29 Feb 2008
Embargoed until 1 March 2008
Increased focus on people, products and distribution channels reaps dividends
Singapore, 29 February 2008 – NTUC Income today reported a stellar set of results for 2007, marking its best performance in years with growth outpacing the industry in all business segments.
NTUC Income’s life insurance results comes shortly after the Life Insurance Association of Singapore reported a bumper year for the life insurance industry, boosted by a strong economy and favourable market conditions.
In 2007, NTUC Income’s annual premium income (API) grew 55 percent against the industry’s 28 percent and was the highest in NTUC Income’s history. The previous high of $85m was in 2000.
Its single premium income (SPI) soared 92 percent, the second highest in the company’s history and nearly three times the industry’s growth of 34 percent. Prior to this, NTUC Income’s highest SPI of $1.97b was in 2001.
Weighted premiums, excluding annuities, jumped 72 percent compared to the industry’s 30 percent.
Its general insurance results show that NTUC Income similarly outpaced the industry growth by two and a half times. Its motor insurance business, which forms the bulk of its general insurance business, saw a growth after 2 years of contraction.
NTUC Income CEO Tan Suee Chieh attributed the company’s sterling performance to an increased focus on its people, products and distribution channels.
He said: “NTUC Income’s excellent results can be credited to our energised and motivated sales force, along with our focus on giving customers a wide range of choice in products and distribution channels. These factors are the driving force behind NTUC Income’s transformation, helping us meet Singaporeans’ changing needs and aspirations.
“It is only through commercial excellence that we can continue to serve our social purpose as Singapore’s most trusted insurer – providing Singaporeans with insurance that is affordable, accessible and sustainable.”
Mr Tan recently marked his first year of tenure at the company, which has been defined by the “Cultural Revolution” he spearheaded to transform NTUC Income into a more dynamic and focused social enterprise. This is intended to make the company more nimble in adjusting to market changes, and in driving change across the competitive landscape.
The transformation will be evident in the innovative and inspired products NTUC Income has in the pipeline, complemented by more distribution channels better attuned to customer needs. NTUC Income products are currently available through the company’s financial consultants, business centres, brokers, corporate agents and the Internet.
NTUC Income also reported significant improvements and new milestones in its operations including improvement in the productivity by its financial consultants in 2007. Productivity per financial consultant grew 46 percent to $1.4 million for single premium products, and 79 percent to $120,000 for regular premium products.
Moving forward, NTUC Income expects its growth momentum to remain strong and similarly outpace industry growth in 2008.
About NTUC Income
Established in 1970 in response to the growing needs for affordable insurance, NTUC Income has become a leading life, health and general insurer, earning the trust of 1.8 million customers.
The $20 billion company has been rated “AA” by independent credit ratings agency, Standard & Poor's since 1999, the highest accolade given to a domestic insurer in Asia, reflecting a strong financial profile, flexibility and capacity to meet new challenges.
NTUC Income's insurance plans benefit large numbers of Singaporeans from all strata of society, and the company supports the community through financial contributions to charities and other worthy causes.