THE insurance industry posted a higher premium income in 2019 as it grew by 4.99 percent, with all sectors recording growths last year, according to the Insurance Commission (IC).
The IC said in a statement yesterday the total premiums collected in 2019 went up to P304.64 billion, from P290.15 billion in 2018.
However, the total premium income grew at a slower pace compared to the double-digit increase recorded in 2018, when it rose by 11.67 percent.
“Based on unaudited QRSFS (quarterly reports on selected financial statistics), all sectors of the insurance industry — the life insurance, non-life insurance, and mutual benefit associations (MBAs) — also recorded growth in… 2019 in terms of assets, net worth, investments, and total premiums collected,” Dennis Funa, insurance commissioner, said.
“These figures were obtained prior to the onset of the community quarantine due to the coronavirus disease 2019 (COVID-19) pandemic. Nevertheless, we hope that the economic and financial impact of the pandemic in the succeeding reporting quarter will be softened by the measures adopted by the commission through the various COVID-19-related circular letters that we have issued,” he added.
The IC said the industry’s total investments increased by 19.89 percent year-on-year from P1.33 trillion in 2018 to P1.59 trillion last year.
During the same period, total assets grew by 13.03 percent, from P1.58 trillion to P1.78 trillion.
The industry’s aggregate net worth likewise increased by 13.04 percent from P337.55 billion to P381.59 billion.
The IC also reported that the insurance industry’s total net income increased by 20.38 percent year-on-year to P45.12 billion, from P37.48 billion in 2018.
“The significant growth of the life insurance industry’s net income, which was due to increases in premium income, commissions earned, and underwriting income, drove the overall increase of the net income of the entire insurance industry,” Funa said.
The life insurance industry’s net income in 2019 amounted to P36.13 billion, which is 25.76 percent more than the recorded net income in 2018 amounting to P28.73 billion.
In addition to the reported increase in net income, the life insurance industry’s investments rose by 19.43 percent during the same period, from P1.16 trillion to P1.39 trillion.
The IC also said the industry’s assets, net worth, premiums collected, and paid-up capital grew, although it did not cite the actual figures.
As for the non-life insurance industry, its total investments grew by 30.88 percent from P89.77 billion in 2018 to P117.50 billion last year.
“This notable increase in the total investments of the non-life insurance industry can be attributed to the 63 percent increase in equity securities investments, 16 percent increase in investments in government debt securities, and 33 percent increase in investments in debt securities from private sector, year-on-year,” Funa said.
The non-life insurance industry’s aggregate net worth also increased by 19.2 percent during the same period, from P82.33 billion to P98.14 billion.
Further, while unable to provide the figures, the IC said the non-life insurance industry’s total assets, paid-up capital, and net premiums written posted growth.
The agency said the unaudited QRSFS also showed that the MBA industry’s total assets increased by 15.02 percent from P87.86 billion to P101.06 billion; and its total fund balance grew by 17.39 percent from P35.31 billion to P41.45 billion.
“The MBA industry’s other performance indicators displayed an upward trend year-on-year, particularly its total guaranty fund, investments, contributions/premiums collected, and net surplus,” the IC said.
