THE INSURANCE SECTOR’S whole belongings, net worth, and benefit payouts grew in the first quarter, the Insurance Commission (IC) reported on Thursday.
The IC mentioned in an announcement that knowledge from 129 out of 135 licensed life and nonlife insurers and mutual profit associations (MBAs) confirmed their whole belongings elevated by 12.21% 12 months on 12 months, whereas their whole net worth and whole benefits paid likewise grew by 24.27% and 19.48%, respectively
In actual phrases, whole belongings, net worth, and benefits paid of those three sectors stood at P2.12 trillion, P392.51 billion, and P33.32 billion, respectively, in end-March.
Total invested belongings additionally grew by 9.94% to P1.84 trillion, whereas whole paid-up capital and warranty fund elevated by 9.75% to P75.9 billion.
“Life and nonlife insurers and MBAs are steadily recovering from the adverse economic effects of the pandemic, as evidenced by these numbers for Q1 2022. Moreover, the year-on-year increase in total benefits paid during the same quarter highlighted the continuing commitment and responsiveness of our insurers and MBAs to the needs of the insuring public despite the challenges posed by the pandemic,” Insurance Commissioner Dennis B. Funa was quoted as saying.
The life insurance sector’s belongings grew by 10.94% to P1.65 trillion, which was attributed to the “increase in its segregated fund assets by 22.37%, which comprised more than half or 55.05% of the sector’s total assets.”
While whole liabilities of the life insurance sector rose by 7.77% in the first quarter, its whole net worth grew by 37.26% on the again of a 130.71% enhance in its reserve accounts.
The whole paid-up capital of the sector additionally expanded by 2.74% 12 months on 12 months to P26.6 billion.
Invested belongings of the life insurance sector elevated by 10.19% to P1.59 trillion on the again of investments in monetary belongings at honest worth by revenue or loss, in addition to funding property, which recorded growths of 27.99% and 14.54%, respectively.
However, the industry’s whole premium earnings contracted by 5.51% to P78.61 billion in the first quarter, pushed by a 19.78% decline in single premium variable insurance merchandise and a 19.86% drop in single premium conventional life insurance merchandise.
Premiums from variable life insurance insurance policies, which comprised 75.17% of life insurers’ whole premium earnings, decreased by 9.80% over the earlier 12 months’s gross sales. This was offset by a ten.38% enhance in premiums from conventional life insurance insurance policies.
New business annual premium equal additionally noticed a lower of 1.21%.
The whole net earnings of the life insurance sector additionally declined by 20.85% quarter on quarter, primarily on account of a 5.51% lower in whole premium earnings and a 27.18% enhance in profit funds.
The whole variety of insurance policies rose by 7.6%, whereas whole estimated insured lives went up by 11.08% in the first three months of 2022.
NONLIFE
On the different hand, whole belongings of the nonlife insurance sector rose by 21.31% to P343.46, with 56.42% of it belonging to the prime 10 nonlife insurance firms.
Total liabilities elevated by 26.38% to P222.37, bringing the sector’s cumulative net worth to P121.09, accounting for a 12.35% enhance towards the identical interval final 12 months.
Total invested belongings in the nonlife insurance sector jumped by 9.16% to P138.89 billion in the first quarter, attributed to “the growth in values of the sector’s time deposits, debt securities (bonds) in government, equity securities, investments in property, UITF, and other investments, which accounted for 84.72% of the total invested assets.”
Net premiums written (NPW) additionally recorded an enlargement of 15.45% to P15.59 billion in the first quarter.
“The Fire Insurance line of business saw a huge gain in Q1 2022, rising from P2.45 billion in Q1 2021 to P3.63 billion in Q1 2022, or by 48.03%. The Motor Car line of business, which contributes the most to the total NPW per line of business with 41.32% share increased the sector’s NPW to P6.44 billion in Q1 2022 from P6.14 billion in Q1 2021,” the IC mentioned. “The Aviation line of business is now gradually recovering from a negative P74.10 million in Q1 2021 to P7.70 million in Q1 2022, rising by 110.38%.”
“Except for the Health and Passenger Personal Accident Insurance lines of business, almost all other business lines experienced growth in Q1 2022,” it added.
However, net premiums written of nonlife firms’ well being insurance business dropped to simply P610 million from P1.10 billion 12 months on 12 months as one firm posted a 56.59% decline.
The whole net earnings of nonlife insurers decreased by 9.88% to P1.07 billion in the first quarter as 16 firms reported net losses amounting to P420 billion.
MBAs
Meanwhile, MBAs’ whole belongings elevated by 6.33% to P125.66 billion in the first quarter, with 4 MBAs accounting for 80% of the industry’s whole belongings.
Total invested belongings amounted to P111.85 billion, which is 7.42% higher 12 months on 12 months. The figure can be equal to 89% of MBAs’ whole belongings.
“As in Q1 2021, most of the MBAs’ investments were placed in long-term investments, which stood at P49.27 billion and in loans at P34.08 billion, increasing by 12.05% and 2.80% year on year, respectively,” the IC mentioned.
Total liabilities of MBAs jumped by 5.58% to P74.58 billion on account of “the year-on-year increase in their optional benefit reserve from P22.15 billion to P24.38 billion, which comprises 32.69% of the sector’s total liabilities.”
The sector’s whole fund stability likewise elevated by 7.43% as fairness grew to P51.08 billion from P47.54 billion 12 months on 12 months.
MBAs’ whole premium earnings, or contributions from their members, stood at P3.28 billion in the first quarter, with the prime two MBAs contributing 74% to the whole.
The sector’s aggregated net surplus rose by 13% 12 months on 12 months to P1.39 billion, which the IC mentioned “can be attributed to an 18.53% increase in members’ contributions collected, an increase in net returns from investment by 4.57%, and the decrease in benefit expense by 20.70%, year on year.” — D.G.C. Robles
