As of the conclusion of the third quarter of last year, the insurance sector’s net income had decreased by over 7% to P35 billion due to a dip in the life segment.
According to the Insurance Commission’s (IC) most recent figures, the industry’s net income from January through September 2022 decreased by 6.67 percent to P35 billion from P37.5 billion during the same period in 2021.
However, insurance density, or the average amount a person spends on insurance, increased from P1,704 to P2,525 by over 50%. According to IC commissioner Dennis Funa, “the upward trend in insurance density attests to the increased confidence of the people in the financial security that insurance provides.”
Despite the pandemic‘s economic woes, the growth “inspires optimism as we continue to move forward,” he said. When broken down, the life insurance segment’s net income decreased by 12.67% from P29.88 billion in 2021 to P26.1 billion.
The fall in total premium revenue, notably in single premiums from variable life insurance products, was substantially to blame for this.
Seven out of the top 10 life insurance companies reported a decrease in investments, which decreased by 4.77 percent to P1.46 trillion. Assets decreased by 3.3 percent to P1.54 trillion. According to the IC, benefit payments increased by a pitiful 0.53 percent to P78.04 billion.
However, the net income for the non-life insurance category increased by about 10%, from P4.34 billion to P4.77 billion. Fire insurance, auto, accident, and aviation lines all saw increases in net premiums issued. During that time, only the health insurance line experienced a dip.
Assets for the non-life segment increased by 20 percent to P353.13 billion, with investments for the non-life segment growing by 9.34 percent to P143.17 billion. These investments were primarily made in debt securities in the public and private sectors, time deposits, investment real estate, mutual funds, and real estate investment trusts, among other things.
The IC also noted that MBAs boosted their premiums by 8% to P10.7 billion, while their expenses decreased by less than a percentage to P7.26 billion. The segment’s net surplus increased overall by 26% to P4.14 billion.
While total benefits paid were nearly steady at P101.05 billion in the third quarter, the combined total assets of the three segments improved a little to P2.03 trillion. The 132 licensed insurers and MBAs submitted 126 of the data for the third quarter’s insurance statistics.