The Insular Life Assurance Co., Ltd. (InLife) expects to sustain double-digit growth in its new business annual premium equivalent (NBAPE) through next year, as continued economic uncertainty could fuel demand for financial protection, the company's top official said.

"We're doing well. I think we will end the year around 40%... If you look at our economic environment today, it's very difficult. And on top of that, you have political issues. There's a lot of uncertainty. And yet we were able to fight and register good growth," InLife President and Chief Executive Officer Raoul Antonio E. Littaua told reporters on Friday.

"I guess part of it also, and I noticed this, when times are uncertain, people look for security. And that's maybe one of the reasons our growth has been so good. So, we'll probably be able to sustain our growth momentum [until next year]."

Citing data from the Insurance Commission (IC), Mr. Littaua said InLife's NBAPE grew 37% year on year to P2.704 billion as of June.

"We're about to enter the last four months. I think we will be able to sustain. This year, at least on the topline, new business, this will be one of our best years ever."

He said the performance is backed by strong demand for the company's products. Growth in its bancassurance partnership with Union Bank of the Philippines has been mainly driven by variable life insurance (VUL) products, while its agency arm saw balanced demand for both VUL and traditional offerings.

Demand for VUL, which makes up the majority of InLife's book, is being driven by clients' need for diversified investments, particularly outside the country, given the local market's stagnant performance.

"The VUL, number one, of course, we have to look for funds that will provide a good return. Unfortunately, the local stock market is not able to do that. Stocks are so undervalued. That's why we have offerings in the VUL of foreign funds that are also income-paying funds, and so on," he said.

The company continues to offer traditional products amid steady demand for guaranteed but smaller returns, he added.

On Friday, InLife launched InLife Global Care, a health insurance plan that includes healthcare coverage with inpatient and outpatient benefits available both in the Philippines and abroad, offering up to P125 million in annual coverage.

Still, Mr. Littaua acknowledged that the weak macroeconomic environment could adversely affect the company's performance, as elevated inflation weighs on consumers' purchasing power. This is a notable consideration in the Philippines, where life insurance penetration has historically remained low relative to more developed markets, leaving much of the population without formal financial protection.

"In terms of headwinds, it's still the uncertainty, because until now, that war is still unresolved. Inflation still remains high, the dollar-peso is at a new low. But the need of people for protection is not gonna change. Maybe at lower market segments, especially when you take into account inflation, how much can they really set aside for protection, for savings, and that?"

Mr. Littaua said his goal is for InLife to become the country's number one life insurer in terms of new business before 2030.

"What I really want to happen is that before this decade is out, a Filipino life insurance company is number one in its own country. We're the only one. It's an industry dominated by multinationals."

On a consolidated basis — which includes InLife Benefits Insurance Co., Inc., which booked P373.16 million in NBAPE as of end-June — Mr. Littaua said the group ranked sixth among life insurers in terms of new premiums.

InLife is also eyeing entry into the takaful insurance market, a Shariah-compliant system of insurance grounded in mutual cooperation, though its team has determined that it may begin by introducing a rider product first rather than a full-fledged plan.

Meanwhile, the company expects its stated net income to double next year as the industry complies with the Philippine Financial Reporting Standard 17, which is aligned with the international IFRS 17 accounting standard, under which the computation of costs will be spread out more evenly across a policy's life.

Based on IC data provided by the company, InLife's net income stood at P1.079 billion for the first half of the year. It had total assets of P178.263 billion and total premium income of P16.48 billion. — A.M.C. Sy