The Insurance Commission (IC) on Monday reported record growth for the insurance industry in 2017, with premiums increasing 11.97 percent to P259.8 billion, from P231.8 billion in 2016.
Insurance Commissioner Dennis B. Funa said: “In 2017 the life-insurance sector accounted for 77.94 percent of the industry total premiums, or P202.50 billion, while the nonlife insurance sector and MBA [mutual benefit association] sector accounted for 18.70 percent and 3.37 percent, respectively.”
Based on the unaudited quarterly statistical report as of December 31, 2017, submitted by all industry players, the life-insurance sector reported an increase of 10.78 percent in premiums collected to P202.50 billion as of end 2017, from P182.79 billion in 2016.
“From total premiums generated by the life-insurance sector, 74 percent were generated from the sale of variable life-insurance products. In fact, premiums collected from variable life-insurance products increased by 12.29 percent, while premiums collected from traditional life-insurance products increased by 6.83 percent,” he added.
The industry’s assets reached an all-time high of P1.56 trillion as of end of 2017, representing 18.95-percent growth from P1.31 trillion recorded in 2016.
The life-insurance sector holds P1.26 trillion, or 81 percent, of the industry’s total assets, while the nonlife insurance sector and MBA sector hold P221.74 billion and P77.47 billion, respectively.
“The increase in the total assets of the life-insurance sector is attributed to the 78.16-percent increase in reinsurance accounts receivables or those amounts collectible arising from reinsurance transactions to P4.65 billion as of end of 2017, from P2.61 billion in 2016. The growth in total assets of the nonlife sector is due to the increase in receivables from reinsurance transactions,” he said.
As of year-end 2017, the receivables from reinsurance transactions of the nonlife sector reached P64.12 billion compared to P38.79 billion in 2016, representing an increase of 65.31 percent.
The industry’s invested assets are mainly composed of investments in government and corporate bonds, which is approximately 47 percent, and in the stock market which is approximately 29 percent of the total invested assets.
In terms of net worth, the industry posted P320.3 billion for 2017, which showed 18.14-percent increase from P271.1 billion in 2016.
The life-insurance sector posted a total paid-up capital of P20.6 billion in 2017, or 26.13 percent better than the P16.3 billion in 2016. This is, likewise, a factor in the growth in the life sector’s net worth, the IC said.
The nonlife insurance’s net worth increased by 13.89 percent, while the MBA sector posted a 21.76-percent hike in net worth.