PHILAMLIFE CLOSES 2001 WITH RESPECTABLE GROWTH

The Philippine American Life and General Insurance Company (Philamlife), the largest and most diversified life insurance company in the country, recently reported a respectable performance in 2001 despite the difficult business environment during the year. The company generated Gross Revenues of P14.1 billion, up by 9% versus that in 2000. It registered Total Assets of P64.6 billion and a Net Income of P2.5 billion.

Total Volume of Life Insurance In-Force reached P207.0 billion at the end of 2001, for a 10% growth. Benefits Paid amounted to P3.0 billion, 17.2% greater than the previous year.

Despite the generally weak market conditions, Ordinary First Year Premium Income (OFYPI), a measure of new business generated, reached a record P1.6 billion, growing 8.4% during the year. Total Premium Income, which includes renewal premiums, reached P7.6 billion in 2001, representing an 8.3% increase over the previous year's level of P7.0 billion.

A highlight of the year was the new monthly sales record of P223.5 million OFYPI set in August 2001. This marks the first time the company has exceeded the P200 million OFYPI mark in a single month.

Philamlife continued to be a major provider of long-term funds, with Invested Assets totaling P61.2 billion in 2001. It made significant long-term investments in Philippine government securities, purchasing P4.4 billion worth of Fixed Rate Treasury Notes (FXTNs) and Philippine government-issued dollar bonds in 2001. Philamlife has substantial government bond holdings amounting to P27.4 billion as of 2001. Net Investment Income reached P5.2 billion, 7% higher than in 2000.

In Philamlife's recent Annual Stockholders Meeting, the following were re-elected as members of the Board of Directors: Maurice R. Greenberg, Chairman and Chief Executive Officer, American International Group (AIG) and Chairman of the Board, Philamlife; Edmund S.W. Tse, Senior Vice Chairman and co-Chief Operating Officer, AIG, and Vice Chairman, Philamlife; Edward E. Matthews, Senior Vice Chairman for Investments and Financial Services, AIG; Jose L. Cuisia, Jr., President and CEO, Philamlife; Cesar C. Zalamea, President & Managing Director, AIG Investment Corp. (Asia), Ltd.; Washington Z. Sycip, Founder, SGV Group; Ricardo J. Romulo, Senior Partner, Romulo, Mabanta, Buenaventura, Sayoc & de los Angeles Law Offices; Cesar A. Buenaventura, Managing Partner, Buenaventura, Echauz & Partners; and Ramon L. Jocson, General Manager, IBM Global Services ASEAN/South Asia.

Philamlife is a member company of American International Group, Inc. (AIG).

# # #

AIG is the world's leading U.S.-based international insurance and financial services organization, the largest underwriter of commercial and industrial insurance in the United States, and among the top-ranked U.S. life insurers. Its member companies write a wide range of general insurance and life insurance products for commercial, institutional and individual customers through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making, and consumer finance. AIG has one of the largest retirement savings businesses in the United States and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

# # #

Back to Homepage