MANILA, Philippines — The insurance industry grew both its premiums sold and profit earned by double digits in the third quarter, gaining from the economy’s recovery with the resumption to near full capacity in many sectors.
Based on data from the Insurance Commission (IC), the industry increased its premiums sold by 29 percent to P278.66 billion in the first nine months of 2021 from P216.51 billion a year ago.
Likewise, insurers also expanded their net income by 31 percent to P37.5 billion from P28.62 billion during the period.
On the other hand, IC Commissioner Dennis Funa said insurers expanded their benefit payouts in response to the needs of their clients during the pandemic. Claims paid by insurers rose by over 45 percent to P101.22 billion during the nine-month period in 2021 from P69.75 billion a year ago, according to the IC.
Also, investments made in the industry rose by another 14 percent to P1.78 trillion from P1.56 trillion, reflecting the recovery pace of insurance firms. As such, assets managed by insurers swelled by 12 percent to P2.01 trillion from P1.79 trillion.
“The growth of the life and non-life insurers’ and mutual benefit associations’ aggregate premiums and contributions earned and their aggregate income in the third quarter of 2021 are indicative of economic recovery amid the COVID-19 pandemic,” Funa said.
“Moreover, the year-on-year increase in benefits paid during the same quarter highlighted the commitment and responsiveness of our insurers and MBAs to the needs of the insuring public despite the challenges posed by the COVID-19 pandemic,” he said.
Broken down, premiums sold by life insurers jumped by almost a third to P230.61 billion in the third quarter last year from P173.69 billion in 2020, as they saw an increase in the sales of variable and traditional policies, both in double digits.
Also, profit gained by life insurers grew by more than 39 percent to P29.88 billion in the third quarter of 2021 from P21.44 billion a year ago. The IC attributed the increase to capital gains made by life insurers and the rise in their total underwriting income.
Similarly, non-life insurers saw their premiums sold improve by roughly eight percent to P38.15 billion from P35.46 billion on sales jumps recorded across the board except for the motor car and aviation lines. On the other hand, profit slid by over 10 percent to P4.34 billion from P4.84 billion due to lower net underwriting, as well as capital losses.
For MBAs, premium and contribution income ballooned by almost 35 percent to P9.9 billion, pushing the fund balance to rise as well to P49.5 billion.
MBAs also registered an above 40 percent expansion in their net surplus to P3.28 billio, from P2.34 billion, due to improvements in premium income and gross investment income. By: Elijah Felice Rosales |The Philippine Star