Philippine pre-need income doubles in Q4 2024

Also, the sector’s total assets grew by 8.12%.

The Philippine pre-need industry’s total net income more than doubled (146.93%) year-on-year (YoY) to $87.6m (₱5.15b) as of the fourth quarter of 2024 (Q4 2024), data from the Insurance Commission showed.

Insurance Commissioner Reynaldo A. Regalado attributed the rise to a 68.04% jump in income from investments in trust funds and a 120.23% surge in other income.

The data came from unaudited interim financial statements submitted by 16 pre-need companies.

The sector’s total assets grew by 8.12% to $2.8b (₱164.71b) as of Q4 2024, from $2.6b (₱152.34b) in the previous year.

Investments in trust funds, which make up 84.79% of total assets, increased by 9.08%.

However, total premium income declined slightly by 0.38% to $384.9m (₱22.64b), as only 8 out of 17 companies reported higher premium collections.

Pre-need plans sold fell by 6.61% to 699,621 in Q4 2024 from 749,154 a year earlier.

Life or memorial plans remained the top-selling products, accounting for 99.88% of total sales.

Total liabilities rose by 5.89% to $2.3b (₱136.73b), driven by a 6.10% increase in pre-need reserves, which make up 90.68% of total liabilities.

Seven out of eight companies that saw asset growth also recorded higher liabilities.

The industry’s total net worth increased by 20.54% to $475.7m (₱27.98b), from $394.7m (₱23.22b) in Q4 2023, mainly due to a 38.04% rise in retained earnings, which account for 63.72% of total net worth.

($1.00 = ₱57.56)