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Keisha Ta-Asan - The Philippine Star
February 15, 2025 | 12:00am
IC chief Reynaldo Regalado reported that total premiums across the life, non-life and mutual benefit associations (MBAs) sectors increased by 12.8 percent to P440.39 billion as of the fourth quarter of 2024 from P390.39 billion in the previous year.
STAR / File
MANILA, Philippines — The Philippine insurance industry closed 2024 on a high note, with net income, premiums earned and benefits paid all posting significant year-on-year growth, according to the Insurance Commission.
IC chief Reynaldo Regalado reported that total premiums across the life, non-life and mutual benefit associations (MBAs) sectors increased by 12.8 percent to P440.39 billion as of the fourth quarter of 2024 from P390.39 billion in the previous year.
Net income surged by 16 percent to P56.29 billion, while benefits paid jumped by 19 percent to P160.33 billion as of end-2024. Invested assets of insurers and MBAs grew by 7.2 percent to P2.2 trillion, while total assets increased by 6.4 percent to P2.46 trillion.
Insurance penetration – measuring premiums as a percentage of gross domestic product (GDP) – climbed to 1.67 percent in the fourth quarter of 2024, a 0.1-percent increase from the previous year.
Insurance density, which represents the per capita spending on insurance, rose by 12.6 percent to P3,892.77, reflecting increased consumer participation in insurance products.
The life insurance sector posted strong results, with total assets rising by 7.3 percent to P1.92 trillion. This growth was driven by a 9.1-percent increase in segregated fund assets and a 4.9-percent rise in traditional fund assets.
Premium income from life insurance rose by 13.5 percent to P352.02 billion, with variable life premiums increasing by 12.2 percent and traditional life premiums growing by 16 percent.
This brought the net income of life insurers to P40.23 billion, 19.6 percent higher compared to a year ago. The profitability boost was attributed to a 77.6-percent rise in miscellaneous income and a 94 percent increase in gains from investment sales.
Non-life insurers recorded a modest 0.7-percent increase in total assets, reaching P374.49 billion, while total liabilities stood at P240.2 billion. Invested assets grew by 4.5 percent to P185 billion, largely due to a 10.3-percent rise in available-for-sale financial assets.
Net premiums written for non-life insurers rose by 10.5 percent to P71.84 billion, with the vehicle insurance line contributing 40.2 percent of total NPW. Motor insurance premiums inched up by 6.2 percent to P28.86 billion, while the fire insurance segment grew by 12.4 percent.
Despite overall growth, the non-life sector’s net income slipped by 2.6 percent to P8.89 billion, as underwriting expenses and general administrative costs increased.
“The commission still views that the non-life sector exhibited strength and continued financial growth, with a solid performance in key areas like motor car insurance and high investment returns. Overall, the non-life market remains stable and improving, indicating positive long-term prospects,” Regalado said.
The MBA sector posted robust year-on-year growth across all indicators. Total assets expanded 10.1 percent to P163.58 billion, while invested assets grew 12.6 percent to P52.54 billion.
The sector’s net surplus surged 23.2 percent to P7.16 billion, buoyed by a four-fold increase in other income and a 7.5-percent rise in premiums collected.
