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ANNUAL R E P O R T 2014
C O N T E N T S
About Prudential Assurance Company Singapore (pte) Limited (Prudential Singapore)
Business Review Financial Highlights Year in Review
Board of Directors
Management Executive Committee
A L W A Y S L I S T E N I N G
A L W A Y S
U N D E R S T A N D I N G
ABOUT PRUDENTIAL ASSURANCE COMPANY SINGAPORE (PTE) LIMITED (PRUDENTIAL SINGAPORE)
ALWAYS LISTENING ALWAYS UNDERSTANDING
Prudential Singapore, an indirect wholly-owned subsidiary of UK-based Prudential plc, is one of the top life insurance companies in Singapore.
Prudential Singapore, an indirect wholly-owned subsidiary of UK-based Prudential plc, is one of the top life insurance companies in Singapore. We have been serving the financial and protection needs of Singaporeans for 84 years. Our focus is to bring well-rounded financial solutions to customers through our multi-channel distribution network, with product offerings in Protection, Savings and Investment. We are one of the market leaders in Protection, Savings and Investment-linked plans with over S$27.8 billion funds under management as at 31 December 2014. In 2014, we were awarded an AA Rating by leading credit rating agency Standard & Poor’s.
For the last 11 consecutive years, we have been awarded the Gold Award in Reader’s Digest Trusted Brands. Since 2007, we have been conferred the People Developer Award by SPRING Singapore for our efforts in training and developing employees and in 2013 and 2014, we were presented with Asia’s Employer of the Year Brand Award by the Branding Institute and the World HRD Congress. Also in 2014, Prudential Singapore was awarded the NTUC Plaque of Commendation (Gold) Award and the Leading HR Practices in Quality Work-Life, Physical & Mental Well-Being Award.
A Y E A R O F
E X T R A O R D I N A R Y
S U C C E S S E S
It gives me great pleasure to share the strong performance that Prudential Singapore achieved in 2014: it was another record-breaking year with new business sales growing 5.4% to a record S$744 million and Regular Premium sales reaching S$603 million.
There are several factors for our success – the emphasis on innovation when developing products and services, our focus on staying relevant to our customers’ evolving needs, our competence in building on areas of growth and our consistent pursuit of success.
Our comprehensive suite of products effectively caters to our customers’ health, protection and investment needs. Our highly successful PRUshield product has been enhanced with a helpline called PRUhealthcare assist that is available at no additional cost to our PRUshield customers. Manned by a team of experienced medical professionals, this value-add service provides customers with pertinent information that can guide them in making good decisions about their medical and healthcare choices.
We stayed true to our aim of addressing the evolving needs of our customers and we continue to innovate with products and services that are accessible and relevant. With retirement needs becoming increasingly important, we launched PRUgolden income which is an endowment plan that caters to the retirement needs of Singaporeans by providing a regular stream of income while protecting against unforeseen circumstances.
The High Net Worth (HNW) segment remains an area of success and growth for us, with New Business Sales in 2014 that was 19.4% above 2013. We are proud of the comprehensive suite of Vantage plans that we have designed to specifically meet the needs of this segment of customers. HNW Protection products like PRUTerm Vantage and Crisis Care (PRUTerm Vantage), together with PRUselect Vantage products, led the growth. This year we introduced PRULife Vantage Achiever to offer high protection coverage so that customers’ loved ones are assured of greater financial security. Global provider of investment consulting services, Mercer Investments, continues to provide us with their investment expertise which benefits our PRUVantage customers.
We continue to be market leaders in the Investment-Linked Insurance Product (ILP) segment and we launched PRUselect this year, a regular premium plan that allows the investor to have access to investing in a widely diversified portfolio of funds. In partnership with Mercer Consulting, PRUselect offers customers a range of 4
A YEAR OF EXTRAORDINARY SUCCESSES
customised portfolios, based on different levels of return expectations, risk appetite and time horizon.
Our unique multi-channel distribution network continues to achieve success, with our Agency and our Partnerships Distribution channels delivering excellent performance again this year. Our agency force of almost 4000 financial consultants remains one of the largest and most productive in Singapore and we also continue to enjoy strong relationships with our strategic partners.
Corporate Social Responsibility remains at the heart of Prudential Singapore and this year, we continued our efforts in education, helping children, meeting the needs of the less fortunate and giving back to the local community. Our interactive programme, ChaChing Singapore School Tour was taken to children in community organisations this year. Art exhibition and awards programme, Prudential Eye Awards, was also brought to Singapore this year and as part of the programme, we presented the Prudential Singapore Young Artist Award to a talented local contemporary artist.
For the sixth consecutive year, we supported the Boys’ Brigade Share-a-Gift programme. Aside from the company’s cash sponsorship of the programme, our staff and financial consultants also participated by packing and delivering household hampers to the beneficiaries, and fulfilling the Christmas wishes of the less fortunate.
Prudential Singapore again supported sport through activities around golf, swimming and running. Prudential Causeway Trophy continued for the second year and in addition to the tournament this year, we held the Prudential Junior Causeway Trophy to give promising junior golfers the experience of a professional competition. Additionally, there were golf clinics to help junior golfers and the sponsorship of golf talent Quincy Quek. We also sponsored the Youth Golf Network which nurtures youths from all walks of life, in the sport.
To add to the excitement, we sponsored Prudential Singapore Swim Stars, a three-day swim festival which brought world-class swimming champions here for an exciting competition and conducted swim clinics for children. Finally, we continued to support the Standard Chartered Marathon Singapore which saw the participation of staff and members of our agency force. I would like to take this opportunity to express my gratitude for your continued support. Prudential Singapore consistently strives for excellence and we remain committed to effectively providing for your protection, savings and investment needs. Thank you.
Tomas Urbanec Chief Executive Officer
A L O O K B A C K A T
A N E X C E P T I O N A L
Y E A R
BUSINESS REVIEW FINANCIAL HIGHLIGHT
1 Annual Premium Equivalents (APEs) are calculated as the aggregate of regular new business amounts and one-tenth of single new business amount. New business premiums for regular premium products are shown on an annualised basis.
Annual Premium Equivalent New Business Premium1 Over 2013
Total Funds under Management Over 2013
Capital Adequacy Ratio 120 Minimum Regulatory Requirement
For the year 2014, Prudential Singapore continued to focus on staying relevant to customers’ evolving needs and adequately meeting them with innovative products and services. The company kept its finger on the pulse of changing market trends and continued to develop exceptional financial planning services that stood out in a highly competitive environment. Throughout the year, we provided well rounded financial solutions to serve the protection, savings and investment needs of Singaporeans with a suite of products that cover healthcare, wealth accumulation and protection, and retirement funding.
Our multi-channel distribution network, with a productive tied agency force and strong Bancassurance partnerships, provides us with extensive reach to a variety of customers. The Agency Distribution (AD) division and bancassurance channel Partnerships Distribution (PD) delivered outstanding results in the year. AD met and exceeded their goals while our PD channel maintained healthy relationships with our partners. We remained at the forefront of the industry because we were able to effectively serve our customers with a combination of professionalism and a focus on customer excellence.
MEDICAL HELPLINE TO ENHANCE SERVICE
As rising medical costs become an increasing concern for Singaporeans, Prudential Singapore launched PRUhealthcare assist, a helpline service that provides our PRUshield (Prudential Singapore’s Medisave-approved integrated medical insurance plan) customers with