The Philippine insurance industry recorded growth in key performance metrics during the first quarter of 2025 (Q1 2025), according to unaudited data published by the Insurance Commission (IC).
Both insurance penetration and density improved year-over-year, reflecting a broader reach and increased premium contributions relative to economic and population metrics.
Insurance penetration rose to 1.89% of gross domestic product (GDP) as of March 31, 2025, compared to 1.78% in the same period last year. Meanwhile, insurance density increased by 13.4% to PHP1,094.94 per person.
Commissioner Reynaldo Regalado said the improved penetration rate was primarily driven by a stronger rise in premium income compared to the 7.8% nominal GDP growth.
“The growth in insurance density was mainly driven by a rise in total premiums that exceeded the population growth rate of 0.87% during the same period,” he said.
Total premium income across life, non-life, and mutual benefit associations (MBAs) reached PHP124.17 billion, marking a 14.41% increase year-over-year. Despite this growth, benefit payouts declined slightly by 1% to PHP38.86 billion.
Net income for the sector rose 7.09% to PHP15.3 billion. Total assets expanded by 4.13% to PHP2.48 trillion, while invested assets increased by 3.44% to PHP2.19 trillion.
Liabilities reached PHP1.98 trillion, and net worth rose by 8.6% to PHP497.23 billion. Paid-up capital and guaranty funds were also up 1.82%, totalling PHP86.21 billion.
Life insurers saw their assets grow 3.58% to PHP1.93 trillion. Invested assets rose 3.17%, mainly due to increases in traditional and segregated fund investments.
Premium income jumped by 13.96% to PHP99.90 billion.
Variable life products, which contributed nearly 68% of premiums, recorded a 22.78% rise, while traditional life premiums contracted slightly.
Regalado noted that the increase in variable premiums was largely due to a 53.68% jump in single-premium products. The New Business Annual Premium Equivalent (NBAPE) rose 12.92% to PHP18.86 billion.
Life insurers’ net income improved by 12.22% to PHP10.83 billion, supported by reduced benefit payments and stable underwriting costs. Investment income fell by nearly 46%, although this was offset by a 15.18% rise in underwriting income.
Total assets for non-life insurers stood at PHP381.66 billion, a 4.88% rise from the previous year. Invested assets rose by nearly 5% to PHP187.29 billion, with held-to-maturity investments increasing by 18.88%. These made up a combined 71.36% of the sector’s investment portfolio, alongside time deposits and available-for-sale instruments.
Net premiums written surged 19.35% to PHP20.27 billion. Motor car insurance accounted for the largest share, with PHP7.97 billion, while fire insurance premiums reached PHP3.81 billion after a 21.91% year-on-year increase.
The non-life industry’s net income climbed 14.63% to PHP2.89 billion, supported by higher premiums and improved underwriting margins.
Assets held by MBAs rose to PHP166.38 billion, up 9.04%. Invested assets, comprising nearly 88% of total assets, grew to PHP146.33 billion.
However, net surplus declined by 25.21% to PHP1.59 billion, due to increased liabilities on individual equity values and higher operational expenses.
Regalado said the decline in surplus was also affected by a slight contraction in gross investment income. Despite this, MBAs saw a 7.54% rise in fund balances to PHP67.32 billion and a 2.89% increase in premium contributions.
Health maintenance organisations (HMOs) reported a dramatic rise in net income to PHP579.39 million, from PHP6.78 million in Q1 2024.
The surge was attributed to a 26.15% increase in membership collections, spurred in part by a government subsidy offering public employees a PHP7,000 medical allowance.
The Philippine insurance market continues to grow amid regulatory changes.
In early 2025, the Philippine Competition Commission raised thresholds for mandatory merger and acquisition reviews. The size of party (SOP) limit now stands at PHP8.5 billion, and the size of transaction (SOT) threshold is PHP3.5 billion, reflecting GDP-based recalibrations.
The IC also issued a new investment framework under Circular Letter No. 2025-09. The updated rules simplify investment procedures for insurance entities and MBAs, allowing investments in a wider range of instruments, including structured debt and supranational bonds, without requiring prior approval for eligible assets.
