The Insurance Commission reported that the premium income of insurers in the country jumped by double digits in the second-quarter, an indication of the country’s economic recovery from a prolonged pandemic.
In a statement, Insurance Commissioner Dennis B. Funa said on Tuesday, Oct. 26, that the industry’s total premiums earned increased 37 percent to P187.13 billion in April to June 2021 from P136.1 billion in the same period last year.
During the quarter, the life insurance sector posted a 44 percent growth in premium income to P155.8 from P107.98 billion a year ago.
Of the total premiums generated, 78 percent was contributed by variable life insurance premiums while the remaining 22 percent was traditional life insurance premiums.
Meanwhile, net premiums written (NPW) by non-life insurance sector grew 12 percent to P25.5 billion in the second-quarter from P22.6 billion in the same period last year.
Funa said almost all lines of non-life insurance business have expanded last quarter, except for accident, which decreased by one percent, and aviation, which contracted by a staggering 140 percent.
Motor car business still had the highest contribution per line of business, with a 43.51 percent share in the total NPW.
Moreover, premium income of mutual benefit associations (MBA) grew 18 percent to P6.4 billion from P5.45 billion a year ago.
In the quarter ending June, the insurance industry’s total net income and benefits paid likewise increased by 29.39 percent and 46.73 percent.
Aggregate investments also grew 12 percent from P1.5 trillion to P1.7 trillion.
In addition, total assets increased by 10 percent year-on-year from P1.79 trillion to P1.98 trillion.
“The growth of the life and non-life insurers’ and MBAs’ aggregate premiums and contributions earned and their aggregate net income in second-quarter 2021 are indicative of economic recovery amid the COVID-19 pandemic,” Funa said.