THE insurance industry’s net income in the third quarter rose by 9.37 percent to P38.28 billion from P35 billion last year as premiums collected by life and non-life insurance firms continued to expand, the Insurance Commission (IC) said.
The IC said the combined net income of life and non-life insurance companies as well as mutual benefit associations (MBAs) expanded by P3.28 billion during the July to September period.
The IC attributed the increase to expansion in the net income posted by life and non-life insurance sectors, outpacing the decline in the net income of mutual benefit associations (MBAs).
“The increase in net income of the insurance industry could be attributed to the increase in premium collection by both life and non-life insurance companies,” the IC said in a statement on Wednesday.
IC data released last Wednesday showed that the net income of the life insurance companies rose by 10.32 percent year-on-year (Y-o-Y) to P28.79 billion from P26.1 billion last year.
The life insurance companies accounted for the bulk or about 75 percent of the total net income of the country’s insurance industry, based on IC data. The net income of the non-life insurance companies grew by 15 percent to P5.48 billion from P4.76 billion.
Only the MBAs sector experienced a 3.05-percent decline in its net income Y-o-Y due to a “significant increase in total underwriting expenses,” according to the IC.
The net income of the MBAs declined to P4.01 billion from P4.14 billion last year, based on IC data.
IC said the MBA sector’s underwriting expenses rose by 32.72 percent on an annual basis to P9.64 billion in the third quarter of the year.
In terms of premium collections, life insurance companies have collected a total of P229.89 billion in the third quarter with P46.57 billion of which being considered as a new business.
“Non-life insurance companies registered total net premiums written of P48.21 billion as of the said period, which is 15.56 percent higher than total net premiums registered during the same period last year,” the IC said.
“Even MBAs registered higher total contributions of P11,494.4 billion, which is 7.43-percent higher than figures during the same period last year,” the industry regulator added.
IC data also showed that the insurance industry’s total assets in the third quarter rose by almost 10 percent to P2.23 trillion from P2.028 trillion last year.