Life insurance sales post 8% rise in Q3

Life insurance sales post 8% rise in Q3
By Kristie Neo | Posted: 06 November 2012 1804 hrs
     
SINGAPORE : Life insurance sales in Singapore grew a modest 8 percent in the third quarter of this year, compared to a year back.

According to the Life Insurance Association of Singapore (LIA), the industry clinched S$562 million in weighted new business premiums in the three months ended September 30.

The growth was driven by annual premium sales, which rose 18 percent to S$408.6 million.

However single premium sales pulled back 13 percent to S$153.7 million.

For the first nine months of the year, weighted new business premiums hit S$1.6 billion, up 10 percent from the corresponding period the year before.

This growth was also driven by positive regular premium sales which stood at S$1.16 billion, registering a 20 percent growth over the same period.

Looking forward however, LIA says they will be taking a 'restrained' view in target estimates for the next quarter.

Mr Tan Hak Leh, President of the Life Insurance Association said: "Given the challenging economic environment, the performance of the life insurance industry for 2012 could potentially be impacted. However it is comforting to note the overall growth as well as the sustained and healthy performance of regular premium sales, which comprised long-term life insurance plans such as participating products which offer protection and savings."

This is in line with the latest review by the Monetary Authority of Singapore which indicated that the local economy is likely to see sluggish growth for the rest of the year and for 2013.

- CNA/ch

- wong chee tat :)