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Insurers book higher premium income

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THE INSURANCE INDUSTRY saw its premium income rise by 10.86% in the first quarter, driven mainly by the life sector, data from the regulator showed.

The industry booked combined premiums of P108.529 billion in the January-to-March period, higher than P97.901 billion in the same period last year, according to data posted on the Insurance Commission’s (IC) website on Monday.

The reports were based on submissions made by 129 out of 132 licensed life and nonlife insurers and mutual benefit associations (MBAs).

As a result, the insurance sector’s combined net income surged by 44.98% to P14.29 billion in the first quarter from P9.86 billion a year prior.

The industry’s assets grew by 7.09% to P2.38 trillion from P2.22 trillion, with total invested assets rising by 10.87% to P2.12 trillion.

Meanwhile, its total net worth declined by 2.95% year on year to P457.85 billion from P471.77 billion.

Their combined paid-up capital and guaranty fund grew by 5.77% to P86.18 billion last quarter from the revised P81.38 billion in the same period in 2023.

Total liabilities rose by 9.8% to P1.92 trillion from P1.75 trillion.

Benefits paid out by the industry increased by 12.06% year on year to P39.25 billion in the first quarter from P35.03 billion.

The IC said insurance density, or the amount of premium per capita or average spending of each individual on insurance, rose by 10.66% to P965.56 in the first quarter from P872.56.

Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, inched up to 1.78% from 1.75%.

LIFE INSURERSBroken down, the life insurance sector’s total premium income rose by 12.04% year on year to P87.66 billion in the first quarter from P78.24 billion, data based on submissions from 33 out of 34 licensed companies showed.

The growth was driven mainly by variable life premiums, which grew by 6.8% to P55.06 billion. Traditional life premiums also rose by 22.17% to P32.6 billion.

New business annual premium equivalent went up by 7.99% to P16.71 billion.

The life insurance sector’s consolidated net income surged by 48.52% to P9.65 billion in the first quarter from P6.495 billion a year prior.

Total assets went up by 8.91% to P1.86 trillion as of March, while liabilities rose by 12.07% to P1.6 trillion.

Invested assets increased by 10.15% to P1.8 trillion from P1.64 trillion.

Meanwhile, the sector’s total net worth went down by 7.01% to P263.67 billion from P283.55 billion.

Total paid-up capital, which includes licensed servicing companies, grew by 11.16% to P34.905 billion.

Benefit payouts rose by 20.18% year on year to P31.21 billion last quarter.

NONLIFE INSURERS, MBAOn the other hand, total net premiums written by nonlife insurance companies rose by 6.98% to P16.99 billion in the first quarter from P15.88 billion in the same period last year, based on data submitted by 55 out of 57 licensed firms.

The motor sector was the biggest contributor in terms of line of business with P7.17 billion in net premiums written in the period, rising by 10.87% year on year. Fire followed with P3.12 billion, up by 9.13% from a year prior.

Meanwhile, total premiums earned dropped by 1.34% to P15.78 billion from P15.99 billion, while gross premiums written climbed by 7.76% to P28.2 billion.

The nonlife insurance sector’s combined net profit declined by 4.08% year on year to P6.23 billion from P6.55 billion.

Its total assets dropped by 2.48% to P363.89 billion at end-March and total liabilities decreased by 3.57% to P232.31 billion.

Nonlife insurers’ overall net worth slipped by 0.5% to P131.58 billion.

Meanwhile, the sector’s total paid-up capital grew 2.42% year on year to P50.03 billion from P48.85 billion.

Total invested assets increased by 18.49% to P178.46 billion, while losses incurred by the sector declined by 4.83% to P6.23 billion.

Lastly, MBAs recorded total contributions or premiums worth P3.88 billion at end-March, up by 2.62% year on year, based on submissions from all 41 licensed companies, IC data showed.

The sector’s total assets grew by 10.53% to P152.58 billion, with invested assets rising by 11.12% to P139.27 billion.

Total fund balance climbed by 11.82% to P62.596 billion. MBAs’ combined guaranty fund likewise inched up by 0.83% to P1.24 billion.

The sector recorded an aggregate net surplus of P2.12 billion, surging by 189.8% from the year-ago level.

Meanwhile, the sector’s benefit payments and expenses declined by 27.99% to P1.81 billion.

HEALTH MAINTENANCE ORGANIZATIONSMeanwhile, the health maintenance organization (HMO) industry turned a profit in the first quarter on the back of higher revenues, even amid a rise in benefit payouts, separate IC data released on Monday showed.

“Despite the big increase in the payout of healthcare benefits, which is considered as expenses in the accounting records of HMOs, HMOs returned to profitability in the first quarter due to higher revenues,” the IC said in a statement on Monday.

The sector booked a net income of P6.8 million in the January-to-March period versus the P319-million net loss incurred in the same period last year, based on data from the interim financial statements submitted by all 24 licensed HMOs to the IC. This was also better than the P2.12-billion net loss recorded by the sector in 2023.

Total revenues grew by 20.09% year on year to P18.68 billion in the first quarter from P15.55 billion.

The IC said this was driven by a 17.44% increase in membership fee collections to P17.77 billion.

Meanwhile, healthcare benefits and claims paid out by HMOs rose by 17.3% to P15.05 billion at end-March from P12.83 billion a year prior.

The HMO industry saw its total assets rise by 10.07% to P71.31 billion at end-March from P64.79 billion a year prior, with total invested assets increasing by 4.47% to P18.49 billion.

Total liabilities likewise grew by 16.11% year on year to P61.49 billion.

Meanwhile, the sector’s total equity decreased by 16.96% to P9.82 billion as of March.

Its total capital stock grew by 43.9% year on year to P8.14 billion from P5.66 billion. — A.M.C. Sy

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