Insurance sector shows growth in premiums and net income in 2021

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UNSPLASH

THE INSURANCE INDUSTRY recorded “significant” growth in various performance indicators in 2021, reflecting its recovery from the adverse effects of the coronavirus pandemic.

THE INSURANCE INDUSTRY saw growth in premiums, revenues and benefits paid in 2021, according to data from the regulator.

The Insurance Commission (IC) said in a statement on Thursday that life and non-life insurers and mutual benefit associations (MBAs) were showing “significant” year-on-year growth, based on reports data. unaudited quarterly statements of 130 of the 136 authorized entities.

“Life and non-life insurers and MBAs are recovering from the negative economic effects of the pandemic, as evidenced by these fourth quarter 2021 figures. In addition, the year-over-year increase in benefits paid during of the same quarter highlighted the commitment and responsiveness of our insurers and MBAs to the needs of the insuring public despite the challenges posed by the pandemic,” Insurance Commissioner Dennis B. Funa said in the statement.

Total premium income for life and non-life insurers and MBAs was 374.67 billion pesos in 2021, up 21.55% from 308.25 billion pesos in 2020, according to data from CI.

Broken down, the life insurance sector recorded a 25.24% increase in premium income, from 247.72 billion pesos to 310.24 billion pesos, as variable and traditional life premiums increased by 30.57% and 10.11%, respectively.

“The increase can be attributed to the good performance of variable life insurance single premiums which registered a significant increase of 79.17%. Of the total life insurance premiums, 77.12% came from variable life insurance, while the remaining 22.88% came from traditional life insurance,” Funa said.

Net premiums written in the non-life sector increased by 3.82% to reach 51.19 billion pesos in 2021, due to an increase in automobile premiums, while MBA premiums or contributions increased by 17. 84% to reach 13.24 billion pesos.

Meanwhile, the net income of these three industries increased by 18.57% to 40.72 billion pesos from 48.29 billion pesos.

The total net income of the life insurance sector increased by 29.7% year-on-year to P39.17 billion despite the increase in benefit payments amid a 31.46% increase in the total technical income and increase in capital gains.

On the other hand, the net income of the non-life industry increased by 6.68% to reach 5.53 billion pesos against 5.13 billion pesos.

“The majority of non-life insurance companies posted a net profit for this period. However, compared to 2020 data by company, there were 27 companies whose net profits contracted in 2021. Net losses for the fourth quarter of 2021 are 15.14% higher than the same period last year. last,” Funa noted.

Finally, benefits paid increased by 41.92% to 139.78 billion pesos from 98.49 billion pesos as the pandemic continued.

The assets of these three industries also increased by 8.4% to reach 2,090 billion pesos in 2021, against 1,930 billion pesos a year earlier.

Aggregate life insurance sector assets increased by 7.45% to reach 1,650 billion pesos in 2021, while non-life sector assets increased by 13.68% to reach 318.59 billion of pesos. MBA assets rose 8.18%.

Investments by insurers and MBAs also performed “very well” in 2021, the IC said. Their total invested assets increased by 7.9% to P1.84 trillion last year from P1.7 trillion.

As for other indicators, the total paid-up capital of the life insurance sector increased by 1.06% to reach 26.15 billion pesos in 2021, while its net worth increased by 7.93% from a year to year.

Total policies and estimated insured life of life insurers increased by 10.76% and 5.96%, respectively.

Meanwhile, the net worth of the non-life industry soared 9.45% to 115.64 billion pesos.

Finally, the aggregate net surplus of MBAs decreased by 33.56% year-on-year to reach 3.58 billion pesos in 2021, while liabilities increased by 9.98%. The total balance of their corresponding funds rose to 49.68 billion pesos in 2021, from 47.04 billion pesos a year earlier.

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