MANILA, Philippines — The pre-need industry’s net income declined to P1.12 billion in the first quarter, even amid an increase in the number of life plans sold, the Insurance Commission (IC) said.
Latest data from IC showed that net income of the industry reached P1.12 billion from January to March, a percentage below the P1.13 billion in profit in the same period last year.
This, even as the premium income of the sector improved by 12 percent to P5.73 billion following the 53-percent jump in the total number of plans sold.
In aggregate, the industry sold 255,667 pre-need plans, 53 percent better than the 169,450 sold in the first quarter of 2022.
The bulk or 99 percent of pre-need plans were life plans, which also registered a 53 percent hike in the number of plans sold.
The remaining 204 were pension plans, which dropped 54 percent from the 445 sold the year prior. Education plans, however, soared 43 percent to 10 plans sold.
Further, the IC noted that investments in trust funds was flat at P122.14 billion while pre-need reserves only inched up by 2.91 percent to P114.87 billion.
As mandated by the pre-need code, pre-need providers keep a reserve to cover benefit payables.
Meanwhile, the IC said the difference between investment in trust funds and pre-need reserves declined by 22 percent to P7.26 billion from P9.34 billion in 2022.
With these, the industry saw its asset base just slightly increasing to P144.85 billion while liabilities increased three percent to P122 billion.
Similarly, total net worth went down by four percent to P22.85 billion.
Latest pre-need figures covered a total of 14 firms, lower than the 17 in 2022. Of the total, 12 are licensed and two are servicing companies.
St. Peter Life Plan Inc. sold the most number of life plans at 255,398 with a contract price of P12.88 billion. It recorded the largest net worth of P15.19 billion, but only earned P1.02 billion as of end-March.
PhilPlans First Inc. came in second in terms of life plans sold with 1,209 worth P203.52 million.
Cosmopolitan Climbs Life Plan Inc. issued 1,155 plans worth P53.97 million, and Trusteeship Plans Inc. signed off 388 valued at P15.45 million.
Six of the 14 firms which disclosed their financial status incurred a net loss in the first quarter.
These are PhilPlans First Inc. (P27.1 million), Caritas Financial Plans (P9.06 million), Ama Plans Inc. (P3.73 million), Diamond Memorial Care Plans Inc. (P1.14 million), Mercantile Care Plans Inc. (P460,000), and Evergreen Lifeplans Services Inc. (P80,000).
Only Caritas Financial Plans and PhilPlans sold pension plans in the three-month period, releasing 154 and 50 worth P20.09 million and P22.5 million, respectively.
The industry also sold education plans, via PhilPlans, with 10 valued at P5.24 million as face-to-face learning increased.