Philippines insurance sector witnesses surge in premiums

Both its life and non-life sectors climbed 12.0% and 6.98%, respectively.

The premiums of Philippine life and non-life insurers both saw notable increases during the first quarter of the year (Q124), climbing to 12.0% and 6.98%, accordingly.

This was equivalent to a collection of $1.49b (P87.66b) in premiums by the life industry, and $0.29b (P16.99b) in premiums by the non-life sector.

The rise in life insurers’ premiums was driven by increases in both variable unit life (VUL) insurance policies and traditional life insurance, which saw gains of 6.8% and 22.17%, respectively.

Premiums for VUL policies amounted to $0.94b (P55.06b), whilst traditional life insurance premiums totalled $0.55b (P32.6b).

New business premium collections in the life industry also rose by 7.99% to $0.28b (P16.71b) from $0.26b (P15.47b) in 2023. Its total net income surged by 48.52% to $0.16b (P9.65b), compared to $0.11b (P6.50b) last year. Total benefit payments increased by 20.18% to $0.53b (P31.21b).

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Total assets in the life insurance sector grew by 8.91% to $31.62b (P1.86 trillion) as of the first quarter of 2024. 

Total liabilities increased by 12.07%, whilst total net worth declined due to a 48.65% decrease in reserve accounts and a 51.89% decrease in remeasurement gains on retirement pension assets. 

Paid-up capital and total invested assets rose by 11.16% and 10.15%, respectively.

The non-life insurance sector saw a 10.87% increase in motor vehicle insurance premiums and a 9.13% increase in fire insurance premiums. 

Total losses incurred by the non-life sector declined by 4.83% to $0.11b (P6.23b), reflecting fewer claims paid. 

However, total net income decreased by 4.08% to $0.04b (P2.52b), down from $0.04b (P2.63b) last year, due to a 1.34% drop in total premiums earned.

($1.00 = P58.11)