Insurance industry books lower Q2 premiums
THE INSURANCE industry’s combined premiums went down by 0.49% year on year in the second quarter, data from the Insurance Commission (IC) showed.
Data based on submissions from 128 out of 136 licensed life and nonlife insurers, as well as mutual benefit associations (MBAs), showed their combined premiums stood at P187.76 billion in the three months ending June, down from P188.69 billion in the same period last year.
Meanwhile, the industry’s total assets and net worth went up by 10.40% to P2.23 trillion and 18.83% to P452.05 billion, respectively.
Total paid-up capital and guaranty fund likewise rose by 7.82% to P82.79 billion at end-June.
Total liabilities grew by 8.45% to P1.78 trillion. Invested assets also went up by 14.94% to P1.98 trillion.
However, the industry saw its benefit payouts go down by 5.04% year on year to P61.77 billion in the second quarter.
Meanwhile, the three sectors’ combined net income rose by 4.23% to P22.39 billion.
Insurance density, or the amount of premium per capita or the average spending of each individual on insurance, slipped by 1.73% to P1,677.50 per individual.
On the other hand, insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, inched up to 1.63% in the second quarter from the revised 1.61% a year prior.
LIFE INSURERSBroken down, the life insurance sector’s premium income declined by 2.25% year on year to P149.47 billion at end-June, IC data based on submissions from 34 out of 35 licensed companies showed.
The decline was mainly due to a 13.58% decrease in variable life premiums to P98.64 billion, the data showed.
Meanwhile, traditional life premiums increased by 31.10% to P50.83 billion.
The sector’s new business annual premium equivalent also rose 9.62% to P29.5 billion, IC data showed.
The total net income of life insurers went up by 2.58% year on year to P16.37 billion in the second quarter.
Total assets rose by 12.53% to P1.73 trillion. Total liabilities also grew by 9.57% year on year to P1.46 trillion.
Invested assets likewise climbed by 14.85% to P1.68 trillion.
Life insurers’ combined net worth rose by 31.68% year on year to P271.05 billion.
Total paid-up capital likewise grew by 22.66% to P33.21 billion, while total benefit payouts declined by 6.99% to P46.97%.
NONLIFE INSURERSMeanwhile, total net premiums written by nonlife insurance companies grew by 5.39% to P30.7 billion in the second quarter, data from 54 out of 60 licensed firms showed.
Total premiums earned and gross premiums rose by 7.56% to P28.7 billion, and 26.42% to P60.02 billion, respectively.
The sector’s net income also went up by 32.67% to P3.64 billion at end-June.
Total assets and total liabilities inched up by 1.33% and 1.45% to P355.67 billion and P232.11 billion, respectively.
The overall net worth of nonlife companies also went up by 1.11% to P123.56 billion.
Meanwhile, paid-up capital inched down by 0.25% to P48.36 billion as of end-June.
Total invested assets increased by 19.86% to P168.09 billion, while losses incurred rose 9.52% to P11.3 billion.
MBAsLastly, MBAs recorded total contributions or premiums rose by 14.14% year on year to P7.59 billion in the second quarter, data from submissions from 40 of 41 licensed MBAs showed.
The sector’s total assets grew by 9.77% to P141.04 billion, while total liabilities climbed by 9.82% to P83.59 billion.
Invested assets likewise went up by 10.06% to P127.77 billion.
Total fund balance rose by 9.68% to P57.45 billion.
Meanwhile, MBAs’ combined guaranty fund inched down by 0.96% to P1.22 billion.
The sector’s aggregate net surplus also fell by 14.45% to P2.37 billion in June from P2.78 billion in the same period last year.
Benefit payments and expenses likewise slipped by 17.31% to P3.49 billion. — A.M.C. Sy
