The insurance industry saw its net income soar by 45% to more than PHP14.29bn ($246m) in the first quarter of this year, compared to PHP9.86bn in the corresponding quarter in 2023, according to data from the Insurance Commission (IC).
The results led the share of the sector to the country’s gross domestic product (GDP) to improve to 1.78% in 1Q2024 from 1.75% in 1Q2023.
Of the total PHP14.29bn, life insurance business accounted for PHP9.65bn or 68% of the total. The net result for life business is 50% higher than the PHP6.5bn generated in 1Q2023. The growth was driven by the 12% increase to PHP87.66bn in premium revenue as both variable unit life (VUL) insurance policies and traditional life insurance posted growth.
Non-life market
In contrast, the net result of the non-life insurance segment slid by 4% to PHP2.52bn in the first three months of this year from PHP2.63bn in the corresponding quarter in 2023. This followed a 1.3% dip in non-life premiums earned during the first quarter of this year to PHP15.99bn.
Mutual benefit associations (MBAs) reported a net surplus of PHP2.12bn in 1Q2024, more than double the figure posted in 1Q2023. The MBAs increased their premiums by 3% year on year to PHP3.88bn in 1Q2024. Expenses fell by 28% to PHP1.81bn.
The 1Q2024 insurance data came from the submissions of 129 out of the 132 licensed insurers and MBAs.
Source: www.asiainsurancereview.com
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