MANILA, Philippines - Prudential Guarantee and Assurance Inc. has recorded premium income of P2.729 billion and P2.665 billion in net written premiums in 2012.
This marked the first time the Coyuito-led insurer topped the two categories. Malayan Insurance, however, remains the leader in gross written premiums (GWP) terms.
When a customer purchases an insurance product, the cost for a specified term of the policy is called the premium.
GWP pertains to total premium written and assumed by an insurer before deductions for reinsurance and ceding commissions.
Net written premium are premiums less the deductions for commissions and ceded reinsurance.
Premium income refers to revenues that an insurer receives as premiums paid by its customers for insurance products.
At the end of 2012, there were 81 licensed non-life insurance companies, also referred to property and casualty (P/C) insurance firms, but the number has been “dwindling†due to the ongoing consolidation of the embattled industry.
Roughly 50 percent of annual business in the non-life sector is controlled by the top 10 non-life firms, and the top 20 account for nearly 80-percent of all premiums.
The top 10 non-life insurers last year (in all categories combined, in alphabetical order) are: AIG Philippines Insurance Co. (formerly Chartis Phils. Inc.), BPI/MS Insurance Corp., Charter Ping An (formerly Philippine Charter Insurance Corp.), Federal Phoenix Assurance Co. Inc., Malayan Insurance, MAPFRE Insular Insurance Corp., Pioneer Insurance & Surety Corp., Prudential Guarantee, Standard Insurance Co. Inc., and UCPB General Insurance Co. Inc.
Total amount of premiums earned by the non-life insurance industry totaled P25.919 billion in 2012, representing an increase of approximately P1.4 billion, or 5.72 percent compared to the previous year.
Gross premiums written were valued at P50.3 billion, down 4.5 percent from the P52.7 billion in 2011.
Thus, net premiums written fell by 10.8 percent to P23.1 billion in 2012, from the P25.9 billion in the previous year.
Premiums earned also fell 2.5 percent to P23.9 billion last year, from the P24.5-billion in 2011.
Total paid up capital inched higher to P21.1 billion last year from the P20 billion in 2011 as the non-life insurers complied with the minimum required capital level.
Investments grew by nearly 14 percent to P58.8 billion.