Pre-need industry posts lower premium income at end-Sept.
THE PRE-NEED INDUSTRY saw its premium income decline by 2.5% year on year as of the third quarter as players sold fewer plans, data from the Insurance Commission (IC) showed.
The sector’s premium income stood at P16.287 billion at end-September, down from P16.704 billion in the same period last year, IC data based on the submission of 16 licensed pre-need companies showed.
Still, the industry’s net income jumped by 347.52% to P8.05 billion from P1.799 billion, with four out of the 16 companies posting a net loss in the period and two having no total income data provided.
Plans sold by pre-need firms declined by 14.97% to 509,323 at end-September from 599,025 plans a year prior.
The drop was mainly due to the 15.02% decrease in life plans sold to 508,787.
On the other hand, sales of pension plans jumped by 80.74% year on year to 488, while education plans sold rose by 50% to 48.
Meanwhile, the industry’s investment in trust funds increased by 13.13% year on year to P140.54 billion, IC data showed.
Pre-need reserves, which include benefit obligations or payables as mandated by the Pre-Need Code, went up by 6.3% year on year to P126.64 billion in the period.
As a result, the difference between the combined trust funds and pre-need reserves of companies stood at a P13.9-billion surplus at end-September, 172.83% wider than the P5.095-billion surfeit a year prior, the IC’s report showed.
The pre-need industry’s combined total net worth rose by 43.33% to P31.03 billion from P21.65 billion, driven by the 67.02% increase in retained earnings to P20.61 billion.
Firms’ combined capital stock also inched up to P4 billion from P3.994 billion, while other net worth accounts went down to P5.26 billion from P5.47 billion.
On the other hand, the sector’s total assets increased by 11.35% to P164.64 billion in the first nine months from P147.86 billion in the same period last year.
Total liabilities likewise rose by 5.86% to P133.6 billion.
According to IC data, St. Peter Life Plan, Inc. recorded the highest premium income in the period at P16.05 billion, followed by Eternal Plans, Inc. with P97.69 million, and Cosmopolitan Climbs Life Plan, Inc. with P44.98 million.
In terms of sales, St. Peter Life Plan was also the top performer with 501,341 plans sold for a total contract price of P29.08 billion.
Cosmopolitan Climbs Life Plan placed second with 3,182 plans sold for a contract price of P167.85 million.
Rounding out the top three was Philplans First, Inc., which sold 1,893 plans with a total contract price of P300.92 million.
HMOMeanwhile, separate IC data released recently showed the health maintenance organization (HMO) industry posted a net income of P800.86 million at end-September, rebounding from the P2.15-billion net loss a year ago.
This was driven by a 22.5% increase in revenues to P59.65 billion, data based on the unaudited financial statements from 27 HMOs showed.
“This was mainly due to the 20.65% increase in membership fees collected by the industry in Q3 2024, which comprises 95.06% of the industry’s revenues,” the IC said.
Meanwhile, total expenses increased by 15.75% year on year, driven by a 14.05% increase in healthcare benefit and claims paid to P46.67 billion.
The sector’s combined assets also expanded by 18.42% to P75.87 billion as of September.
Total invested assets, which accounted for 27.16% of the industry’s total assets, increased by 11.57% year on year to P20.61 billion in the first nine months.
This came amid a 51.81% rise in cash equivalents and a 87.47% growth in investments in property and equipment.
Total liabilities climbed by 19.64% to P64.2 billion following a 33.98% increase in membership fee reserves.
Meanwhile, other reserves dropped to P1.68 billion from P8.52 billion, the IC said.
Total equity increased by 12.11% to P11.67 billion.
The sector’s combined capital stock, which includes share capital and subscribed share capital, rose by 30.46% to P2.09 billion.
However, it saw a 55.19% reduction in retained earnings to P1.98 billion. — A.M.C. Sy
