INSURER NTUC Income has bucked the current slowdown by notching up strong 14 per cent growth in its life insurance premiums (excluding annuities) to $255.8 million last year.
This was a far stronger performance than overall industry growth in the same period of a mere 3 per cent.
Income posted strong figures during the second half even as the turmoil from the global financial crisis rocked markets and left many insurers struggling.
The firm said it had emerged as a market leader during the six-month period as its life insurance sales jumped 30 per cent to $149.2 million, compared to an overall industry contraction of 18 per cent.
That was in contrast to a 2 per cent contraction in its life premiums in the first half of last year.
During the same period, the insurer also emerged as the market leader in the annuities segment, accounting for more than half of the overall sales.
Income's strong second-half performance was strongly supported by solid growth in the final three months of last year - just as the financial crisis was reaching a grim crescendo.
In fact, Income said it was the only insurer here during that turbulent period which posted a positive sales growth - of 8 per cent, compared with the same period a year earlier. This was in stark contrast to the 42 per cent contraction registered by the industry.
The figures are based on a weighted premium measure which takes into account just 10 per cent of a single premium and all of a year's premiums for regular premium plans.
Income chief executive Tan Suee Chieh attributed last year's strong performance to its multi-channel distribution strategy, ongoing focus on its people and its reputation as a trusted Singapore company.
'We engaged independent financial advisers and re-established our ties with corporate agents selling motor insurance. This, and probably some luck, is an important reason for our sales success.'
Besides its 600 full-time and 900 part-time agents, Income's products are available through its branches, brokers, corporate agents and the Internet.
When Mr Tan took over the helm in February 2007, he had a vision of making the firm Singapore's top insurer by this year. He also wanted to reclaim its No. 1 position in the motor insurance business here, a spot it last held in 2004.
Last year, Income's motor insurance business grew 37 per cent to $237 million, compared to an industry projected growth rate of 19 per cent. This worked out to a market share of 26.5 per cent.
Looking ahead, he said: 'I'm happy if we remain in positive territory this year because of the tougher environment.'
In view of the gloomy economic climate, Income said it would cut costs to save jobs in the short term, instead of vice versa. It also expects to invest in the areas of customer service, sales and information technology.
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