Insurance industry assets up 18% to P1.55 trillion in '17

MANILA -- Total assets of the insurance industry rose 17.89 percent year-on-year to PHP1.55 trillion in 2017, up from the PHP1.31 trillion in 2016, Insurance Commission data released Friday show.

Industry premiums totaled to PHP259.65 billion, up 11.97 percent from the previous year’s PHP231.88 billion, IC data showed.

In a briefing, Insurance Commissioner (IC) Dennis B. Funa said robust growth of the Philippines’ equities market in 2017 resulted in a “very good year” for the insurance industry.

The Philippine Stock Exchange index (PSEi) ended 2017 on a high note after finishing at 8,558.42 points. It was the first time last year that the main gauge ended the year at record-high level wile for the whole year it registered 14 times of all-time highs.  It gained 25.1 percent last year.

 "We had a very good year in 2017, very healthy insurance industry. Eventually, it is the government that will benefit because much of the assets of the insurance industry are invested in government bonds and of course a portion of that are also invested in equities and also to thrift banks. This is a very good news for insurance industry in particular and our country in general,” Funa said.

In particular, the life insurance industry’s assets rose 18.28 to PHP1.26 trillion from year-ago’s PHP1.07 trillion, based on submitted unaudited quarter statistics.

Total premiums improved by 10.69 percent to PHP202.34 billion from PHP182.79 billion in 2016.

Funa said the equities sector, which accounts for 60 to 70 percent of the total assets of life insurance industry, played a big factor in the rise of life insurance’s assets.

In another development, the assets of the non-life insurance industry expanded by 18.05 to PHP207.33 billion from year-ago’s PHP175.63 billion.

Premiums totaled to PHP48.56 billion, 16.71 percent higher than the PHP41.61 billion a year ago.

The IC chief traced this performance to the big jump in the sales of motor vehicles, especially in the last quarter of last year.

Mutual benefit associations, under which micro insurance are being offered, registered an 11.57 percent increase in total assets to PHP77.47 billion from year-ago’s PHP69.43 billion.

Total premiums rose 16.89 percent to PHP8.74 billion from PHP7.48 billion in 2016.

Funa projects the sustained improvement of the industry this year, citing in part the latest run-up of the PSEi, which ended Friday on a new record high of 9,041.20 points.

“So far, equities have performed well so that will continue. This will no doubt benefit variable life and of course the life industry in general,” he said.

“For non-life, it’s obvious that (under) the Build, Build, Build program of this administration, the big beneficiary will be the non-life sector. I believe that in terms of its income, (it) will be derived from surety or the bonds sector,” he added. (PNA)