THE INSURANCE industry saw its premiums increase by 2.36% to P389.62 billion in 2023 as all sectors saw higher collections, the sector’s regulator said on Wednesday.
Life insurers saw their premium collections rise by 0.15% to P309.99 billion, the Insurance Commission (IC) said in a statement.
Broken down, premiums collected from traditional life insurance products rose by 11.52% to P105.19 billion, while premiums collected from variable life insurance products dropped by 4.84% to P204.8 billion.
Meanwhile, nonlife insurance companies also posted higher net premiums at P64.24 billion, up by 12.9% from the previous year.
Mutual benefit associations (MBA) saw total contributions increase by 8.29% year on year to P15.38 billion.
The insurance industry posted a combined net income of P48.46 billion last year, up by 3.8% from the 2022 level.
This was driven mainly by the nonlife sector, which saw its net profit grow by 30.07% to P9.107 billion from P7.001 billion, the IC said.
Benefit payments by nonlife insurance companies also increased by 18.85% to P26.10 billion.
Meanwhile, the net income of life insurers slipped by 0.72% to P33.631 billion in 2023 from P33.875 billion.
The net earnings of MBAs likewise declined by 1.55% to P5.727 billion from P5.817 billion.
Benefit payments by life insurance companies and MBAs also decreased by 3.8% and 25.41%, respectively.
The insurance industry’s combined assets rose by 8.02% to P2.31 trillion in 2023 from P2.14 trillion the year prior, while liabilities grew by 9.31% to P1.85 trillion.
The sector’s total net worth increased by 3.13% to P460.78 billion from P446.81 billion. Total paid-up capital and guaranty fund was at P84.01 billion, up by 3.34% year on year.
Total invested assets stood at P2.05 trillion, rising by 12.47% from P1.83 trillion a year prior.
Insurance density, or the amount of premium per capita or the average spending of each individual on insurance, rose by 1.45% to P3,450.97 from P3,401.60.
Meanwhile, insurance penetration, or premium volume as a share of gross domestic product or the contribution of the sector to the economy, went down to 1.6% from 1.73%.
HMO INDUSTRY POSTS BIGGER NET LOSS
Meanwhile, the health maintenance organization (HMO) industry incurred a net loss of P4.269 billion in 2023 due to higher spending on benefits and taxes, the IC said in a separate statement.
This was bigger than the P1.433-billion net loss recorded in 2022.
Data from the IC’s website showed 14 out of 27 HMOs incurred net losses in 2023.
Healthcare benefits released by HMOs in 2023 amounted to P55.46 billion, up by 26.23% from P43.93 billion a year prior.
Meanwhile, total revenues rose by 16.36% year on year to P66.89 billion. Of this amount, P64.94 billion came from memberships, enrollees, and administrative or service only fees. This was a 16.23% rise from P55.87 billion in 2022.
The HMO industry’s assets rose by 8.98% to P60.66 billion, while liabilities increased by 13.38% to P50.41 billion.
Meanwhile, total equity decreased by 8.48% to P10.25 billion.
Total invested assets went down by 1.12% to P16.64 billion amid a decrease in financial assets, investments in subsidiaries, associates and joint ventures, and investment property. — : By: A. M. C. Sy – BusinessWorld
