AXA Philippines on track to meet growth targets

PHILIPPINE AXA Life Insurance Corp. (AXA Philippines) is on track with its growth goals as it seeks to be the number one life insurer in the country and sustain a double-digit expansion in premiums by yearend and the years to come.

AXA Philippines said it is looking at a robust growth for the firm for 2017 after it booked a 30% growth in its net premium income in the first three months of the year, which the insurer also eyes to maintain until the year 2020.

“Yes, I think if you look at the potential, we are targeting a similar growth for the next few years,” AXA Philippines President and Chief Executive Officer Rahul Hora told reporters when asked if they are eyeing to sustain the 30% increase in its net premiums for the rest of the year versus the industry’s 14% growth in the January to March period.

Preliminary data based on quarterly reports submitted by life and non-life companies to the Insurance Commission (IC) showed the sector’s total income from premiums in the first quarter jumped to P57.035 billion, a 19.51% expansion from the P47.725 billion booked in the same period a year ago.

Broken down, life insurers posted P44.08 billion premiums at end-March, a 14.19% growth from the P38.36 billion recorded in the same period in 2016.

Asked what drove the 30% growth in AXA Philippines’ total premiums in the first quarter, Mr. Hora attributed the expansion to its health product line. “One of the fastest growing lines of business for us is health… That was the fastest growing line of business in the first quarter of this year.”

Mr. Hora also noted that the growth they are looking at will be sustained until the year 2020, aligned with their “Ambition 2020.”

According to Mr. Hora, indicators supporting their growth target are the country’s economy, good demographics and the rise in disposable income among Filipinos.

“So if you look at all the indicators and if the country’s economy is doing well…I will see the penetration of our insurance market will improve… Insurance penetration to go up in the next few years to come,” he said.

Mr. Hora added that AXA wants to be the number one life insurance company in the Philippines.

“I think in a few years from now, we want to be the number one. But this year, we are on track with the plans that we have. We’re looking at robust growth for AXA Philippines and we are on track with that particular growth.”

Latest data from the IC showed AXA Philippines ranked second in premium terms in 2016 with P21.6 billion. — Janine Marie D. Soliman