The insurance industry in the Philippines has witnessed a substantial surge in net profits during the first quarter of this year, marking a remarkable 45% increase compared to the same period in 2023. According to data released by the Insurance Commission (IC), the net income soared to over PHP14.29 billion ($246 million), a significant jump from PHP9.86 billion recorded in the corresponding quarter last year.
This robust performance has contributed to a notable uptick in the sector’s contribution to the country’s gross domestic product (GDP), with its share rising to 1.78% in the first quarter of 2024, up from 1.75% in the first quarter of 2023.
Breaking down the figures, the life insurance business emerged as a major driver of this growth, accounting for PHP9.65 billion or 68% of the total net income. This represents a remarkable 50% increase from the PHP6.5 billion generated in the first quarter of 2023. The surge in profits can be attributed to a 12% rise in premium revenue, reaching PHP87.66 billion, driven by growth in both variable unit life (VUL) insurance policies and traditional life insurance.
In contrast, the non-life insurance segment experienced a slight setback, with net profits sliding by 4% to PHP2.52 billion in the first three months of this year, down from PHP2.63 billion in the same period last year. This decline followed a 1.3% dip in non-life premiums earned during the first quarter of 2024, amounting to PHP15.99 billion.
Meanwhile, mutual benefit associations (MBAs) reported a robust net surplus of PHP2.12 billion in the first quarter of 2024, more than doubling the figure posted in the first quarter of 2023. MBAs also witnessed a 3% year-on-year increase in premiums, reaching PHP3.88 billion, while expenses saw a significant 28% decrease to PHP1.81 billion.
The data for the first quarter of 2024 was compiled from the submissions of 129 out of the 132 licensed insurers and MBAs, providing a comprehensive overview of the industry’s performance during this period.
