October 24, 2024 | 12:00am
MANILA, Philippines — The pre-need industry saw its net income jump by more than 50 percent to P2.9 billion in the first semester even amid a decrease in the number of life plans sold, the Insurance Commission (IC) said.
Latest data from IC showed that the industry’s net income reached P2.88 billion from January to June, 52 percent higher than the P1.89 billion in profit in the same period last year.
This even as the premium income of the sector slightly declined by 0.35 percent to P11.17 billion following the 22 percent drop in the total number of plans sold.
The industry sold 327,841 pre-need plans, 22 percent lower than the 419,044 sold in the first semester of 2023.
Life plans accounted for the bulk or 99 percent of total pre-need plans, which also registered a 22 percent drop in the number of plans sold.
The remaining 316 were pension plans, which slipped by 26 percent from the 429 sold the year prior. Education plans, however, more than tripled to 36 plans sold.
Further, the IC noted that investments in trust funds grew by 6.17 percent to P133.11 billion while pre-need reserves rose by 5.6 percent to P125.28 billion.
As mandated by the pre-need code, pre-need providers keep a reserve to cover benefit payables.
On the other hand, the IC said the difference between investment in trust funds and pre-need reserves rose by 15 percent to P7.83 billion from P6.83 billion in 2023.
With these, the industry saw its asset base increasing to P157.02 billion while liabilities increased by 4.7 percent to P132.11 billion.
Similarly, total net worth went up by almost 10 percent to P24.9 billion.
Latest pre-need figures covered a total of 17 firms, slightly lower than the 18 in 2023. Of the total, 13 are licensed, two are servicing companies and two have pending license applications.
St. Peter Life Plan Inc. sold the most number of life plans at 322,667 with a contract price of P18.76 billion. It recorded the largest net worth of P19.02 billion and earned P3.2 billion as of end-June.
Cosmopolitan Climbs Life Plan Inc. came in second in terms of life plans sold at 1,936 worth P104.38 million.
Diamond Memorial Care Plans Inc. issued 941 plans worth P62.96 million while Golden Future Life Plan signed off 336 valued at P34.7 million.
Seven of the 17 firms, which disclosed their financial status incurred a net loss in the first half.
These are Philplans First Inc. (P379.08 million), Cosmopolitan Climbs Life Plan Inc. (P5.16 million), AMA Plans Inc. (P4.25 million), First Union Plans Inc. (P1.68 million), Mercantile Care Plans Inc. (P1.42 million), Goodlife Plans Inc. (P980,000) and Diamond Memorial Care Plans Inc. (P670,000).
Only PhilPlans sold pension plans in the six-month period, releasing 316 worth P237.61 million.
The industry also sold education plans, via PhilPlans, with 36 valued at P12.1 million as face-to-face learning went back to normal.
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