Pre-need industry earnings improve in H1

MANILA, Philippines — The pre-need industry’s income rose by 31 percent to P1.33 billion in the first semester   amid higher life plans sold, according to the Insurance Commission (IC).

Latest data from IC showed that the net income of the industry went up by  31 percent to P1.33 billion in January to June  from   P1.02 billion in the same period last year.

This even as premiums sold by the pre-need sector only inched up by two percent to P9.79 billion.

In total, the industry sold 326,623 pre-need plans, almost 20 percent better than the 273,921 sold the previous year.

Life plans accounted for the bulk or 99 percent of the total,  registering a 20 percent increase in the number of plans sold.

The remaining 534 were pension plans, which dropped by 24 percent from the 705 sold a year ago.

Further, the IC said that investments in trust funds slightly improved by three percent to P95 billion while pre-need reserves rose by 10 percent to P92.13 billion.

As mandated by the Pre-need Code, pre-need providers keep a reserve to cover benefit payables.

Meanwhile, the IC said the difference between investment in trust funds and pre-need reserves declined by 65 percent to P2.88 billion from P8.27 billion in 2021.

Despite the decline, the industry managed to maintain an asset base worth P109 billion as against a liability sum of P96.4 billion. Total net worth, however, went down  by 30 percent to P12.69 billion.

Latest pre-need figures covered a total of 12 firms, of which 10 are licensed and two are servicing companies.

St. Peter Life Plan Inc. sold the most number of  plans at 319,330 with a contract price of P15.46 billion, followed by Cosmopolitan Climbs Life Plan Inc. which sold 5,757 plans worth P210 million.

Golden Future Life Plan issued 492 plans worth P47.98 million, and Trusteeship Plans Inc. signed off 510 valued at P24.06 million.

Only Caritas Financial Plans sold pension plans in the first half, releasing 534 with a contract price of P71.39 million.