Pre-need profit soars despite stricter regulatory oversight

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February 25, 2026 | 12:00am

MANILA, Philippines —  The pre-need industry earned over 50 percent more in 2025 despite tighter rules that trimmed down the number of licensed companies, the Insurance Commission said.

In a statement, the IC said the industry’s net income stood at P7.96 billion last year, up by 54.4 percent from P5.15 billion in 2024.

Premium income rose by 5.7 percent to P23.94 billion following a 28.02 percent jump in the total number of plans sold.

The IC said the sector sold 895,679 pre-need plans, up from 699,621 in 2024, with life and memorial plans accounting for 99.84 percent of total sales.

“The overall performance of the industry reflects a positive outlook and strong growth prospects in the market. This is a foundation we aim to build upon in 2026 and in the succeeding years,” IC commissioner Reynaldo Regalado said.

The IC said the industry’s total assets rose to P178.2 billion in 2025, from P164.71 billion in the previous year.

The 8.2 percent increase was attributed to investments in trust funds, which picked up by 9.6 percent and now represents 85.92 percent of total assets.

Meanwhile, the IC noted that despite stricter regulatory oversight that led to the reduction in the number of licensed companies, the sector posted a double-digit growth in 2025.

The sector’s total net worth stood at P33.87 billion at end-2025. Its retained earnings jumped by 39.6 percent, accounting for 73.48 percent of the total net worth.

“Strengthened regulatory oversight has positively impacted the industry’s growth by restoring the trust and confidence of both consumers and investors, ensuring a more secure and transparent market environment,” Regalado said.

He added that the pre-need industry continues a “solid upward path”  bolstering its financial position and keeping “profitability, and enhancing its capacity to meet future obligations.”

Total liabilities stood at P144.33 billion, primarily due to pre-need reserves, which make up 91.3 percent of the industry’s total liabilities.

“The industry also recorded a P16.03 billion surplus over required reserves, a 62.6 percent improvement compared to the industry’s record in 2024, with investments in trust funds remaining more than sufficient to cover all pre-need reserves, including benefits payable,” the IC said.