THE PRE-NEED industry’s premium income inched down by 0.35% year on year at end-June amid lower sales of plans, based on Insurance Commission (IC) data.
The industry’s premium income stood at P11.17 billion in the first semester, slipping from the P11.21 billion recorded in the comparable year-ago period, according to IC data based on interim financial statements submitted by 17 companies.
Despite this, the sector’s combined net income rose by 52.06% to P2.88 billion at end-June from P1.89 billion a year prior.
IC data showed nine of out of 17 pre-need companies were in the black during the period, while the rest posted net losses.
Plans sold by pre-need firms declined by 21.76% to 327,841 in the first half from 419,044 a year ago.
Majority of these were life plans at 327,489 (down 21.77% year on year from 418,605), followed by pension plans (26.34% lower than 429 in 2023) at 316 and education plans at 36 (up from 10 last year).
Meanwhile, the sector’s combined investment in trust funds increased by 6.17% to P133.11 billion at end-June from P125.37 billion.
Pre-need reserves, which include benefit obligations or payables as mandated by the Pre-Need Code, rose by 5.69% year on year to P125.28 billion in the first half from P118.53 billion last year.
As a result, the difference between the combined trust funds and pre-need reserves of companies stood at a P7.83-billion surplus at end-June, 6.17% wider than the P6.83-billion surfeit a year prior, the IC’s report showed.
Meanwhile, the pre-need industry’s total net worth grew by 9.87% year on year to P24.9 billion at end-June from P22.67 billion, driven mainly by the 18.48% rise in retained earnings to P15.64 billion.
Firms’ combined capital stock also inched up to P4 billion from P3.994 billion, while other net worth accounts went down to P5.26 billion from P5.47 billion.
On the other hand, the sector’s total assets rose by 5.52% to P157.02 billion from P148.8 billion in the same period last year.
Total liabilities increased by 4.74% to P132.11 billion from P126.13 billion.
Based on the IC report, in terms of premium income, St. Peter Life Plan, Inc. was the top performer with P10.59 billion as it sold a total of 322,667 plans with a total contract price of P18.96 billion in the second quarter.
This was followed by Philplans First, Inc., which recorded a premium income of P411.04 million in the period, selling 1,477 plans worth P411.64 million.
Rounding out the top three was Eternal Plans, Inc., which posted a premium income of P62.73 million.
Meanwhile, in terms of net income, St. Peter Life Plan also ranked first with P3.2 billion, followed by Manulife Financial Plans, Inc. with P28.93 million and Eternal Plans with P15.17 million, according to the data. — Aaron Michael C. Sy
