The Philippine Insurance Commission (IC) has announced that insurance density in the country increased by 12.44% in the third quarter of 2024 (Q3 2024).
This figure, which measures the average per capita spending on insurance, rose to ₱2,910.10 from ₱2,588.05 in the same quarter of 2023.
The growth in insurance density was attributed to a 13.45% rise in total industry premiums, which reached ₱328.55 billion in Q3 2024, compared to ₱289.60 billion in the prior year. This increase surpassed the population growth rate of 0.89% during the same period.
The IC reported that total benefits paid by insurers declined by 6.55%, amounting to ₱90.64 billion in Q3 2024, down from ₱96.99 billion in Q3 2023.
At the same time, net income for the industry saw a 4.23% increase, rising to ₱39.93 billion from ₱38.31 billion year-on-year.
Insurance penetration, which measures premiums as a percentage of gross domestic product (GDP), edged up slightly to 1.74% from 1.68% the previous year.
According to Insurance Commissioner Reynaldo A. Regalado, this improvement reflects the industry’s expansion relative to the economy’s overall growth.
“The growth in premiums and net income earned by the industry vis-à-vis the slight contraction in benefits paid reflects its ability to expand its customer base while effectively managing claims, thus maintaining financial stability,” he said.
Total assets across the life insurance, non-life insurance, and mutual benefit association (MBA) sectors increased by 12.13% to ₱2.50 trillion as of Q3 2024, up from ₱2.23 trillion in Q3 2023.
Invested assets grew 13.75%, reaching ₱2.26 trillion. Total liabilities rose by 13.26% over the same period, amounting to ₱2.02 trillion.
Regalado said this growth in industry assets illustrates the sector’s ability to expand despite challenging economic conditions.
“This year-on-year growth in the industries’ assets highlights their resilience and even expansion despite economic volatility. Yet, asset growth coupled with growth in liabilities translate to narrower profits or a focus on reinvesting in business growth,” he said.
Life insurance companies reported a 14.46% increase in total assets, which reached ₱1.98 trillion by the end of Q3 2024.
Invested assets climbed 15.01% to ₱1.93 trillion, with significant allocations to financial assets at fair value through profit or loss (FVTPL) and available-for-sale (AFS) investments.
Premium income for life insurers rose 14.49% year-on-year to ₱263.2 billion, supported by a 45.27% growth in single premiums for variable life products.
Variable life insurance premiums accounted for 65% of total premium income, with traditional life insurance premiums also increasing by 18.11%.
Despite the growth in premiums, net income in the life sector dropped slightly by 0.13%. The decline was linked to a 27% fall in underwriting gains and higher general and administrative costs.
Non-life insurers reported a 1.93% increase in total assets, which stood at ₱363.08 billion in Q3 2024.
Invested assets rose by 2.07% to ₱178.30 billion, with significant portions allocated to time deposits, held-to-maturity securities, and AFS financial instruments.
Net premiums written (NPW) rose 10.19% to ₱53.13 billion. Motor vehicle insurance accounted for the largest share at 41.08% of NPW, increasing from ₱19.81 billion in Q3 2023 to ₱21.83 billion in Q3 2024. Fire insurance premiums grew by 17.24%, while accident insurance premiums rose 11.39%.
The non-life sector’s net income increased by 17.17% to ₱6.41 billion, aided by a 30.09% rise in investment income and a 4.76% increase in underwriting gains.
Mutual Benefit Associations (MBAs) reported total assets of ₱158.23 billion, reflecting a 9.33% year-on-year increase. Invested assets, which represent 93.6% of total assets, rose 13.22% to ₱148.10 billion.
The sector’s total liabilities grew 8.69%, primarily due to increases in liabilities for individual equity values and optional benefit reserves.
Total fund balances rose by 10.27% to ₱65 billion, driven in part by higher funds assigned for member benefits.
The MBA sector’s net surplus climbed 17.73% to ₱4.77 billion, supported by a 9.01% rise in investment income and a significant reduction in operating expenses, which fell by 29.46%.
The financial figures were based on unaudited reports submitted by 127 of the 137 life and non-life insurers and MBAs operating in the Philippines.
The IC continues to monitor developments in the sector as it adjusts to economic and market changes.
While challenges persist, the growth in premiums, assets, and net income suggests that the industry is poised to further expand its reach and financial stability in the near term.
