Tokio Marine Life records 23 per cent growth in new business
Posted on August 18, 2012, Saturday
KUCHING: Tokio Marine Life Insurance Malaysia Bhd (Tokio Marine Life) posted a 23 per cent increase in total new business annualised premiums equivalent (APE) sales for the financial year ended Dec 31, 2011, exceeding the industry growth of 5.9 per cent.
This increase was derived from both conventional and bancassurance business, contributing 73 per cent and 27 per cent, respectively to the total sales of RM156.2 million compared with RM126.9 million achieved in 2010. The strategic tie-up with RHB was picking up momentum as bancassurance (APE) saw a growth of more than 86 per cent.
Commenting about the results, the group’s chief executive officer, Toi See Jong said, “The positive results were driven by the successful implementation of our strategies, high productivity achieved by our 2,500 strong agency force and our growth in bancassurance business with RHB as well as our branch expansion.
“This was also coupled with a good mix of life insurance and investment-linked business with high protection and attachments that continued to favour us as well as strong and prevalent customers’ trust in our product offerings,” said Toi.
The company’s investment linked-funds grew at 98 per cent to RM8.6 million in 2011, while the annualised first year premiums of investment linked regular premium grew at 72 per cent, capturing a sales of RM10.6 million.
Tokio Marine Life invested RM1.7 million in training to develop its agents and agency leaders as well as recruited over 600 new agents last year in an effort to grow the business. This year, Tokio Marine Life planned to further ramp up its agency force by an additional 1,000 agents.
“Our new recruits play an important role in contributing towards new business growth. Currently, 17 per cent of our new business is contributed by new recruits. This can be attributed to the support and training programmes conducted by Tokio Marine Life to ensure that our new agents are well trained to provide quality financial advice to our customers,” added Toi.
With a strong customer base of over 240,000 nationwide and supported with bancassurance, Tokio Marine Life has moved from 11th position to ninth position last year capturing a market share of 3.1 per cent as of 2011.
“We are optimistic that 2012 will be another year of success as we continue to focus on customer service, agency force and create innovative product offerings. We remain committed to improving the quality of our business and constantly strive for innovation.
“For the first quarter of 2012, we have moved up another notch and successfully captured the eighth position in the market. This achievement reflects our commitment to record an impressive growth year on year towards meeting our goal to be the top five insurer in the next five years,” concluded Toi.
Tokio Marine Life is committed to double its agency force to 5,000 agents in the next three to five years while working towards growing its bancassurance business to contribute 50 per cent to its revenue, hence, having a good balance with conventional business.
This will be achieved through the support of the three new recruitment centres in Johor Bahru, Butterworth and Miri, Sarawak as well as a strong network of agents spread across East and West Malaysia.
As at end of the financial year Dec 31, 2011, Tokio Marine Life’s total asset was valued at RM5.5 billion with a paid-up capital of RM100 million. Its global asset was valued at over RM360 billion.