MANILA, Philippines — The Philippine pre-need industry took a hit in the first quarter, with net income plummeting by 88.1 percent due to weaker trust fund income amid geopolitical tensions and inflationary pressures.
Latest data from the Insurance Commission (IC) reported that the sector’s net income contracted sharply to just P140 million in the first three months of 2026 from P1.17 billion in 2025.
“The decrease in investment earnings reflects the impact of global economic uncertainty and geopolitical tensions, which have affected financial markets and investment performance. Increased market volatility and inflationary pressures also contributed to the decline in the industry’s net income,” Insurance Commissioner Reynaldo Regalado said.
Despite the slump, IC reported that the sector’s total net worth rose by 12.2 percent to P32.36 billion as of end-March from P28.84 billion in the same period last year.
Regalado attributed the increase to the 19 percent surge in retained earnings, which made up nearly 78 percent of the industry’s total net worth.
Total assets also went up by 9.6 percent to P179.32 billion from the same quarter last year. This was mainly driven by trust fund investments, which accounted for 85.8 percent of the total and grew by 9.5 percent year-on-year.
Premium income stood at P6.53 billion in the first quarter, up by 12.3 percent from P5.82 billion in the first quarter of 2025.
The number of plan sales continued to increase, rising by 11.9 percent to 244,233, with life and memorial products dominating at 99.9 percent of total.
Total liabilities rose by 9.1 percent to P146.96 billion, reflecting a 9.32-percent increase in pre-need reserves.
“The pre-need industry’s strong performance in the first quarter of 2026 reflects its resilience, sound financial position and commitment to fulfilling its obligations to planholders,” Regalado said.
