Preneed industry grew in Q3 despite challenges
The country’s preneed industry posted a modest growth in the third quarter of the year despite ongoing economic pressures as households continued to buy life and memorial plans, the Insurance Commission (IC) reported.
In its latest report, the IC said total premium income increased by 3.92 percent to reach P17.52 billion as of the end of September.
“This growth demonstrates the industry’s continued development and consistent performance despite persistent economic challenges. It confirms the industry’s commitment to improving and expanding market reach,” IC Commissioner Reynaldo Regalado said.
The number of new plans sold during the period rose to 690,064 from about 500,000 in the same period last year, nearly all coming from life and memorial plans.
This robust sales performance helped boost the industry’s net income to P4.96 billion, which the IC said reflected continued profitability supported by rising premium income.
Trust funds
The IC’s report was based on financial submissions from 13 preneed companies with either existing licenses or pending renewal applications.
Further, investments in trust funds grew 5.84 percent, accounting for 85.78 percent of the industry’s total assets. This contributed to total assets climbing to P173.41 billion from P164.64 billion last year.
“This robust balance reflects the industry’s good fund management, ensuring that obligations to plan holders are and shall be fully met,” IC said.
Lastly, the preneed industry’s total net worth stood at P31.56 billion during the quarter, marking a 1.70 percent increase year-on-year.
