Philippine pre-need industry bottom line plunges 53%

Pre-need companies in the Philippines saw their net income nearly halved in the first six months of 2026 as weaker investment income offset strong growth in plan sales, premium collections and assets.

In a statement, the Insurance Commission (IC) said the pre-need industry’s net income dropped by 52.89 percent during the period.

The IC, however, did not disclose the specific amount and has yet to publish the official data on its website as of this writing.

“(The decline was) primarily due to lower investment income amid external factors affecting financial markets,” the regulator said.

“Nonetheless, the pre-need industry remains well-positioned to support the continued development of the market and to meet its obligations to plan holders,” it added.

Other financial indicators, meanwhile, continued to post growth.

Premium income jumped by 11.43 percent to P12.8 billion in the first half of the year from P11.49 billion in the same period last year.

The industry also sold 466,834 plans from January to June, up by nearly 10 percent from a year earlier. The growth in sales was driven by life plans, which accounted for 99.91 percent of the total plans sold during the period.

Total assets likewise rose by 8.87 percent to P183.3 billion from P168.36 billion a year earlier. This was driven mainly by an 8.50-percent increase in investments in trust funds to P157.98 billion from P145.61 billion.

Investments in trust funds accounted for 86.19 percent of the industry’s total assets.

Total liabilities, meanwhile, increased by 7.96 percent to P147.66 billion from P136.78 billion.

Despite this, total net worth grew at a faster pace of 12.84 percent to P35.64 billion.