Pre-need sector books higher premium income
PRE-NEED COMPANIES’ combined premium income rose by 5.73% year on year to P23.94 billion in 2025 despite a decrease in the number of licensed firms due to tighter regulatory oversight, the Insurance Commission (IC) said on Monday.
“The Philippine pre-need industry exhibited sustained growth and financial stability with improved performance in key indicators,” the regulator said in a statement.
The sector’s net income surged by 54.4% to P7.96 billion last year from P5.15 billion in 2024.
This came on the back of a 28.02% growth in the number of plans sold to 895,679 in 2025 from 699,621 in 2024, with life and memorial plans comprising 99.84% of total sales.
Meanwhile, the combined net worth of pre-need companies rose by 21.04% year on year to P33.87 billion,
Retained earnings, which accounted for 73.48% of their total net worth, increased by 39.57%.
The sector’s total assets grew by 8.19% to P178.2 billion last year from P164.71 billion in 2024.
This was mainly driven by a 9.64% increase in investments in trust funds that made up 85.92% of companies’ total assets.
Meanwhile, pre-need firms’ combined liabilities stood at P144.33 billion, with reserves making up 91.27% of the total.
The industry also recorded a 62.62% increase in surplus over required reserves to P16.03 billion, with investments in trust funds more than enough to cover all pre-need reserves, including benefits payable.
“Strengthened regulatory oversight has positively impacted the industry’s growth by restoring the trust and confidence of both consumers and investors, ensuring a more secure and transparent market environment. As the data show, the pre-need industry continues a solid upward path — strengthening its financial position, maintaining profitability, and enhancing its capacity to meet future obligations,” Insurance Commissioner Reynaldo A. Regalado said.
“The overall performance of the industry reflects a positive outlook and strong growth prospects in the market. This is a foundation we aim to build upon in 2026 and in the succeeding years.” — A.M.C. Sy
