Insurance industry posts higher premium collections

The insurance industry saw its premiums increase by 2.36% to PHP 389.62 billion in 2023 as all sectors saw higher collections, the sector’s regulator said on Wednesday.

Life insurers saw their premium collections rise by 0.15% to PHP 309.99 billion, the Insurance Commission (IC) said in a statement.

Broken down, premiums collected from traditional life insurance products rose by 11.52% to PHP 105.19 billion, while premiums collected from variable life insurance products dropped by 4.84% to PHP 204.8 billion.

Meanwhile, nonlife insurance companies also posted higher net premiums at PHP 64.24 billion, up by 12.9% from the previous year.

Mutual benefit associations (MBA) saw total contributions increase by 8.29% year on year to PHP 15.38 billion.

The insurance industry posted a combined net income of PHP 48.46 billion last year, up by 3.8% from the 2022 level.

This was driven mainly by the nonlife sector, which saw its net profit grow by 30.07% to PHP 9.107 billion from PHP 7.001 billion, the IC said.

Benefit payments by nonlife insurance companies also increased by 18.85% to PHP 26.10 billion.

Meanwhile, the net income of life insurers slipped by 0.72% to PHP 33.631 billion in 2023 from PHP 33.875 billion.

The net earnings of MBAs likewise declined by 1.55% to PHP 5.727 billion from PHP 5.817 billion.

Benefit payments by life insurance companies and MBAs also decreased by 3.8% and 25.41%, respectively.

The insurance industry’s combined assets rose by 8.02% to PHP 2.31 trillion in 2023 from PHP 2.14 trillion the year prior, while liabilities grew by 9.31% to PHP 1.85 trillion.

The sector’s total net worth increased by 3.13% to PHP 460.78 billion from PHP 446.81 billion. Total paid-up capital and guaranty fund was at PHP 84.01 billion, up by 3.34% year on year.

Total invested assets stood at PHP 2.05 trillion, rising by 12.47% from PHP 1.83 trillion a year prior.

Insurance density, or the amount of premium per capita or the average spending of each individual on insurance, rose by 1.45% to PHP 3,450.97 from PHP 3,401.60.

Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the contribution of the sector to the economy, went down to 1.6% from 1.73%.

HMO INDUSTRY POSTS BIGGER NET LOSS
Meanwhile, the health maintenance organization (HMO) industry incurred a net loss of PHP 4.269 billion in 2023 due to higher spending on benefits and taxes, the IC said in a separate statement.

This was bigger than the PHP 1.433-billion net loss recorded in 2022.

Data from the IC’s website showed 14 out of 27 HMOs incurred net losses in 2023.

Healthcare benefits released by HMOs in 2023 amounted to PHP 55.46 billion, up by 26.23% from PHP 43.93 billion a year prior.

Meanwhile, total revenues rose by 16.36% year on year to P66.89 billion. Of this amount, PHP 64.94 billion came from memberships, enrollees, and administrative or service only fees. This was a 16.23% rise from PHP 55.87 billion in 2022.

The HMO industry’s assets rose by 8.98% to PHP 60.66 billion, while liabilities increased by 13.38% to PHP 50.41 billion.

Meanwhile, total equity decreased by 8.48% to PHP 10.25 billion.

Total invested assets went down by 1.12% to PHP 16.64 billion amid a decrease in financial assets, investments in subsidiaries, associates and joint ventures, and investment property. — A.M.C. Sy