Insurance premiums rise 37% to P187 billion

MANILA, Philippines — Insurance premiums grew more than 37 percent to P187 billion in the second quarter as the economic reopening heightened demand for both life and non-life policies.

According to the Insurance Commission (IC), insurers in the Philippines posted a combined profit of P24.63 billion during the period, swelling by over 29 percent from P19.03 billion a year ago.

Further, the industry increased its investments by around 12 percent to P1.75 trillion, from P1.56 trillion. As such, assets maintained by life and non-life insurers rose by more than 11 percent to P1.98 trillion.

On the other hand, industry players also expanded the amount of benefits they released by nearly 47 percent to P64.94 billio, from P44.26 billion. The government placed Metro Manila and surrounding provinces under lockdown in April to contain a resurgence in infections.

IC Commissioner Dennis Funa said life and non-life firms, including mutual benefit associations (MBAs), showed their responsiveness to the pandemic by enlarging their benefits payout in the second quarter.

“The growth of the life and non-life insurers’ and MBAs’ aggregate premiums and contributions earned and their aggregate net income in the second quarter of 2021 are indicative of economic recovery amid the COVID-19 pandemic,” Funa said.

“Moreover, the year on year increase in benefits paid during the same quarter highlighted the responsiveness of our insurers and MBAs to the needs of the insuring public despite challenges posed by the COVID-19 pandemic,” he said.

Premiums sold by life insurers went up by almost 44 percent to P155.17 billion on increases in single premiums, first year and renewal premiums for traditional policies. The profit generated by their bracket expanded by a third to P19.03 billion.

For non-life insurers, net premiums written grew by 13 percent to P25.51 billion due to hikes in automotive policies, among others. However, their segment’s net income dipped by a little less than one percent to P3.33 billion.

MBAs increased their premium income by 19 percent to P6.46 billion, beefing up the fund balance they maintain by about 13 percent to P48.47 billion.

According to the IC, the figures were computed based on the submissions filed by 128 out of the 135 licensed insurers and MBAs in the Philippines.