The final quarter results, which pushed total sales over the full year to S$2.18bn, show that growth was driven by annual premiums of S$1.59bn, up an impressive 18% on the previous four quarter total.
Single premiums, by contrast fell 11% to S$586.2m, which was attributed to weak market sentiment and a more subdued economy.
The weighted figure is calculated by adding 10% of the Single Premium Index (SPI) to the Annual Premium Index (API), with adjustment for premium payment terms of less than 10 years.
Annual premiums rose a healthy 8%, from S$408.6m in the third quarter to S$441.4m in the fourth quarter, while single premiums declined by 9.6%, from S$153.7m to S$138.9m.
Tied agents continued to be the main channel of distribution for new business, contributing 59% of new business policies and 46% of new business funds invested in the four quarters to the end of December 2012.
Financial advisers handled 16% of sales, up 2% on the previous quarter figures, and in terms of policies accounted for 10% of the total.
Bank sales, while accounting for 35% of new weighted premiums, was only up 1% on the previous year, indicating that the upward trend had slowed.
In a statement, Tan Hak Leh, president of the LIA, said: “ Outlook for the life insurance industry in 2013 is that of tempered optimism, given that the Singapore economy is likely to grow at a slower pace.”
New Business Sales in Singapore,
four quarters of 2012 (Weighted Basis)
Jan – Dec 2012 Jan – Dec 2011 Change
- Single Premium S$586.2m S$655.1m -11%
- Annual Premium S$1.59bn S$1.36bn 18%
- Total S$2.2bn S$2.1bn 8%
Oct – Dec 2012 Oct – Dec 2011 Change
- Single Premium S$138.9m S$156.5m -11%
- Annual Premium S$441.4m S$386.4m 14%
- Total S$580.3m S$542.9m 7%