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Philippines Insurance Report Q2 2016

Philippines Insurance Report Q2 2016

BMI View: We retain our positive view of the Philippines' insurance sector, which offers significant growthpotential. Life insurance should benefit from higher household incomes. Good pricing power on the part ofproperty insurers (and increased volumes) will drive growth in that sub-sector and for the non-life segmentas a whole. Both the life and the non-life segments should benefit from the generally favourable economicenvironment.

Key Updates And Forecasts:

We remain upbeat about the prospects for the life segment, and forecast steady growth in premiums ofaround 7% annually. The latest results indicate that the leading life companies have been enjoyingprofitable growth, in part because of improved investment income relative to 2014. Various driversshould support the continued expansion of the life segment. These include growth in the number andwealth of households that can afford life insurance. In the meantime, life insurers themselves willcontinue to exploit strengths such as brand names, multi-channel distribution strategies, ease of access tothe capital that they need and product innovation know-how.

We have significantly increased our forecasts for the premiums to be written by the non-life segment. Inparticular, we are more positive about the prospects for the property insurance sub-sector, which is thelargest element of the segment that can be identified separately. The Philippines' economy has performedreasonably well through 2015, and should continue to do so. In addition, we believe that property insurersshould be able to pass on higher claims (and other) costs to their customers.


BMI Industry View
Table: Headline Insurance Forecasts (Philippines 2013
2020)
SWOT
Insurance
Industry Forecast
Life Premiums Forecast
Table: Life Premiums (Philippines 2013
2020)
Table: Life Insurance Claims (Philippines 2008
2015)
NonLife Premiums Forecast
Table: Non
Life Premiums (Philippines 20132020)
Table: Non
Life Insurance Claims (Philippines 20092015)
NonLife SubSector Forecast
Motor: A Dominant Line
Transport: The Weak Link
Property: Demand Stays High
Credit And Financial Guarantee: On The Right Track
Table: Non
Life Insurance Premiums By Product Line (Philippines 20132020)
Insurance Risk/Reward Index
Asia Pacific Industry Risk/Reward Index
Table: Asia Pacific Insurance Risk/Reward Index Q216
Market Overview
Life Market Overview
The Product Offering
The Competitive Landscape
Table: Life Insurance Market, 2010
2014 (USDmn)
NonLife Market Overview
The Product Offering
The Competitive Landscape
Table: Non
Life Market Share, 20102014 (USDmn)
Company Profile
AIA Group
AXA
Insular Life/MAPFRE Insular
Manulife Financial
Prudential plc
Sun Life Grepa Financial/Malayan Insurance
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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