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July 14, 2024

Insurance industry records decrease in Q2 premiums

The Insurance Commission (IC) has reported a 0.49 percent year-on-year decrease in the combined premiums of the insurance industry in the second quarter, with data based on submissions from 128 out of 136 licensed life and non-life insurers and mutual benefit associations (MBAs) showing a total premium of P187.76 billion during the three months ending June, down from P188.69 billion in the same period last year.

Despite the dip in premiums, the industry’s total assets and net worth increased by 10.40 percent to P2.23 trillion and 18.83 percent to P452.05 billion, respectively. Total paid-up capital and guaranty fund also saw growth, rising by 7.82 percent to P82.79 billion at the end of June. Total liabilities increased by 8.45 percent to P1.78 trillion, and invested assets went up by 14.94 percent to P1.98 trillion.

However, the industry saw its benefit payouts go down by 5.04 percent year on year to P61.77 billion in the second quarter, while the three sectors’ combined net income rose by 4.23 percent to P22.39 billion.

Insurance density, or the amount of premium per capita, slipped by 1.73 percent to P1,677.50 per individual, but insurance penetration, which calculates premium volume as a share of gross domestic product, inched up to 1.63 percent in the second quarter from the revised 1.61 percent a year prior.