PHILIPPINES First Insurance Co., Inc. (PhilFirst) is bullish on its growth prospects for this year, even as the nonlife insurance market remains “very competitive,” a top official said.
“We went through organizational changes with a new setup. I think this year is going to be a good year for us. With the changes and the new products that we have developed, I think growth is an assured thing,” PhilFirst Chairman Eusebio H. Tanco said on the sidelines of the nonlife insurer’s 119th anniversary celebration on Wednesday.
Mr. Tanco said he was “not very satisfied” with PhilFirst’s growth in 2024.
“Maybe because of my other companies. My other companies are all doing extremely well. Compared with the industry, we’re okay. But compared with my other companies, it was lagging behind. But it’s not doing bad. It can do much better,” he said.
PhilFirst is part of the Tanco Group of Companies’ Philippines First Insurance Group, along with life insurer Philippines International Life Insurance Co., Inc. (PhilLife), pre-need firm Philplans First, Inc. (PhilPlans), and health maintenance organization PhilhealthCare, Inc. (PhilCare).
The Tanco Group’s other businesses include Asian Terminals, Inc. and STI Education Systems Holdings, Inc.
Mr. Tanco said they hope PhilFirst’s two new nonlife insurance products will boost sales this year.
The insurer on Wednesday launched cyber and travel insurance products to mark its 119th anniversary.
“Our new initiatives continue the legacy of protection that PhilFirst has given to several generations of Filipinos,” PhilFirst President Jaeger L. Tanco said in a statement. “Celebrating 119 years is not just about looking back at our achievements. It’s about looking forward — adapting, innovating, and meeting the ever-changing needs of our countrymen.”
“The Personal Cyber Insurance is our way of safeguarding the online lives of Filipinos, while our Travel Insurance aims to make their adventures worry-free, especially as travel becomes more accessible and integral to many Filipinos,” the younger Mr. Tanco said.
PhilFirst Cyber Insurance covers identity theft, electronic fund transfer fraud, and online retails scams, the company said.
Meanwhile, PhilFirst Travel Insurance is targeted towards modern Filipino travelers, it said.
“The product comes at an opportune time as the World Travel and Tourism Council projects at least 25% annual growth in travel. PhilFirst partnered with a seasoned and stable provider to ensure a seamless claims process for its clients, making its Travel Insurance an essential companion for any wanderlust.”
The older Mr. Tanco said the nonlife insurance sector will continue to be “very competitive” as supply continues to exceed demand, with capacity way bigger than insurable assets.
“What’s scary about nonlife is natural calamity. There’s no market for it… But people will tend to look for natural calamity together with, say, attendant to fire, typhoon and flood and earthquakes,” he said.
“Premium will be a challenge because if people cannot get the cover that they want, even if they go abroad, it will be difficult for them. They have to pay a ridiculous premium.”
Mr. Tanco said they are also looking at cross-selling to boost their growth, as well as potential partnerships.
“Insurance is never a luxury. It’s a necessity.”
PhilFirst posted a net loss of P17.75 million in 2023, according to Insurance Commission (IC) data based on companies’ annual statements. Gross premiums written stood at P380.11 million, while net premiums written were at P178.31 million. Premiums earned totaled P170.35 million.
Meanwhile, the Philippine nonlife insurance sector booked a combined net income of P6.406 billion in the first nine months of 2024, up from P5.468 billion in the same period in 2023, IC data showed.
Gross premiums written were at P96.79 billion, while net premiums written stood at P53.13 billion. Combined premiums earned stood at P49.02 billion.
By line of business, bulk of the net premiums written by the industry in the period were for motor products, followed by fire and other casualty insurance. — A.R.A. Inosante
