Data released by the Insurance Commission revealed that the sector’s net income decreased from P9.95 billion in the previous year to P9.86 billion.
The average spending of individuals on insurance, also known as insurance density, saw a one percent decrease from P881.49 to P872.56.
Furthermore, the sector’s contribution to the country’s gross domestic product (GDP) dropped to 1.75% compared to nearly two percent in the first quarter of the previous year.
Breaking it down further, the life insurance segment experienced a 12.87 percent decline in net earnings, totaling P6.5 billion, primarily due to lower premium income, especially in single premiums for variable life insurance products.
On the other hand, investments in the insurance sector showed improvement, rising by 3.21% to reach P1.64 trillion, while assets increased by 3.3% to P1.71 trillion.
According to the Insurance Commission, benefit payments saw a meager increase of 0.99% reaching P25.97 billion.
In contrast, the net income of the non-life insurance segment more than doubled, rising from P1.11 billion to P2.63 billion.
Investments in the non-life segment grew by 7.61%, reaching P150.61 billion, while assets climbed by 7.85% to P373.16 billion. The majority of investments were directed towards debt securities in both the government and private sectors, time deposits, investment property, mutual funds, and real estate investment trusts, among others.
Mutual benefit associations (MBAs) reported a 15% increase in premiums, reaching P3.78 billion, although expenses rose by 21% to P2.51 billion.
Overall, the non-life segment’s net surplus narrowed by 47% to P731 million.
In total, the combined assets of the three segments experienced modest improvement, reaching P2.22 trillion, while total benefits paid increased by five percent to P35.03 billion.
The first-quarter insurance data was gathered from submissions by 130 out of the 136 licensed insurers and MBAs.
