THE PHILIPPINE insurance industry saw its combined premiums increase by 14.41% year on year in the first quarter, driven by both the life and nonlife sectors.
The combined premiums of life and nonlife insurers and mutual benefit associations (MBA) climbed to P124.17 billion in the three months ended March from P108.53 billion a year prior, according to data posted on the Insurance Commission’s (IC) website based on the submissions of 127 out of 129 licensed companies.
This led to a 7.09% increase in the industry’s net income to P15.3 billion from P14.29 billion. Its net worth also rose by 8.6% year on year to P497.23 billion.
Total paid-up capital and guaranty fund went up by 1.82% to P86.21 billion.
The industry’s combined assets expanded by 4.13% to P2.48 trillion at end-March from P2.38 trillion a year prior. Of this, invested assets were at P2.19 trillion, up by 3.44% from P2.12 trillion.
Liabilities also increased by 3.06% year on year to P1.98 trillion.
Meanwhile, benefit payouts or losses incurred inched down to P38.86 billion from P39.25 billion.
Insurance penetration — or premium volume as a share of gross domestic product (GDP), which shows the contribution of the industry to the economy — inched up to 1.89% as of March from 1.78% a year prior.
Insurance density — or the amount of premium per capita, which reflects the average spending of each individual on insurance — increased by 13.4% to P1,094.94 from P965.56.
LIFE INSURANCEBroken down, the life insurance industry’s premium income rose by 13.96% year on year to P99.9 billion in the first quarter from P87.66 billion, according to IC data based on the submissions of 32 of 33 licensed companies.
The bulk of the total were variable life premiums, which grew by 22.78% to P67.6 billion in the period.
Meanwhile, traditional life premiums slipped by 0.93% to P32.3 billion. By line of business, ordinary, accidental, and health premiums decreased by 2.07%, 19.38%, and 10.55% to P18.11 billion, P608.1 million, and P5.29 billion, respectively, while group and industrial premiums increased by 11.43% to P8.29 billion.
Life insurers’ new business annual premium equivalent increased by 12.92% to P18.86 billion in the first quarter from P16.71 billion.
The sector’s net income also rose by 12.22% to P10.83 billion from P9.65 billion a year ago, while total net worth went up by 10% to P290.05 billion.
Total assets rose by 3.58% to P1.93 trillion as of end-March, with invested assets climbing by 3.17% to P1.86 trillion.
Liabilities also increased by 2.52% to P1.64 trillion.
The life sector’s total paid-up capital with available cash assets inched up by 1% to P35.26 billion as of March.
Meanwhile, total life benefit payments decreased by 7.24% to P28.95 billion in the period.
NONLIFE INSURANCEFor its part, the nonlife insurance sector’s total premiums earned rose by 19.19% year on year to P18.8 billion in the first quarter from P15.78 billion a year ago, IC data based on the submissions of 56 out of 57 licensed companies.
Net premiums written increased by 19.35% to P20.27 billion in the period, while gross premiums written went up by 19.13% to P33.6 billion.
By line of business, motor insurance was the biggest contributor to the sector’s net premiums written with P7.97 billion, up by 11.1% year on year. This was followed by fire with P3.81 billion (up 21.91%). Rounding out the top three was other casualty policies with P2.32 billion (up 23.8%).
The nonlife sector’s net income increased by 14.63% to P2.89 billion in the first quarter from P2.52 billion a year prior. Total net worth went up by 6.3% to P139.87 billion.
Its combined assets climbed by 4.88% to P381.66 billion as of March. Invested assets went up by 4.95% year on year to P187.29 billion.
Total liabilities also rose by 4.08% to P241.79 billion.
The sector’s paid-up capital went up by 2.35% to P49.66 billion at end-March.
Meanwhile, total losses incurred rose by 27.1% to P7.9 billion from P6.23 billion.
MUTUAL BENEFIT ASSOCIATIONSLastly, the total contributions or premiums of MBAs rose by 2.89% year on year to P3.99 billion in the three months ended March from P3.88 billion, IC data from the submissions of all 39 licensed companies showed.
The sector’s combined assets increased by 9.04% to P166.38 billion in the first quarter from P152.53 billion a year ago, with total invested assets rising by 5.07% to P146.33 billion.
Total liabilities also rose by 10.08% to P99.06 billion as of March.
MBAs’ combined fund balance grew by 7.54% to P67.32 billion. Total guaranty fund also increased by 4.02% to P1.29 billion.
Meanwhile, total benefit payments and expenses went up by 9.83% to P1.98 billion in the first quarter.
MBAs’ net surplus decreased by 25.21% to P1.59 billion in the period from P2.12 billion a year ago. — Aaron Michael C. Sy