Philippines’ insurance industry expands 9.38% YoY in Q3

Both its life and non-life insurance segments saw double-digit growth in earnings.

In the third quarter of 2023, the net income of life and non-life insurance companies, as well as mutual benefit associations (MBAs), witnessed a notable year-on-year (YoY) increase of 9.38%. 

According to the latest data from the Insurance Commission, the overall net income of the insurance industry reached $690m by the end of the third quarter of 2023, marking a 9.38% rise compared to the $630m recorded for the same period in 2022.

Specifically, the net income of the life insurance industry saw a robust growth of 10.32%, reaching $520m. Similarly, the non-life insurance industry experienced substantial growth, with net income increasing by almost 15% to $99m. 

However, MBAs faced a slight decline of 3.05% in net income YoY, primarily attributed to a significant rise in Total Underwriting Expenses, reaching $170m n in the third quarter of 2023, which is 32.72% higher than the figures from the corresponding period the previous year.

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The upswing in the insurance industry's net income can be linked to heightened premium collections by both life and non-life insurance companies. Life insurance companies collected total premiums of $4.15b in the third quarter of 2023, with $840m considered as new business, reflecting a growth of 13.93% from the same period the prior year.

Non-life insurance companies reported total net premiums written of $870m during the same period, marking a 15.56% increase from the previous year. Even MBAs recorded higher total contributions, reaching $210b, which is 7.43% higher than figures from the third quarter of the previous year.

Data for the third quarter of 2023 also highlighted the continuous growth of the insurance industry in terms of assets, invested assets, and net worth. Total assets and net worth experienced an almost 10% YoY growth, while total invested assets increased by almost 15%.

(Php1.00 = $0.018)