By Louise Maureen Simeon | The Philippine Star
September 22, 2023
MANILA, Philippines — The insurance industry saw its net income increase to P22 billion in the first semester of the year amid improvements in both life and non-life segments, with its contribution to the overall economy also inching up to 1.63 percent.
Data from the Insurance Commission showed that net income of the sector went up 4.23 percent to P22.39 billion in January to June this year from the P21.48 billion in profit in the same period last year.
This, even as insurance density or the average spending of an individual on insurance decreased 1.73 percent to P1,667.50 from P1,696.89.
Nonetheless, the share of the sector to the country’s gross domestic product also improved, albeit minimal, to 1.63 percent from 1.61 percent in the first half of last year.
Broken down, the life insurance segment registered a 2.58 percent increase in net income to P16.37 billion from P15.96 billion in 2022.
This was largely due to the seven percent decline in total benefit payments to P46.97 billion.
Investments rose by 14.85 percent to P1.68 trillion, while assets went up by 12.53 percent to P1.73 trillion.
On the other hand, the non-life insurance segment’s net income soared 33 percent to P3.64 billion from P2.75 billion.
Investments for the non-life segment grew by nearly 20 percent to P168.09 billion while assets inched up by a percentage to P355.67 billion, mainly placed in debt securities in both government and private sector, time deposits, investment property, mutual funds, and real estate investment trusts, among others.
Further, the IC reported that mutual benefit associations (MBAs) increased their premiums by 14 percent to P7.59 billion while expenses slipped 17 percent to P3.49 billion.
Overall, the segment narrowed its net surplus by 14 percent to just P2.37 billion.
Combined, total assets of the three segments improved 10 percent to P2.23 trillion in the first half while total benefits paid went down five percent to P61.77 billion.
The first semester insurance data came from submissions of 128 out of the 136 licensed insurers and MBAs.