The insurance industry posted a 19.51-percent growth in premium income during the first quarter of 2017 with all the sectors starting the year strong.
Data from the Insurance Commission placed the industry’s total premium income at P57.03 billion in January to March, up from P47.72 billion a year earlier.
Insurance Commissioner Dennis Funa said he is confident the industry can sustain its first-quarter performance through 2017.
Premiums sold by the life insurance sector amounted to P44.08 billion, up 14.19 percent from P38.60 billion, mainly on higher premiums generated from the sale of variable products.
“While the premium income in traditional life insurance declined by 3.87 percent, the life insurance sector registered a 23.21-percent increase in premium income from the sale of variable life insurance products,” Funa said.
The non-life insurance sector recorded a 19.40-percent increase in net premiums written at P10.89 billion from P9.12 billion, due to an increase in premiums from fire and motor vehicle insurance.
“The fire business contributes to almost half or 48.24 percent to the total net premiums written of the non-life insurance sector. On the other hand, the net premiums written from motor business comprises 18.01 percent of the total net premiums written,” Funa said.
Mutual benefit associations contributed P2.06 million to the industry’s total premium income.
Total assets of insurance companies increased to P1.42 trillion during the first three months of 2017, up 22.26 percent from P1.17 trillion a year earlier.
Total investments reached P1.24 trillion from P1.02 trillion, up 21.35 percent.
“The life insurance sector’s total investment stood at P1.10 trillion, 40 percent or P4.42 billion of which was invested in government bonds while the non-life insurance sector’s total investment amounted to P74.65 billion, 39.08 percent of P29.17 billion of which was invested in government bonds,” Funa said.
Investments by the insurance industry are placed in private bonds, stocks, real estate, mutual funds, unit investment trust fund, real estate investment trust and deposits in banks.
The industry recorded P6.34 billion in net income, up 25.77 percent from P5.04 billion.
The life sector posted an increase of 6.52 percent year-on-year to P4.81 billion from P4.52 billion. The non-life sector posted an 11.98 percent increase to P580 million from P518 million.
Total industry net worth rose by 35.85 percent to P292.95 billion as of end-March, from P215.64 billion in the same comparable period last year.