Life insurance premiums jumped 18%
Life insurance companies in the Philippines saw their premium collections jump nearly 18 percent in the first six months of the year as the industry continued to expand across key financial indicators.
Latest data from the Insurance Commission (IC) showed total premiums rose 17.91 percent to P229.98 billion from January to June, from P195.05 billion in the same period last year.
Benefit payments, however, grew at a faster pace, climbing 19.57 percent to P69.21 billion from P57.88 billion a year earlier.
Still, the industry posted higher profits during the period, with net income rising 3.42 percent to P21.42 billion from P20.72 billion last year.
“These figures indicate the continued stability and resilience of the life insurance industry,” the IC said in a statement on Monday.
“Despite the financial challenges encountered earlier this year, the industry demonstrated its capacity to withstand financial shocks while continuing to meet its obligations to policyholders and beneficiaries,” it added.
Variable life products accounted for the bulk of premium collections, generating P150.03 billion during the first half, up 14.8 percent from P130.69 billion a year earlier.
Variable life insurance products generally combine life insurance coverage with an investment component, with the policyholder’s premiums partly allocated to investment funds.
Of the premiums collected from variable life products, P10.3 billion came from first-year premiums, P87.3 billion from single premiums and P52.4 billion from renewal premiums.
Traditional life insurance products, which provide life coverage without an investment-linked component, also recorded stronger collections during the period.
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