POLICYHOLDERS of NTUC Income can expect a surprise bonus this year to commemorate its 40th anniversary. Yesterday, its chief executive Tan Suee Chieh told The Straits Times that it is likely to do 'something special' for its customers to mark the anniversary.

Details will be announced when the insurance cooperative posts its investment performance next month or in April.

Besides the good news for its customers, last year's stellar sales performance also gives the insurer plenty to cheer about.

Income's weighted life insurance new business premiums grew to $275 million last year, up 7 per cent from $256 million in 2008. In comparison, the industry contracted by an estimated 14 per cent last year.

The Straits Times understands from sources that Income's performance has likely propelled it to the top position from fourth in 2007. This is on the basis that local insurer Great Eastern and its wholly owned subsidiary Overseas Assurance Corp (OAC) are considered as separate entities.

Based on its weighted new premiums, Income estimated its market share to be 18.5 per cent last year. This is up from 14.8 per cent in 2008, 13.3 per cent in 2007 and 10.2 per cent in 2006. Industry figures will be released by the Life Insurance Association (LIA) today.

Mr Tan declined to comment on how Income has fared against the other life insurers and the LIA keeps such league table information confidential.

In terms of weighted new premiums generated here, Income's figures are above Great Eastern Life's $270 million and Prudential's $265 million, according to sources. If OAC's figures were included, Great Eastern Group's weighted new premiums amount to $330 million.

The weighted premium measure is used by insurers here to benchmark performance and it takes into account just 10 per cent of a single premium and all of a year's premiums for annual premium plans.

Three years ago, when NTUC Income's Mr Tan took over the cooperative, he declared his ambition to make the firm Singapore's top insurer by 2009.

Last year, Income's single premium income grew 23 per cent to $1.38 billion while annual premiums fell to $137.8 million, from $143.8 million.

The cooperative also did well on other fronts last year. Its premium revenue - which included new and existing businesses - hit nearly $3 billion.

Marking a milestone in Income's 40-year history, its premium revenue rose by 12.6 per cent to $2.95 billion last year, from $2.62 billion previously. It had taken 29 years to achieve its first $1 billion in 1999 and another six years to reach the $2 billion mark in 2005.

Mr Tan attributed the cooperative's success to the change in culture at Income, which now places greater emphasis on a more professional approach to managing the business.

'I'm pleased with the progress we're making in terms of the performance and in terms of our culture change to transform Income to meet the evolving needs of our customers much better,' he said.

Income also said yesterday that its motor insurance business was back in profit, with gross premiums maintained at $236 million for last year. Its market share declined to 22 per cent from 26 per cent but it believes it remains the largest motor insurer.

The firm has also made huge strides selling via banking channels, also known as bancassurance. Last year, it secured sales of $245 million in single premium sales through banks such as DBS, United Overseas Bank and Citibank.

This was a big jump from the $8 million in sales achieved in 2008 when it first started selling via banks.

Last year, Income sold $34.3 million of its products via the financial advisers market, as part of its multi-channel strategy.

Mr Tan expects continual growth in all sectors of its business this year: 'We will have added focus on operational excellence and creating the right customer experience. We want to make NTUC Income the best insurer. That means making it a social enterprise of distinction, and a Singapore icon.'