The insurance industry’s bottom line climbed by over two-fifths to P31.7 billion as of end-September last year despite a slight decline in life insurers’ premiums.
The latest Insurance Commission (IC) data showed that total net income posted by the industry, covering 131 companies, grew by 41.3 percent in the first nine months of 2019 from P22.5 billion a year ago.
The net income of the 31 life insurance firms rose by 47.7 percent year-on-year to P24.2 billion, while that of the 65 nonlife companies increased by 42 percent to P3 billion. The 35 mutual benefit associations (MBAs) posted an increase of 14.3 percent to P4.5 billion in the same period.
End-September premiums of the life, nonlife and MBA sectors totaled P224.9 billion, up 2.8 percent from P218.9 billion a year ago.
IC data showed that life insurance firms’ premiums from January to September 2019 declined 1.2 percent year-on-year to P172 billion, mainly due to a 4.6-percent drop to P124.1 billion of variable life premiums, especially single premiums, which fell 40.1 percent to P35.9 billion.
Traditional life premiums increased 8.9 percent year-on-year to P47.9 billion, despite an 8.3-percent contraction also in single premiums to P2.9 billion.
Among life insurers, new business annual premium equivalent also rose 4.3 percent year-on-year to P41.2 billion as of September.
As for nonlife firms, net premiums written grew 19.5 percent year-on-year to P44 billion.
MBAs enjoyed a 12.3-percent year-on-year growth in contributions/premiums to P8.9 billion during the same nine-month period.
Meanwhile, total industry benefit payments to customers during the first nine months of last year rose 3.3 percent to P78.1 billion from P75.7 billion a year ago. INQ