The Philippine pre-need industry saw its collective profit jump more than 50 percent last year as a surge in memorial plan sales offset a narrowing field of players, according to the Insurance Commission.

Insurance Commissioner Reynaldo A. Regalado said in a statement Monday, Feb. 23, that net income for the sector rose to ₱8 billion in January to December last year from ₱5.2 billion in the previous year.

The gains were underpinned by a 5.7 percent increase in total premium income to ₱23.9 billion, driven by a significant improvement in consumer sentiment and higher sales volumes, as the regulator described.

The performance highlights market consolidation, with stricter regulatory oversight leading to a decline in the number of licensed firms even as the remaining players scale up. The number of plans sold climbed 28 percent to nearly 900,000, with life and memorial plans accounting for 99.8 percent of the total volume.

"Strengthened regulatory oversight has positively impacted the industry’s growth by restoring the trust and confidence of both consumers and investors," Regalado said.

The regulator is betting that a more transparent market environment will provide a sustainable foundation for the sector, which has historically faced scrutiny over its long-term viability.

The industry’s financial cushion also expanded as total net worth grew by more than 20 percent to ₱33.9 billion by the end of 2025. Retained earnings, which represent the portion of profit reinvested into the business rather than paid out as dividends, jumped 40% to comprise nearly three-quarters of that total net worth.

Liquidity and the ability to meet future claims remained a focal point of the report. The sector posted ₱211.1 billion in reserves for 2025, creating a ₱16 billion surplus over the ₱195.1 billion required by law. These reserves, which are the industry’s primary financial obligation to plan holders, rose 62.6 percent from the ₱129.8 billion recorded in 2024.

Total assets climbed 8.2 percent to ₱178.2 billion, supported by investments in trust funds. These funds are used to back the sector’s liabilities, which stood at ₱144.3 billion at the end of the year.

Regalado said the industry's performance reflects a positive outlook and serves as a baseline for the regulator's near-term goals of ensuring financial stability across the sector.