MANILA, Philippines - The country’s life insurance industry reported P157.8 billion in total premium income last year, 7.81 percent lower than the P171 billion recorded in 2013, based on initial data released by the Insurance Commission (IC).
IC commissioner Emmanuel F. Dooc said the life insurance industry’s weak performance was due mainly to a huge drop in single-premium income and first-year premiums.
However, Dooc said most life insurers reported strong fourth quarter performance.
“That (fourth quarter sales) will serve as a momentum for a stronger 2015,” he said on the sidelines of the formal induction ceremonies of the Philippine Life Insurance Association (PLIA).
Net income, however, improved a little over eight percent from P13.8 billion in 2013 to P14 billion last year.
Paid-up capital reached a record P14.4 billion last year from P13.8 billion in 2013.
Dooc said that the life insurance industry paid total taxes last year worth P6 billion, of which P3.9 billion consisted of corporate income tax.
Of the total premiums, the bulk was accounted for by variable unit-linked (VUL) insurance worth P107 billion and over P50 billion in traditional insurance.
New policies issued reached 4.073 million. Total sum assured amounted to P4.7 billion last year, or an increase of 32 percent from the P3.5 billion in 2013.
Total number of insured at the end of 2014 stood at 19.1 million from 14.6 million in 2013.
Industry net worth grew 7.53 percent to P122 billion last year from P113 billion in 2013.
Total insurance industry assets reached a record P1.015 trillion as of end-2014, or 13.84 percent higher than the P891 billion in 2013.