THE INSURANCE INDUSTRY saw its premium income grow by 14.48% at end-June, driven by the life insurance sector, latest data from the regulator showed.
The industry’s combined premium income stood at P214.94 billion in the first half, up from P187.76 billion in the same period last year, data posted on the Insurance Commission’s (IC) website showed.
The data were from submissions made by 126 out of 131 licensed life and nonlife insurers and mutual benefit associations (MBAs).
As a result, the insurance sector’s combined net income rose by 24.07% to P27.78 billion in the first semester from P22.39 billion a year ago.
The industry’s assets grew by 6.02% year on year to P2.38 trillion at end-June from P2.23 trillion, with total invested assets rising by 3.21% to P2.04 trillion from P1.98 trillion.
Total liabilities rose by 7.42% to P1.91 trillion from P1.78 trillion.
The industry’s net worth inched up by 0.48% to P454.24 billion from P452.05 billion.
Meanwhile, its combined paid-up capital and guaranty fund declined by 3.12% to P80.21 billion at end-June from P82.79 billion a year ago.
Benefits paid out by the industry increased by 24.12% year on year to P76.67 billion in the first half from P61.77 billion.
Insurance density, or the amount of premium per capita or average spending of each individual on insurance, rose by 14.37% to P1,907.19 in the first half from P1,667.50.
Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, went up to 1.71% from 1.63% previously.
LIFE INSURERSBroken down, the life insurance sector’s premium income rose by 16.5% year on year to P164.14 billion in the first half from P149.45 billion, IC data based on submissions of 31 out of 32 licensed companies showed.
The growth was driven mainly by variable life premiums, which rose by 14.75% year on year to P113.19 billion. Traditional life premiums also went up by 19.9% to P60.94 billion in the period.
New business annual premium equivalent climbed by 12.74% to P33.25 billion.
The sector also saw higher premiums across all lines of business, the data showed.
Life insurers’ combined net income rose by 21.62% to P33.25 billion in the first semester from P29.495 billion a year ago.
Total assets increased by 6.86% to P1.85 trillion as of June, while liabilities rose by 8.58% to P1.59 trillion.
Invested assets inched up by 2.47% to P1.8 trillion from P1.73 trillion.
Meanwhile, the sector’s total net worth went down by 2.4% to P264.53 billion from P271.05 billion.
Total paid-up capital with available cash assets also declined by 2.25% to P32.46 billion.
Life benefit payouts rose by 30.09% year on year to P61.11 billion at end-June.
NONLIFE INSURERSOn the other hand, total net premiums written by nonlife insurance companies rose by 7.14% to P32.89 billion in the first semester from P30.7 billion a year ago, based on data submitted by 52 out of 56 licensed firms.
The motor sector was the biggest contributor in terms of line of business with P13.82 billion in net premiums written in the period, rising by 8.42% year on year. Fire followed with P4.79 billion, although this inched down by 0.11% from a year prior.
Total premiums earned by the sector likewise went up by 7.11% year on year to P30.74 billion, while gross premiums written climbed by 9.03% to P59.68 billion.
The nonlife insurance sector’s combined net profit jumped by 36.78% year on year to P4.98 billion at end-June from P3.64 billion.
Its total assets inched up by 0.32% to P356.8 billion at end-June, while total liabilities decreased by 0.82% to P230.2 billion.
Losses incurred by the sector went up by 4.62% to P11.83 billion from P11.3 billion.
Nonlife insurers’ overall net worth went up by 2.46% to P126.599 billion.
Total invested assets increased by 4.01% to P174.83 billion from P168.09 billion.
Meanwhile, the sector’s total paid-up capital slipped by 3.92% year on year to P46.47 billion from P48.36 billion.
MBALastly, MBAs recorded total contributions or premiums worth P7.91 billion as of June, up by 4.27% year on year, IC data based on submissions from all 43 licensed companies showed.
The sector’s total assets grew by 9.99% to P155.13 billion, with invested assets rising by 12.05% to P143.16 billion.
Total fund balance climbed by 9.86% to P63.11 billion. MBAs’ combined guaranty fund likewise increased by 4.89% to P1.28 billion.
The sector recorded an aggregate net surplus of P2.89 billion, up by 21.6% from the year-ago level.
Combined benefit payments or expenses increased by 6.79% year on year to P3.73 billion as of June. — A.M.C. Sy
