The Philippine life insurance sector experienced significant growth in the fourth quarter (Q4) of 2024, while the non-life insurance sector reported a decline, according to data from the Insurance Commission.
The life insurance sector’s total assets surged by 7.30% year-on-year (YoY) to reach $32.64 billion (₱1.92 trillion) as of Q4 2024. This increase was driven by a 4.93% rise in Traditional Fund Assets and a 9.10% increase in Segregated Fund Assets. Despite the rise in assets, total liabilities grew by 8.20% YoY, primarily due to a 9.14% increase in Segregated Fund Liabilities and a 7.03% increase in Aggregate Reserves. The sector’s net worth saw a modest gain of 2.33% YoY.
Life insurance premium income also performed well, rising by 13.56% YoY to $5.99 billion (₱352.02 billion). The sector’s net income reached $580 million (₱33.63 billion), a remarkable increase fueled by a 77.58% YoY rise in Miscellaneous Income and a 94.0% jump in Gains from the Sale of Investments.
In contrast, the non-life insurance sector’s performance was less favorable. While total assets increased slightly by 0.73% YoY to $6.37 billion (₱374.49 billion), total liabilities decreased by 0.68% YoY to $4.08 billion (₱240.20 billion). The sector’s net worth grew by 3.35% YoY to $2.28 billion (₱134.30 billion).
The non-life sector saw a 4.48% YoY increase in total invested assets, which reached $3.15 billion (₱185.00 billion). This growth was largely driven by a 10.34% rise in Available-for-Sale Financial Assets, contributing an additional $90 million (₱5.46 billion).
Non-life insurance premiums also saw an increase, with Net Premiums Written rising by 10.49% YoY to $1.22 billion (₱71.84 billion). The Motor Car line, representing 40.17% of Net Premiums Written, grew by 6.28% to $490 million (₱28.86 billion), while the Fire insurance line, comprising 16.64% of Net Premiums Written, saw a 12.44% increase.
However, the non-life sector experienced a decline in net income, which dropped by 2.63% YoY to $160 million (₱9.13 billion). This decline was mainly attributed to a 3.68% YoY decrease in Underwriting Gains, as underwriting expenses outpaced income growth. Additional factors contributing to the contraction included a 7.47% YoY rise in General and Administrative Expenses and a 34.12% YoY increase in Provision for Income Taxes.
As of the close of Q4 2024, the life insurance sector demonstrated robust growth, while the non-life sector faced challenges in maintaining profitability amidst rising costs.
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