Insurance sector’s assets breach P1T mark

MANILA, Philippines–The assets of the insurance industry in the Philippines hit the P1-trillion mark for the first time in end-September.

This, according to the Insurance Commission, reflects how the sector is becoming an “important pillar” of the economy.

Data released by the commission on Tuesday showed that as of end-September this year, the industry’s total assets grew by 21.97 percent to P1.043 trillion from P855.2 billion in the same nine-month period last year.

Insurance Commissioner Emmanuel F. Dooc noted that the assets of the insurance industry were now equivalent to one-tenth of the assets of the domestic banking industry, making it an important contributor to the country’s growth.

The higher asset base means the industry has bigger resources and better capability to assume its liabilities, Dooc said.

In the first nine months of 2014, total liabilities rose by 17.74 percent—slower than the increase in assets—to P806.4 billion from P684.9 billion last year.

The total net worth of the 99 insurance companies operating in the country jumped by 38.96 percent to P236.7 billion as of end-September from last year’s P170.3 billion.

Total paid-up capital went up by 21.22 percent to P39.49 billion at end-September, from P32.58 billion last year.

Dooc attributed the rise in the industry’s paid-up capital to the strict implementation of the capital build-up program, which required a minimum capital of P250 million per company.

Dooc said the insurance industry also contributed to the development of the capital market, as the bulk of its investments were poured into government securities as mandated by the Insurance Code.

Of the P799.4 billion in cumulative investments made by insurance firms as of end-September, more than half or P417.8 billion was invested in bonds—P378.8 billion in government bonds and P39.07 billion in corporate bonds.