Philippines’ pre-need industry premiums surge 7.3% YoY in 2023

The industry witnessed a 385% rise in net income.

The Philippines’ total premium income collected by pre-need companies reached ₱22.7b by the end of 2023, marking a 7.3% year-on-year (YoY), data from the Insurance Commission (IC) showed.

Net income in the pre-need industry surged to ₱2.1b in 2023, a remarkable 385% rise from 2022. This significant increase was attributed to higher interest income earned from trust funds, mandated by law for paying pre-need benefits.

The surplus in trust funds of pre-need companies also grew year-on-year, indicating improved capability to fulfil pre-need benefits obligations. As of end-2023, investment in trust funds amounted to ₱128b, surpassing pre-need reserves by ₱5.7b.

ALSO READ: The Philippines’ pre-need industry swells 8.2% YoY in Q3

In terms of financial stability, the total net worth of the pre-need industry reached ₱23.2b, reflecting an 11.2% YoY. Nine pre-need companies reported net worth increases, with one company seeing a notable 32.4% YoY rise.

Data from the IC were compiled from the financial submissions of sixteen pre-need companies, excluding Caritas Financial Plans, Inc., which underwent conservatorship in July 2023.