Data released by the Insurance Commission (IC) reveals a robust performance in the Philippine insurance sector during the first quarter of 2024. Net income surged by an impressive 45%, reaching over PHP14.29 billion ($246 million), a substantial increase from PHP9.86 billion recorded in the corresponding period of 2023.
This notable growth has also positively impacted the sector’s contribution to the country’s gross domestic product (GDP), with its share rising to 1.78% in 1Q2024 compared to 1.75% in 1Q2023.
Breaking down the figures, the life insurance segment emerged as a significant contributor, accounting for PHP9.65 billion or 68% of the total net income. This represents a remarkable 50% increase from the PHP6.5 billion generated in 1Q2023. The surge in earnings can be attributed to a 12% rise in premium revenue, reaching PHP87.66 billion, driven by growth in both variable unit life (VUL) insurance policies and traditional life insurance products.
However, the non-life insurance segment experienced a slight setback, with net income sliding by 4% to PHP2.52 billion in the first quarter of 2024, down from PHP2.63 billion in the same period last year. This decline was accompanied by a 1.3% dip in non-life premiums earned, totaling PHP15.99 billion.
Meanwhile, mutual benefit associations (MBAs) reported a significant improvement, with a net surplus of PHP2.12 billion in 1Q2024, more than doubling the figure recorded in 1Q2023. MBAs also saw a 3% year-on-year increase in premiums, reaching PHP3.88 billion, while expenses fell by 28% to PHP1.81 billion.
The data for 1Q2024 is based on submissions from 129 out of the 132 licensed insurers and MBAs, reflecting a comprehensive overview of the industry’s performance during the period.
