MANILA, Philippines—Pre-need firms swung to profitability as of end-September 2021, reversing 2020’s pandemic-induced losses, as sales of life plans jumped by almost half year-on-year.
The latest Insurance Commission (IC) data on Monday (Jan. 10) showed that 12 licensed pre-need players posted a total net income of P369.2 million during the first nine months of last year. In 2020, the sector recorded an end-September net loss of P2.3 billion.
The improved nine-month bottom line being sustained since the second quarter of 2021 came on the back of the 47.5-percent jump in number of plans that pre-need companies sold, to 414,496 in 2021 from 281,055 in 2020.
Sales of life plans alone climbed by a faster 47.9 percent to 413,487 during the nine-month period of 2021 from 279,659 in 2020.
Pension plans, however, saw end-September 2021 sales dip by 27.7 percent to 1,009 from 2020s 1,396.
Sought for comment, Insurance Commissioner Dennis Funa said: “I think the numbers are just going back to the pre-pandemic figures.”
As regulator, Funa said “the IC does not have information regarding market preference or demand.”
“However, we observed that the number of plans sold as of the third quarter of 2021 was still low compared to 2019,” the IC chief said.
IC data showed that from January to September 2019, pre-need sales reached 687,236 plans.
“Accordingly, the market may just be going back to its pre-pandemic state. Nevertheless, there indeed may be increased awareness of such plans because of the pandemic,” Funa said.
TSB