2018, but the Economic Managers and the Bangko Sentral ng Pilipinas (BSP) did an adequate job of keeping both growth and inflation expectations in check.


    On This Year’s Fund Forecast


                Mr. Tan mentioned that they see 2019 as a cautiously optimistic year for capital markets. Locally, sentiments appear to be bullish in the midst of improved macro backdrop instigated by easing inflation pressures and stabilizing peso movement alongside moderating headwinds.


                This year is steered with high hopes of a feasible 7-8% gross domestic product (GDP) growth backed by the recurring demand from the Build Build Build (BBB) infrastructure program, reflecting resilience despite the looming global economic slowdown. This year’s key focus also include the passage of the remaining tax packages, May election results and the BSP policy moves.


                Moving forward, volatility is still expected as uncertainties that emanated from 2018 drags into the new fiscal year. Overseas, there are certainly clouds on the horizon as prospects for global growth remains on the downside, along with economic deceleration projections in developed markets (DMs) including the US, China and the European bloc. Further causing disruptions is the Sino-American trade stand-off, which remains unclear but is fairly improving with talks underway.


    Long-term, we are positive on Philippine equities given the country’s sustainable economic growth and corporate earnings expansion. Mr. Tan also mentioned that the fixed income market is expected to recover this year as we expect the local inflation print to return within the BSP’s 2-4% target range. Likewise, policy tightening pressures externally have been showing signs of moderation, particularly the slower pace of rate hike from the world’s largest economies.  We expect a dovish policy path from the Federal Reserve, with prospects of two rate hikes this 2019. As for the BSP, corresponding tightening is also anticipated, with possible one to two more tweaking moves, as tighter monetary policy is necessary to keep inflation expectations anchored to the their target range.


    Best Options for Clients


                Mutual funds are mostly catered for people who don’t have the expertise, the time to manage or invest their own funds. Mr. Tan said that by investing in mutual funds, the clients can maximize the expertise of the fund managers wherein these experts will make the investment decision for its clients with due diligence. Moreover, clients are also able to maximize their profit or earnings given the power of pooling the funds together even with a small capital. He also mentioned that clients can invest on funds for as low as P5, 000 and can get the same return as someone who invested with a high amount.  


                “It’s very hard to catch the swings and we all know that the basic principle in investing is buy lows and highs, this means that we should invest when the prices are low and sell when at its peak.” He said. In addition, the best suggestion for investors is to do cost averaging, setting aside a fix amount that they can invest on a regular basis because the cost will average out overtime.


                Aside from investing in mutual funds, it is also advisable to purchase a Variable Life. Variable life is a combination of life insurance and investment where it provides lifelong coverage as well as fund value account. Policies like Variable life have higher upside potential than other permanent life insurance policies as you can choose how the premium is invested from a variety of options. However, it is important to be cautious as variable life insurance policies often come with higher fees than other cash value life insurance policies.


                In conclusion, those who have a variable life insurance policy will typically be required to take a more active role in the investment portion of the policy. Therefore, it is a good idea to know and understand how investing in stocks, mutual funds, and other investment vehicles works before moving forward with the policy purchase. On the other hand, financial advisors should also take active role in ensuring the financial goals of the client are met.


    A mindset to achieve financial goals


    “We should always be on the lookout for opportunities.”


    He also mentioned that it is always a sure win if someone invests in a bull market, while investing in a volatile market is a challenge. Essentially, a volatile market is a difficult market to trade but there are windows of opportunity, if this market corrects, it is a chance for investors to come in. The key to it is to be open and continuously look for those opportunities.

  • Cocolife managed funds bags awards from 12th PIFA Awards Night

    Tuesday, January 22, 2019

    Cocolife managed funds bags awards from 12th PIFA Awards Night

    Cocolife Asset Management Company, Inc. (CAMCI) continues to uphold its vision of ‘Leading the Way’, committed to create solutions for every financial aspirations as it bagged anew numerous awards from the Philippine Investment Funds Association (PIFA) during its 12th Annual Awards Night held last December 10, 2018 at the Tower Club Makati.


    The three mutual funds managed by CAMCI – United Fund, Inc. (UFI), Cocolife Fixed Income Fund, Inc. (CFIFI), and Cocolife Dollar Fund Builder, Inc. (C$FB) won individual recognitions for their 2017 performances in terms of one-year, three-year and five-year returns.


    UFI won 1st place for the 1-year return category of the Peso-denominated equity funds, outperforming 14 other competitors. It also placed 2nd for the 3-year return in the same category. Likewise, CFIFI notably topped the rankings of Peso-denominated bond fund as it garnered 1st place in all the 1-year, 3-year and 5-year returns, surpassing 10 other competing funds in the industry. C$FB, meanwhile, bagged 2nd place for the 5-year return category, poising excellence in the Dollar-denominated balanced funds.


    Every year, PIFA convenes an annual awards night to gather members of the mutual funds industry, celebrating and acknowledging the funds’ exceptional performance for its investors. This tradition, which started over 10 years ago, continues to support PIFA's commitment of serving the investing public.