THE INSURANCE INDUSTRY posted higher net income in the first quarter propelled by strong growth across all sectors, the Insurance Commission (IC) reported.

Data based on unaudited reports submitted by life and non-life insurance companies as well as mutual benefit associations (MBA) to the IC showed the industry’s net income grew 46% to P11.72 billion in the first three months of the year from P8.04 billion booked in January-March 2018.

Broken down, the life insurance sector posted a P9.08-billion net income in the three months ended March, 44% higher than the P6.31 billion reported last year.

“[T]his increase can be attributed to the decreases in reserve, benefits payment, and other underwriting expenses,” the regulatory body said in a statement.

On the other hand, the net profit of the non-life insurance sector surged 121% to P1.04 billion from P470 million tallied in the first three months of 2018, attributable to “huge” growth in premium income, commissions, as well as other underwriting income.

The MBA sector’s net surplus was at P1.6 billion in the first quarter, 27% higher compared to the P1.26 billion posted in the same period in 2018.

“The increase in the net surplus of the MBA sector is due to the upsurge of the net surplus of four micro-MBAs and the incremental growth on the net surplus of all regular MBAs,” Insurance Commissioner Dennis B. Funa said in the statement.

Despite tallying higher net income, the insurance industry recorded an eight-percent decline in terms of premiums to P70.71 billion in the first three months from P76.64 billion last year.

Mr. Funa said the life insurance sector posted a decrease in total premiums, while non-life insurers and MBAs posted increases in net premiums written and contribution.

“The decrease in the total premiums of the life sector can be attributed to the year-on-year 59% decrease in premiums collected from single premium variable life insurance products,” he added.

Total assets of the industry grew eight percent in January to March to P1.68 trillion from P1.55 trillion posted in the comparable year-ago period.

Investments of the insurance industry also rose 14% year-on-year to P1.5 trillion from P1.32 trillion last year.

On the other hand, the industry’s total net worth stood at P371.38 billion, up 20.17% from P309.04 billion posted a year ago. — K.A.N. Vidal

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