Understanding

Persistency Listening. Understanding. Delivering.

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STUDY PERIOD: 12 month period immediately prior to the date of persistency computation
Persistency Cut-off: February 29, 2020
Study Period: March 1, 2019 to February 29, 2020 (Persistency Rate is computed only every month-end)

API Issued ABAB(+,&')'$,*#-(.1$?=@@(8#C,41D,((E@%&($C,(F"D"*#,(%@($C,(-,"&G

• All new businesses within the study period
• Covers all UL Regular and Limited-Pay plans H%?,*4(:04"$, 8$14-(+,&)%4 5I#D14,4(H%*$C
• Covers all Traditional Products
• Excludes all UL Single-Pay Plans R4$(40.#FE HIEIHPEN#S#EIFEIHPHP EIEIHPEN#S#EIFEIHPEN
• Excludes all Accident and Health Plans and
• Critical Illness Stand Alone D%'0(40.#HN FIEIHPEN#:#HIHTIHPHP HIEIHPEN#:#HIHTIHPEN

API Endorsements Q40=,#FE UIEIHPEN#:#FIFEIHPHP FIEIHPEN#:#FIFEIHPEN

• Increase or decrease in premiums

!/0*"#FP JIEIHPEN#:#UIFPIHPHP UIEIHPEN#:#UIFPIHPEN
• Cancelled and surrendered plans are
reflected as negative endorsements Q4.#FE VIEIHPEN#:#JIFEIHPHP JIEIHPEN#:#JIFEIHPEN

API Reinstatements R($%#FP WIEIHPEN#:#VIFPIHPHP VIEIHPEN#:##VIFPIHPEN

• First-year lapsed plans that were reinstated

R(".#FE TIEIHPEN#:#WIFEIHPHP WIEIHPEN#:#WIFEIHPEN
during the study period
• Any reinstatements for plans that were lapsed !(8()+#FE NIEIHPEN#:#TIFEIHPHP TIEIHPEN#:#TIFPIHPEN
after 13 months (lapsed after paying 2 annual
premiums / 3 semi-annual premiums / 5 quarterly @%/+%9'%0#FP EPIEIHPEN#:#NIFPIHPHP NIEIHPEN#:#NIFPIHPEN
premiums / 13 monthly premiums)
will be excluded in the formula X=+1'%0#FE EEIEIHPEN#:#EPIFEIHPHP EPIEIHPEN#:#EPIFEIHPEN

API Lapse Y13%9'%0#FP EHIEIHPEN#:#EEIFPIHPHP EEIEIHPEN#:#EEIFPIHPEN

• First-year plans that were lapsed during the study period Z%=%9'%0#FE EIEIHPHP#:#EHIFEIHPHP EHIEIHPEN#:EHIFEIHPEN
• First-year plans that are under unit-cancellation shall
be tagged as lapsed and hence will be included * Agents who adopt orphans will not be subject to persistency risk.
in the formula

Factors in Persistency Computation

API Issued + API Endorsements + API FY Reinstatements - API FY Lapse

API Issued + API FY Endorsements

Sample Computation 920,000 + 100,000 + 465,000 – 550,000

API Issued 920,000 920,000 + 100,000
API Endorsement 100,000
935,000
API Reinstatement 465,000
API Lapse 550,000 1,020,000
.91667 -> 91%

www.prulifeuk.com.ph Pru Life UK - Official @PruLifeUK @PruLifeUK Pru Life UK

Established in 1996, Pru Life UK is the pioneer of insuravest, or investment-linked life insurance products, in the Philippines and is one of the first life insurance companies approved to distribute US
dollar-denominated investment-linked life insurance policies in the country. Since its establishment, Pru Life UK has expanded its reach to over 190 branches in the Philippines, with the biggest life agency force
of more than 32,000 licensed agents. The company is also one of the country’s top three life insurers based on the Insurance Commission’s 2019 Q3 rankings in terms of new business annual premium equivalent
and total premium income. Pru Life UK is headquartered in Uptown Bonifacio, Taguig City. Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. of the United States, Prudential Assurance
Company (a subsidiary of M&G plc, a company incorporated in the United Kingdom), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all
Philippine-registered companies). Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans. For more information: www.prulifeuk.com.ph
Understanding
Persistency Listening. Understanding. Delivering.

Powered by: Agency Support – Business Quality

Definition of Terms (as it relates to Persistency)

API Annualized Premium Income

Persistency Measure of the quality of business that was sold by an agent

PAA Plus Low Premium and PAA Plus Regular including all its packaged
Regular Pay UL Plans
variants

Limited Pay UL Plans PRULink Exact Protector Low Premium and Regular Premium, PRULink
Elite Protector 5,7,10, 15 Pay and all its packaged variants

Traditional Plans Pru Life, Pru Advance, Pru Term 15, Pru Life Your Term

Accident and Health Personal Accident (stand alone), Pru Wellness, Pru Shield

Single Pay Plans PIA Plus and Pru Millionaire. Top Up premiums including VL Rider are
therefore excluded in the persistency computation.

Critical Illness Stand

Alone Life Care Advance, Life Care Plus and Multiple Life Care

A change in the premium or benefit level as a result of a coverage

Endorsements
increase / decrease or premium increase / decrease

Cancelled Plans Plans that were cancelled by the policyowner within cooling-off period
or beyond cooling-off for as long as it was cancelled on the first year

Surrendered Plans Plans that were surrendered by the policyowner within first year

A process of putting a lapsed policy back into force via premium

Reinstatement updating (paying back all missed premiums and interest) or redating
(adjusting the policy effectivity date forward)

Lapse A first-year policy where premiums are unpaid beyond the grace period

www.prulifeuk.com.ph Pru Life UK - Official @PruLifeUK @PruLifeUK Pru Life UK

Established in 1996, Pru Life UK is the pioneer of insuravest, or investment-linked life insurance products, in the Philippines and is one of the first life insurance companies approved to distribute US
dollar-denominated investment-linked life insurance policies in the country. Since its establishment, Pru Life UK has expanded its reach to over 190 branches in the Philippines, with the biggest life agency force
of more than 32,000 licensed agents. The company is also one of the country’s top three life insurers based on the Insurance Commission’s 2019 Q3 rankings in terms of new business annual premium equivalent
and total premium income. Pru Life UK is headquartered in Uptown Bonifacio, Taguig City. Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. of the United States, Prudential Assurance
Company (a subsidiary of M&G plc, a company incorporated in the United Kingdom), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all
Philippine-registered companies). Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans. For more information: www.prulifeuk.com.ph