Pre-need sector books higher premium income

THE PRE-NEED INDUSTRY booked a higher premium income in the first nine months of 2025 on the back of continued asset growth and higher plans sold.

The sector’s premium income grew by 3.92% year on year to P17.52 billion as of end-September, the Insurance Commission (IC) said in a statement on Friday.

“This growth demonstrates the industry’s continued development and consistent performance despite persistent economic challenges. It confirms the industry’s commitment to improving and expanding market reach,” Insurance Commissioner Reynaldo A. Regalado said.

The IC said the sector’s higher premium income led to continued profitability in the period, with its net earnings at P4.96 billion as of the third quarter.

This was supported by the 5.33% expansion in assets to P173.41 billion at end-September from P164.64 billion a year ago, “highlighting the industry’s resilience and positive market performance.”

“A key contributor to this growth was the rise in investments in trust funds, composed of planholders’ payments set up to cover the cost of benefits and services, which account for 85.78% of the industry’s total assets,” it said. These investments increased by 5.84% year on year.

“The industry continues to affirm a strong and healthy financial position, with investments in trust funds remaining more than sufficient to cover future benefit claims. This robust balance reflects the industry’s good fund management, ensuring that obligations to planholders are and shall be fully met.”

Meanwhile, pre-need reserves, which represent the actuarial reserve liabilities established by companies to cover their net obligations to planholders, rose by 5.99% to P134.22 billion at end-September from P126.64 billion a year prior.

As a result, the sector’s total net worth inched up by 1.7% to P31.56 billion.

Total plans sold by pre-need companies increased to 690,064 in the nine-month period from 509,323 a year ago.

“As of the third quarter of 2025, life and memorial plans continued to dominate the industry, accounting for 99.86% of all pre-need plans sold.” Mr. Regalado said.

“These indicators underscore the industry’s sustained growth and market stability,” the IC added. — A.M.C. Sy