THE insurance industry saw assets hit a record high last year with both the life and non-life sectors posting expansions, regulators reported Monday.
Based on unaudited quarterly reports submitted by all industry players, the industry’s assets reached an all-time high of P1.56 trillion as of end-2017, 19 percent higher from the P1.31 trillion recorded in 2016, the Insurance Commission said.
The life insurance sector accounted for P1.26 trillion or 80.7 percent while the non-life and mutual benefit association (MBA) sectors held P221.74 billion and P77.47 billion, respectively.
“The increase in the total assets of the life insurance sector is attributed to the 78.1-percent increase in reinsurance accounts receivables or those amounts collectible arising from reinsurance transactions to P4.65 billion as of end of 2017 from P2.61 billion as of end of 2016, and the 25.40 percent increase in the segregated fund assets during the same comparable period,” Insurance Commissioner Dennis Funa said.
Non-life sector growth, meanwhile, was due to an increase in receivables from reinsurance transactions, which rose to P64.12 billion compared to P38.79 billion in the previous year.
Premiums receivable of the non-life insurance sector likewise increased to P25.26 billion from P19.60 billion.
Of the industry’s P1.56 trillion in total assets, about 85 percent or P1.33 trillion was placed in investments.
“Again, as of year-end 2017, the industry recorded the highest invested funds in the total amount of P1.33 trillion compared to those reported in recent years,” Funa said.
Government and corporate bonds accounted for 47 percent with another 29 percent placed in the stock market.
In net worth terms, the industry also posted a record-high P320.3 billion, the commission said.
The life insurance sector recorded a 19.48-percent rise, primarily due to an increase in investment fluctuation reserves that represent unrealized appreciation in market value of stock and bond investments at a given report date.
Non-life insurers, meanwhile, saw net worth increase by 13.8 percent, attributed to higher total unassigned surplus/retained earnings and investment fluctuation reserves.
The MBA sector, lastly, recorded a 21.7 percent increase on the back of unassigned surplus/retained earnings.
“After experiencing a slight decline on revenue in 2016, the industry posted a 50.4 percent increase in net income as of year-end 2017,” Funa also said.