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March 05, 2024

Insurance industry witnesses robust growth in Q3

In the third quarter, the country’s insurance sector demonstrated a notable upswing, recording a remarkable 9.38 percent surge to reach P38.28 billion. This growth was propelled by substantial advancements in both the life and non-life segments.

Data freshly released by the Insurance Commission (IC) underscores that the net income of the industry escalated from July to September 2023, marking an ascent from P35 billion in the corresponding period of 2022.

The life insurance sector experienced a commendable boost, with a 10.32 percent increase, amounting to P28.79 billion. Simultaneously, non-life insurance exhibited robust growth, soaring by almost 15 percent to P5.48 billion.

Conversely, mutual benefit associations (MBAs) observed a dip of 3.05 percent, settling at P4 billion. This decline was attributed to a substantial rise in their expenses, surging by 32.72 percent or P9.64 billion.

As of Q3, life insurance companies amassed premiums exceeding P229.89 billion, with P46.57 billion attributed to new business, reflecting a robust 13.93 percent surge compared to the same period last year.

In parallel, non-life insurance entities reported P48.21 billion in net premiums during Q3, marking a noteworthy 15.56 percent increase from the corresponding figures of the previous year.

MBAs also experienced growth, reaching P11.5 billion, signifying a 7.43 percent uptick compared to the same period last year.

The assets of life insurers exhibited an impressive nearly 10 percent expansion, reaching P2.23 billion from P2.02 billion in the analogous period last year. Concurrently, total liabilities saw a robust increase of 9.77 percent, reaching P1.78 billion.

Life insurance companies witnessed a substantial upswing in net worth, marking a notable 10.60 percent increase to P450 million.

The total paid-up capital, inclusive of available cash assets, witnessed a commendable 5.10 percent rise, settling at P83.04 million. Furthermore, invested assets experienced a substantial improvement of nearly 15 percent, reaching P1.98 billion.