When MAPFRE INSULAR began efforts for transformation and change in 2016, the company had to make a sober, critical, and at times cold-blooded assessment of its clients, accounts, processes, and revenue streams. The need to innovate and transform was recognized but going about this takes time, as well as a combination of caution and risk-taking.
The transformations made involved reviewing and then revising certain processes and targets. Innovations in procedures, as well as technology and equipment, were implemented to promote and integrate efficiencies in a strategic manner. This resulted in a reduction of administrative and operational costs, greater profitability, higher solvency, and a more solid foundation for sustainability and growth in the years to come.
While MAPFRE INSULAR was in the thick of these changes, it also managed to keep the fundamentals constant and sound.
The Philippines' GDP grew by 6.6 percent by the fourth quarter of 2017. This spurred economic growth to 6.7 percent for the whole of 2017. Growth was driven mainly by manufacture, trade, rentals, and business activities.
Manufacturing, Trade, Real Estate, Renting, and Business Activities were the main drivers of growth for Q4. Industry outpaced other sectors as it grew by 7.3 percent. The Services Sector grew by 6.8 percent in the same quarter, followed by Agriculture by 2.4 percent. The Agriculture Sector had made a rebound from a 1.3 percent downturn in Q4 of 2016.
Both Net Primary Income as well as Gross National Income also grew compared to the same period in 2016. In 2017, NPI surged by 4.1 percent, higher than Q4 2016's rate of just 3.3 percent. As for GNI, it grew by 6.2 percent in 2017, higher than last year's 6 percent for Q4.
Based on a Q4 projection of a 105.3 million Filipino population, per capita GDP grew by 5.1 percent and GNI grew by 4.7 percent.
As for the Philippines' automotive industry, 2017 saw double-digit growth by year's end. Reports from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI); the Truck Manufacturers Association (TMA); and the Association of Vehicle Importers and Distributors (AVID) show that the industry posted a 17.66 percent increase in sales, totaling 473, 943 units.
This happened amid near panic reactions to the TRAIN (Tax Reform for Acceleration and Inclusion) Law that imposes additional excise taxes by 2018. Besides the surge in vehicle purchases (done mainly to get ahead of the additional excise taxes), a favorable economic outlook, as well as the introduction of new vehicle models, contributed to the robust market performance.
2017 represented the eighth consecutive growth year for the Philippine automotive industry. Like in past years, commercial vehicles had the greatest market share at 64.59 percent, selling 306,116 units. Passenger cars sold 167,827 units, representing the remaining 35.41 percent.
As of 2017, the Philippines is still the strongest ASEAN automotive market with 16.77 percent in gains. It outpaced Thailand, Malaysia, and Indonesia. This is no cause for the Philippines auto industry to rest on its laurels however: Thailand's auto industry posted 13.3% growth while Myanmar had more than 90% gains.
2017 was also a growth year for the Philippines' Insurance Industry as a whole (Life, Non-Life, MBA), posting a growth of 21.88 percent according to the National Insurance Commission, as of September 2017. It posted a net income of 27,855 in 2017, which is higher than the 22,853.9 posted in 2016.
The Life Insurance Sector posted a growth of 31.93 percent. Total net income for the sector was at 21, 963.9 which was higher than 2016's 16,637.9.
The Non-Life Insurance Sector posted a loss of 20.87 percent. Total net income was 2,759.9 in 2017, lower than the 3,487.9 posted in 2016.
*(figures in millions of pesos)