Home Top News Pre-need firms’ Q1 premium income down

Pre-need firms’ Q1 premium income down

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THE PRE-NEED INDUSTRY saw its premium income decrease by 2.15% year on year in the first quarter amid lower plans sold, data from the Insurance Commission (IC) showed.

The sector’s premium income went down to P5.61 billion at end-March from P5.73 billion in the same period last year, based on IC data released on Tuesday.

The report was based on the interim financial statements submitted by 17 companies, made up of 11 licensed pre-need firms, four with pending license applications, as well as two servicing companies.

The number of plans sold by pre-need firms declined by 35.71% to 166,286 in the first quarter from 258,677 a year prior.

This was mainly driven by the 35.75% drop in life plans sold in the period to 166,050 from 258,453.

On the other hand, pension plans sold increased by 4.41% to 213 from 204, while education plans more than doubled to 23 from 10.

Still, the pre-need industry’s combined net income surged by 191.01% to P3.25 billion in the first quarter from P1.12 billion a year ago, IC data showed. Only five out of the 17 firms included in the report posted net losses in the quarter.

Investments in trust funds grew by 6.53% year on year to P130.11 billion in the first quarter from P122.14 billion.

Pre-need reserves, which include benefit obligations or payables as mandated by the Pre-Need code, likewise rose by 4.52% to P120.07 billion from P114.87 billion.

As a result, the combined difference between trust funds and reserves per company stood at a P10.05-billion surplus at end-March, up by 38.3% from P7.26 billion a year prior.

Meanwhile, the industry’s total net worth increased by 15.48% year on year to P26.38 billion as of March from P22.85 billion, the IC report showed.

This was driven mainly by the 29.18% rise in retained earnings to P18.22 billion. However, capital stock dropped by 6.19% year on year to P3.5 billion.

On the other hand, the sector’s total assets rose by 5.47% year on year to P152.78 billion from P144.85 billion.

Total liabilities also went up by 3.6% to P126.4 billion from P122.01 billion.

Based on the IC data, in terms of premium income, St. Peter Life Plan, Inc. was the top performer with P5.23 billion as it sold a total of 163,726 plans with a total contract price of P9.5 billion in the first quarter.

This was followed by Philplans First, Inc., which recorded a premium income of P264.54 million in the period, selling 332 plans worth P15.22 million.

Rounding out the top three was Golden Future Life Plans, Inc., which posted a premium income of P52.01 million. It sold 186 plans with a contract price of P18.94 million in the first quarter.

Meanwhile, in terms of net income, St. Peter Life Plan also ranked first with P3.13 billion, followed by Philplans First with P55.01 million and Sunlife Financial Plans with P48.06 million. — A.M.C. Sy

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