The Philippine insurance industry experienced year-on-year growth in key financial indicators, including net income, premiums earned, and benefit payments, as of the fourth quarter of 2024 (Q4 2024), according to data from the unaudited Enhanced Quarterly Reports on Selected Financial Statistics (EQRSFS).
The figures were based on reports submitted by life and non-life insurers, as well as mutual benefit associations (MBAs), to the Insurance Commission.
Insurance Commissioner Reynaldo A. Regalado said that total premiums across the industry rose by 12.81% compared to the previous year, while net income increased by 15.88%. The total amount of benefits paid to policyholders also grew by 18.97%.
Data showed that total premiums increased from ₱390.39 billion in the fourth quarter of 2023 to ₱440.39 billion in the same period of 2024. Net income grew from ₱48.58 billion to ₱56.29 billion, while benefits paid climbed from ₱134.76 billion to ₱160.33 billion.
The industry’s invested assets expanded by 7.23%, reaching ₱2.20 trillion, up from ₱2.05 trillion in the previous year. Total assets also saw a 6.43% increase, rising from ₱2.31 trillion to ₱2.46 trillion.
The EQRSFS report included submissions from 128 of the 137 licensed insurers and MBAs operating in the country.
Insurance penetration, which measures the industry’s share of the country’s gross domestic product (GDP), increased slightly from 1.61% in 2023 to 1.67% in 2024. Regalado attributed this to the faster growth of insurance premiums relative to the 8.84% GDP expansion.
Additionally, insurance density, which represents the per capita spending on insurance, increased by 12.58% to ₱3,892.77.
The life insurance sector’s total assets grew by 7.30%, reaching ₱1.92 trillion. This increase was attributed to a 4.93% rise in traditional fund assets and a 9.10% increase in segregated fund assets. Meanwhile, the sector’s net worth rose by 2.33%, supported by an 11.40% increase in retained earnings.
Total invested assets for life insurers reached ₱1.86 trillion, reflecting a 7.09% increase. The sector’s premium income rose by 13.56% to ₱352.02 billion.
Both variable and traditional life insurance policies saw growth, with variable life premiums increasing by 12.21% and traditional life premiums growing by 16.17%. A notable increase of 40.33% in single premiums contributed to the expansion.
New Business Annual Premium Equivalent (NBAPE), a measure of new business growth, increased by 9.57% to ₱67.49 billion. Meanwhile, the sector’s net income climbed by 19.63% to ₱40.23 billion, despite a 22.06% rise in benefit payments. Higher gains from investment sales and miscellaneous income contributed to the increase.
Total assets in the non-life insurance sector grew by 0.73% year-on-year, reaching ₱374.49 billion. However, total liabilities declined by 0.68% to ₱240.20 billion. The sector’s net worth increased by 3.35% to ₱134.30 billion.
Invested assets in the non-life sector grew by 4.48% to ₱185.00 billion, driven by a 10.34% increase in available-for-sale (AFS) financial assets. Net premiums written (NPW) rose by 10.49% to ₱71.84 billion. The motor car insurance segment, which accounted for 40.17% of NPW, increased by 6.28%. Fire insurance, which made up 16.64% of NPW, grew by 12.44%.
Net income for the non-life insurance sector declined by 2.63% to ₱8.89 billion. The decrease was attributed to a contraction in underwriting gains, which was caused by higher underwriting expenses outpacing income growth. Increased administrative costs and a 34.12% rise in income tax provisions also contributed to the decline.
The MBA sector posted growth across all key financial metrics. Total assets increased by 10.1% to ₱163.58 billion, while invested assets expanded by 12.62% to ₱152.54 billion. The majority of MBA investments were in long-term bonds, which accounted for 49.64% of total assets, and loans, which made up 31.35%.
Total net surplus for MBAs increased by 23.24% to ₱7.16 billion. The rise was largely due to a significant increase in other income, as well as a 7.49% growth in total premiums and contributions. Total liabilities for the sector increased by 9.37%, while the total fund balance grew by 11.16% to ₱67.27 billion.
Premiums and contributions collected by MBAs rose by 7.49% to ₱16.54 billion compared to the previous year.
The Philippine insurance industry ended 2024 with increased premiums, assets, and net income across most segments. While the non-life sector experienced a slight decline in net income, overall growth in other areas indicated sustained expansion within the industry.
