MANILA, Philippines – The insurance sector recently disclosed with the Insurance Commission their financial statements for 2016. In aggregate, insurance companies reported a total premium income that barely changed as compared to their previous period’s total premium income. Factors to be blamed for a nominal increase were the poor performance of the local equities during the last quarter of the year and also the continuous decline in sales of the insurance companies.
Data gathered by the commission showed that the total income of the insurance sector from premiums for last year amounted to P231.883 billion. This amount is only 0.29 percent up or a difference of P0.68 billion versus the previous year’s total premium income of P231.203 billion. The aggregate premium income was way below the 2016 premium income target of the commission that ranged P280-P300 billion.
Dennis B. Funa, an Insurance Commissioner, said on Thursday that the flat growth to the continuing decline in premiums of the insurance sector is attributable to the drop in the stock market at the latter part of the year. He added that majority of the life insurance companies reported a decrease in their premium income. Life insurance companies made total premiums of P182.793 billion last year. This is 3.04 percent decrease from the previous period total premiums of P188.531 billion. Mr. Funa, as well, said that the drop is also attributable to the drop in premium production in variable life insurance products, where a portion is invested in the stock market and the rest are single premiums.
The component index significantly dropped in the latter part of the year and later on, slightly recovered. Still, Funa says that overall the stock market had a nose dive and it experienced a lot of volatilities last year.
Non-life insurance companies, on the other hand, managed to grow their aggregate net premium income as it climbed 16.24 percent to P41.6 billion versus their previous year record of P35.8 billion.
Funa declared that seven non-life insurers made a significant rise in net premiums written that ranges from 56.21 percent to 182.65 percent. This contributed much to the overall two-digit increase In the non-life sector.
Total assets of the insurance companies jumped 11.38 percent to P1.3 trillion in 2016 versus previous year’s P1.2 trillion on the bank of the companies’ increase in net assets and a rise from the sector’s total investments.
Life insurance companies’ total assets comprise 81 percent of the insurance sector’s total assets. They reached the P1 trillion mark. Assets grew 11.94 percent bigger by the end of 2016 with a record high of P1.069 trillion from the previous year’s P955.2 billion.