Philippine life insurance up 3.30% in first quarter

Total assets accumulated for the quarter reached P1.71t.

The Philippine life insurance sector’s total assets went up 3.30% year-on-year (YoY), preliminary figures from the Philippine Insurance Commission showed.

This amounted to P1.71t ($31b) in total assets, versus the P1.65t ($30b) the previous year.

This was bolstered by the growth in the market’s total segregated fund assets which increased 1.87% or P17b ($310m). Its total segregated fund assets saw a 4.65% climb or P30.14b ($540m). Both segments account for 54.29% and 39.68% of the total assets, accordingly.

Likewise, life insurance’s total net worth in the country jumped 28.68% to P286.55b ($5.18b) in the quarter. This was mainly due to the 8.96% YoY growth and 486.95% YoY surge from retained earnings and reserve accounts, respectively.

The life insurers' total paid-up capital rose by 18.25%, reaching P31.40b ($570m) in the first quarter of 2023, compared to P26.55b ($480m) last year, due to the addition of two new industry entrants.

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The industry's total liabilities decreased by 0.60% YoY ($160m), primarily driven by a 14.12% ($890m) contraction in the life insurers' aggregate reserves. 

Additionally, the total net income of life insurers contracted by 12.87% YoY, declining to P6.50b ($120m) in the quarter. This drop can be attributed to a 29.20% increase in other expenses and a 20.75% increase in general administrative expenses.

Likewise, total premium income inched down 0.47% YoY to P78.24b ($1.41b) during the quarter.

The quarterly report is based on the selected financial reports submitted by 33 of 35 life insurance companies in the Philippines.

(P1.00 = $0.018)