Insurers earn less in Q1

MANILA, Philippines — The insurance industry saw its net income drop by 16 percent to nearly P10 billion in the first quarter amid declines in both life and non-life segments.

Latest data released by the Insurance Commission (IC) showed that the insurance industry’s net income   declined by 16 percent to P9.92 billion in the first quarter  from the P11.85 billion in the same period last year.

In particular, the life insurance segment registered a 20.85 percent decrease in net income to P7.46 billion from P9.42 billion a year ago.

This was largely due to the decline in total premium income, particularly in single premiums in both variable and traditional life insurance products.

The IC said there was also nearly 30 percent increase in benefit payments to P25.7 billion. The life segment also recorded a higher number of policies and insured lives during the period.

Investments also grew by 10 percent to P1.59 trillion, while assets rose by 11 percent to P1.65 trillion.

Similarly, the non-life insurance segment’s net income dipped almost 10 percent to P1.07 billion from P1.19 billion.

The IC said the 16 non-life insurance firms reported net losses during the period.

Nonetheless, net premiums written, fire insurance, motor car, and aviation lines all posted improvements.

Investments for the non-life segment grew by 9.16 percent to P139 billion while assets climbed by 21 percent to P343 billion on the sector’s time deposits, debt securities in government, equity securities, and investments in property, among others.

Further, the IC reported that mutual benefit associations (MBAs) increased their premiums by three percent to P3.28 billion, while their expenses dropped by 21 percent to P2.07 billion.

Overall, the segment widened its net surplus by 12.62 percent to P1.39 billion.

Combined, total assets of the three segments improved to P2.12 trillion in the first quarter while total benefits paid picked up 20 percent to P33.32 billion.

IC commissioner Dennis Funa said life and non-life insurers and MBAs are steadily recovering from the adverse economic effects of the pandemic.