Philippine Prudential Life Insurance Company, Inc
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Philippine Prudential's New Company Logo | |
| Private | |
| ISIN | 🆔 |
| Industry | Insurance |
| Founded 📆 | February 18, 1963 |
| Founder 👔 | Daniel L. Mercado, Sr. |
| Headquarters 🏙️ | , Pasig City, Manila , Philippines |
Area served 🗺️ | Philippines |
Key people | Gregorio "George" D. Mercado CEO |
| Revenue🤑 |  ₱891 million (2010) |
| ₱30.2 million (2010) | |
| Total assets | ₱682 million (2010) |
| Owner | Gloria D. Mercado (24.9%) Daniel M. Mercado, Jr. (16.12%) |
| Members | |
Number of employees | |
| 🌐 Website | www |
| 📇 Address | |
| 📞 telephone | |
Philippine Prudential Life Insurance Company, Inc. (Philippine Prudential) is a privately held insurance company doing business in the Republic of the Philippines. It was founded in 1963 by Daniel L. Mercado, Sr. and is currently run by his grandson, Gregorio "George" D. Mercado, who serves as President and CEO. As of December 2011[update], Philippine Prudential had over ₱120 billion of business-in-force,[1] and is among the top 15 life insurance companies (ranked according to paid-up capital) in the Philippines, and one of the top 10 wholly Filipino-owned life insurance companies.
History[edit]
The company was founded in 1963 by businessman and philanthropist Daniel L. Mercado, Sr. with total assets of just under ₱500 thousand.[2][citation needed] In 1979 his grandson George Mercado took a job as head of sales at Philippine Prudential, then resigned six years later when Manila's business environment became untenable, taking a job in the United States. In 1996, Daniel L. Mercado, Sr. died, leaving the company in the hands of his son Daniel M. Mercado, Jr. In 1999 George Mercado returned to the firm, and assumed the post of President and CEO from his father in June 2004.
Philippine Prudential is among the Top 15 Life Insurance Companies (according to Premium Income) in the Philippines, as well as among the Top 10 wholly Filipino-Owned Life Insurance Companies.[3]
On July 9, 2012, the company received its Certificate of Authority (CA) after meeting the requirements of the Insurance Commission of the Philippines. .[4]
Investors[edit]
Philippine Prudential Life Insurance Company is privately held by the Mercado family, owners of a rural bank, and a non-life insurance company. Because the Insurance Commission will require by 2012 life insurers to be capitalized at ₱250 million, Mercado has stated that he may offer additional shares of the company to outside investors in 2012.[5] Philippine Prudential has over 1.8 million policy holders.[6]
Performance and outlook[edit]
The company's premium income more than doubled in 2008, going from ₱245 million in 2007 to ₱491 million the following year. Total investments were recorded at ₱342 million in 2009 with a total of ₱72 million paid in claims.[2] As of 31 December 2011[update], it had:
- total assets of over ₱825 million
- total equity of over ₱229 million, from ₱139 million in 2005: a five-year growth of 63.6 percent;
- net income recorded at over ₱23.9 million, a 210 percent growth over five years;
- total premium income recorded at over ₱1.01 billion, a 600 percent growth over the past 5 years;[7]
- Total amount of claims paid recorded at over ₱88.5 million for the year, while the legal policy reserves, (funds invested to be used for future claims), recorded at over ₱351 million, an increase of ₱69 million from previous year;
- Total investments were recorded at over ₱351 million.[8]
In 2010, total revenues grew by 31 percent to ₱895 million, aided by a Philippine economic expansion that was the fastest in more than three decades.[5]
As of December 2011, Philippine Prudential had over ₱120 billion of business-in-force.[9]
Mercado predicted that Philippine Prudential's gross premiums will grow 30 percent in 2011, the result of additional distribution channels and sales offices, with 240 sales and marketing staff. The company also plans to expand microinsurance sales, tapping its network of 500 rural bank clients.[5]
Products[edit]
The company sells endowment plans, permanent plans, whole life plans, group plans, healthcare coverage, education and pension policies, and mortgage redemption insurance. Unlike many of its competitors, the company does not offer complex insurance policies such as variable life, whose value depends on the performance of an asset in which the premiums are invested. Mercado has been reported as saying "Philippine Prudential's market is not ready for those types of products. Once people start losing the value of their policies, they'll get mad. We'd rather offer guaranteed plans like endowment."[5]
Philippine Prudential Life Insurance Company also sells microinsurance. "We have some policies worth ₱10 thousand, which other companies won't touch," Mercado reports. "We're able to capture more Filipinos [this way]."[5]
Distribution[edit]
As of December 2012, Philippine Prudential has over 1.8 million policy holders. They are mostly depositors at rural banks, as group insurance accounts for a large share of the company's sales.[10]
Brand confusion with Prudential Life plans[edit]
Philippine Prudential is unrelated to the similarly named Prudential Life Plans Inc., a pre-need policy provider that has recently experienced financial difficulties.[11] The brand confusion has resulted in critical blog posts being written about Prudential Life Plans, but incorrectly naming Philippine Prudential.[12]
On February 8, 2012, in response to customer and public concern following current news report that Prudentialife Plans was issued a "stay order" by the Insurance Commission of the Philippines (IC). Philippine Prudential assured its policyholders and the general public, through an official media statement,[13] that it has no filial or business relationship whatsoever with Prudentialife Plans, Inc. (PPI), a pre-need company which deals in pension, education and memorial plans.
References[edit]
- ↑ "Philippine Prudential Life Insurance Company Inc.'s Corporate Profile". Retrieved July 23, 2012.
- ↑ 2.0 2.1 Superbrands. 6. Superbrands. 2010. p. 52. Search this book on
[full citation needed]
- ↑ "Ranking of Life Insurance Companies in the Philippines according to Premium Income" (PDF). Retrieved July 23, 2012.
- ↑ "Philippine Prudential Receives Certificate of Authority from the Insurance Commission of the Philippines". Retrieved July 23, 2012.
- ↑ 5.0 5.1 5.2 5.3 5.4 Ramos, Mercury (2011). "Philippine Prudential Life: Great at 48". Insurance Manila. Hillside Media & Communications. 7 (10 & 11): 34.
- ↑ "Corporate Profile". www.philprudentiallife.com. Philippine Prudential Life Insurance Company. Retrieved July 7, 2011.
- ↑ Leyco, Chino S. (March 22, 2012). "Philippine Prudential Premiums Exceed P1-B". Retrieved July 23, 2012.
- ↑ Leyco, Chino (May 23, 2011). "PPLIC gross premiums increase 26%". www.mb.com. Manila Bulletin. Retrieved July 11, 2011.
- ↑ "Philippine Prudential's Corporate Profile". Retrieved July 23, 2012.
- ↑ "Philippine Prudential Corporate Profile". Retrieved March 18, 2013.
- ↑ Agcaoili, Lawrence (30 April 2009). "Philippine Prudential Life assures policyholders". Manila Standard Today.
- ↑ Ahn, Tony (May 23, 2011). "Tips for Handling Your Brand Being Confused with Another". business2community.com. Business 2 Community. Retrieved July 7, 2011.[unreliable source?][third-party source needed]
- ↑ "Philippine Prudential Clarifies That It Is Not Prudential Life Plans". Retrieved February 27, 2012.
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