The Philippine insurance industry posted a banner year in 2017, as total assets, investments, net worth, net income and premium hit record highs, Insurance Commissioner Dennis Funa said Monday.
Unaudited quarterly statistical reports submitted by industry players to the commission showed that as of end-2017, the industry’s assets reached an all-time high of P1.56 trillion, up 18.95 percent from P1.31 trillion in 2016.
Funa said the life insurance sector held P1.26 trillion or 81 percent of the total assets, while the non-life insurance and mutual benefit association sectors accounted for P221.74 billion and P77.47 billion, respectively.
“The increase in the total assets of the life insurance sector is attributed to the 78.16-percent increase in reinsurance accounts receivables or those amounts collectible arising from reinsurance transactions to P4.65 billion as of end of 2017 from P2.61 billion as of end of 2016, and the 25.40-percent increase in the segregated fund assets during the same comparable period,” Funa said.
He said the growth in total assets of the non-life sector was due to the increase in receivables from reinsurance transactions. Data showed that as of end-2017, the receivables from reinsurance transactions of the non-life sector was P64.12 billion, up 65.3 percent from P38.79 billion a year ago.
Total premium receivables of the non-life insurance sector also increased 28.88 percent to P25.26 billion from P19.60 billion.
“Of the P1.56 trillion total assets of the industry, approximately 85 percent or P1.33 trillion are placed in different classes of investments,” Funa said.
The industry recorded the highest invested funds of P1.33 trillion compared to those reported in recent years. Data showed the industry’s invested assets were mainly investments in government and corporate bonds (47 percent) and in the stock market (29 percent). Julito G. Rada
The industry said the industry’s net worth also hit a record-high of P320.3 billion. The life insurance sector recorded an increase of 19.48 percent in net worth.
The life insurance sector posted a total paid-up capital of P20.6 billion in 2017, up 26.13 percent from the P16.3 billion in 2016. “This is likewise a factor in the growth in the life sector’s net worth,” Funa said.
The non-life insurance’s net worth increased 13.89 percent, attributed to the 25.43-percent increase in the total unassigned surplus/retained earnings and 20.56-percent increase in investment fluctuation reserves.
The mutual benefit association sector posted a 21.76-percent increase in net worth on a 34.05-percent growth in the total unassigned surplus/retained earnings of all licensed MBAs.
“After experiencing a slight decline on revenue in 2016, the industry posted a 50.44-percent increase in net income as of year-end 2017,” Funa said.
He said that while the non-life insurance sector posted a minimal 5.70-percent increase in net income, the life insurance sector posted a significant 55.94-percent increase in revenue.
The industry posted the highest amount of premiums collected as of year-end 2017 amounting to P259.8 billion.
“In 2017, the life insurance sector accounted for 77.94 percent of the industry total premiums or P202.50 billion, while the non-life insurance sector and MBA sector account for 18.70 percent and 3.37 percent, respectively,” Funa said.
The life insurance sector reported an increase of 10.78 percent in premiums collected.