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Insurance sector posts growth in premiums, assets, and net worth in 2022

March 27, 2023By BusinessWorld

THE INSURANCE INDUSTRY’S combined assets, net worth, and premiums rose in 2022, data from the Insurance Commission showed (IC).

Data posted on the IC’s website based on submissions made by 128 out of 134 licensed life and nonlife insurers and mutual benefit associations (MBAs) showed their combined assets went up by 2.14% year on year, with their total net worth also rising by 12.35% and premiums climbing by 1.22%.

In terms of value, the industry’s combined assets, net worth and premiums stood at PHP 2.14 trillion, PHP 445.35 billion, and PHP 379.23 billion, respectively, in 2022.

The three sectors’ combined paid-up capital and guaranty fund likewise grew by 7.77% to PHP 80.07 billion last year.

Meanwhile, total liabilities slipped by 0.25% to PHP 1.69 trillion. Invested assets also went down by 0.84% to PHP 1.82 trillion.

Benefits paid by the industry declined by 2.26% to PHP 136.62 billion last year.

Net income dropped by 2.25% to PHP 46.68 billion from PHP 47.75 billion.

The IC said insurance density, or the amount of premiums per capita or the average spending of each individual on insurance, slipped by 0.32% to PHP 3.39 billion last year.

Insurance penetration, or premium volume as a share of gross domestic product or the sector’s contribution to the economy, went down to 1.72% last year from 1.93% in 2021.

Life insurers 

Broken down, the life insurance sector saw its total premium income decline by 0.45% to PHP 308.85 billion from PHP 310.24 billion, data based on submissions from 32 out of 34 licensed companies showed.

The decrease was due to a 10.33% drop in variable life premiums to PHP 214.52 billion from PHP 239.25 billion.

Meanwhile, traditional life premiums grew by 32.86% to PHP 94.33 billion.

Their new business annual premium equivalent (NBAPE) went down by 4.72% to PHP 54.96 billion from PHP 57.69 billion.

Sun Life of Canada (Philippines), Inc. was the top life insurer in terms of premium income with PHP 52.61 billion, followed by Pru Life Insurance Corp. of UK with PHP 41.5 billion.

In third place was Allianz PNB Life Insurance, Inc. with PHP 33.43 billion in premiums, while Philippine Axa Life Insurance Corp. was ranked fourth with P24.22 billion.

Rounding out the top five was BDO Life Assurance Co., Inc. with PHP 19.17 billion in premium income.

Meanwhile, the life sector’s combined net income declined by 13.52% to PHP 33.87 billion in 2022 from PHP 39.17 billion in 2021.

Total assets went down by 1.07% to P1.63 trillion, while liabilities declined by 3.39% to PHP 1.37 trillion.

Invested assets dropped by 2.37% to PHP 1.55 trillion.

Life insurers’ combined net worth rose by 13.14% year on year to PHP 261.44 billion.

Total paid-up capital likewise grew by 17.66% to PHP 30.769 billion.

Meanwhile, benefit payouts decreased by 2.6% to PHP 105.16 billion.

Nonlife sector 

On the other hand, total net premiums written by nonlife insurance companies grew by 9.73% to PHP 56.17 billion in 2022 from PHP 51.19 billion the year prior, based on data submitted by 57 out of 60 licensed firms.

Total premiums earned rose by 7.52% year on year to PHP 54.87 billion, while gross premiums written climbed by 13.2% to PHP 106.85 billion.

Prudential Guarantee & Assurance, Inc. was the top nonlife insurer in terms of net premiums written with PHP 5.73 billion. It was followed by Malayan Insurance Co., Inc. with PHP 4.5 billion, while Pioneer Insurance & Surety Corp. ranked third with PHP 3.47 billion. In fourth place was BPI/MS Insurance Corp. with PHP 2.52 billion in net premiums written, while Mercantile Insurance Co., Inc. ranked fifth with PHP 2.51 billion.

The nonlife insurance sector’s combined net profit climbed by 39.75% to PHP 6.99 billion in 2022.

Its total assets grew by 15.67% to PHP 368.52 billion, while total liabilities likewise increased by 18.37% to PHP 240.23 billion.

Nonlife companies’ overall net worth rose by 10.94% to PHP 128.29 billion.

Paid-up capital likewise grew 2.44% to PHP 48.098 billion last year.

Total invested assets increased by 7.78% to PHP 147.12 billion, while losses incurred rose 1.62% to PHP 21.82 billion.

Mutual benefit associations 

Lastly, MBAs recorded total contributions or premiums worth PHP 14.208 billion in 2022, up by 7.35% year on year, based on submissions from 39 of 40 licensed companies.

The sector’s total assets grew by 10.06% to PHP 136.12 billion, with invested assets rising by 10.62% to PHP 121.958 billion.

Total fund balance climbed by 11.95% to PHP 55.61 billion. MBAs’ combined guaranty fund likewise rose by 1.05% to PHP 1.207 billion.

The sector recorded an aggregate net surplus of PHP 5.82 billion in 2022, rising by 62.31% from the year-ago level.

Benefit payments and expenses declined by 6.8% to PHP 9.63 billion.

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