IC reports 76% increase in H1 net income

MANILA, Philippines - The insurance industry posted a 76.52 percent growth in net income in the first half of the year, led by increases in the capital gains and commissions earned by the life insurance sector, the Insurance Commission reported on Thursday.

Based on preliminary data submitted by life and non-life insurance companies to the IC, the country’s insurance industry recorded a total net income of P19.17 billion as of June 30 this year, higher by 76.52 percent from the P10.86 billion posted in the same period in 2015.

Insurance commissioner Emmanuel Dooc said the growth was driven by the life insurance sector whose net income increased 68.73 percent during the first half to P15.27 billion from P9.05 billion last year.

“This increase can be attributed to the significant increase in capital gains, as well as increase in the commissions earned and other miscellaneous income of some insurance companies. The same can also be attributed to the decline in underwriting expense of some companies,” Dooc said in a statement.

The non-life sector’s net income during the first half grew at a slower pace at 18.23 percent to P2.14 billion from P1.81 billion in 2015.

On the other hand, the total premium income of the insurance industry during the first six months of the year fell 9.12 percent to P105.52 billion from the P116.11 billion recorded in the same period last year.

“Based on the submission of the industry players, the decline in the total premium was mainly due to the lower sales performance by the life insurance sector. In particular, there was a significant drop in the premium production in variable life insurance products of the major players in the life insurance sector,” Dooc said.

The life insurance sector posted a 16.83 percent decline in premium income from P98.83 billion to P89.20 billion during the January to June period, while premium income of the non-life sector increased 13.95 percent to P19.69 billion from P17.28 billion.