Insurance sector books higher combined profit

The insurance sector saw its overall net income grow by 9.38% in the first nine months, the industry regulator said on Wednesday, with its combined assets, invested assets, and net worth also increasing.

The net income of the insurance industry stood at PHP 38.28 billion at end-September, up from PHP 35 billion in the same period last year, the Insurance Commission (IC) said in a statement.

This came as the life and nonlife insurance sectors saw higher premiums and as mutual benefit associations (MBAs) posted increased contributions in the period.

The premium income of life insurance companies grew by 13.93% to PHP 229.89 billion in the first nine months, with PHP 46.57 billion coming from new business.

The sector posted a net income of PHP 28.79 billion in the period, up by 10.32% from PHP 26.10 billion last year.

Meanwhile, the nonlife insurance sector’s total net premiums written rose by 15.56% to PHP 48.21 billion at end-September.

The segment’s net profit increased by 14.99% to PHP 5.48 billion from PHP 4.76 billion a year prior.

Lastly, MBAs saw contributions rise by 7.43% to PHP 11.494.4 billion in the first nine months.

However, the net earnings of MBAs declined by 3.05% to PHP 4.01 billion from PHP 4.14 billion last year due to a 32.72% rise in total underwriting expenses amounting to PHP 9.64 billion.

Meanwhile, the insurance industry’s combined assets went up by 9.93% to PHP 2.23 trillion as of September from P2.03 trillion a year prior, while total liabilities increased by 9.77% to PHP 1.78 trillion from P1.62 trillion.

The sector’s total invested assets likewise rose by 14.96% year on year to PHP 1.98 trillion in the period from PHP 1.73 trillion.

Overall net worth grew by 10.6% to PHP 450.15 billion from PHP 407 billion.

Lastly, total paid-up capital and guaranty fund went up by 5.10% to PHP 83.04 billion from PHP 79.01 billion. — AMCS