Philippines pre-need insurers post premium income surge

600,000 plans sold by end of Q3

Philippines pre-need insurers post premium income surge

Insurance News

By Kenneth Araullo

In the third quarter of 2023, pre-need companies in the Philippines reported a significant increase in their financial performance, according to the latest data from the Insurance Commission.

Total premium income reached ₱16.70 billion ($299.93 million), marking an 8.28% rise from the ₱15.43 billion ($277.12 million) recorded in the same period last year. This growth was attributed to the heightened sale of pre-need plans, with approximately 600,000 plans sold in the first three quarters of the year, a 12.83% increase compared to the same period in 2022. The majority of these plans were memorial plans.

In a notable turnaround, the pre-need industry reported a net income of ₱1.79 billion ($32.15 million), recovering from a net loss of ₱7.11 billion ($127.70 million) during the same period in the previous year. This loss was primarily due to substantial benefit payments for pre-need policies.

Managing more benefit claims

The industry also demonstrated increased capacity to manage benefit claims. Investment in trust funds by pre-need companies amounted to ₱124,232.20 billion ($2.23 billion), while pre-need reserves, set aside for benefit payments and benefits already payable, stood at ₱119,136.30 billion ($2.14 billion). This resulted in a trust fund surplus of ₱5.09 billion ($91.42 million), a substantial 380% increase from the previous year's third quarter.

Investments in Trust Funds

Pre-Need Reserves


₱124,232.2 million

₱119,136.3 million

₱5,095.9 million


Financial stability indicators also showed positive trends, with the total net worth of the pre-need industry reaching ₱21.65 billion ($388.83 million), a 42.53% increase from the same quarter in the previous year. Twelve pre-need companies reported net worth increases, with one company's net worth surging by 2,000%.

This overall growth in the industry's financial health is further supported by a 9.76% increase in total assets, which amounted to ₱147.86 billion ($2.66 billion). Four pre-need companies alone reported at least a 10% growth in total assets. The comparative figures for total assets, liabilities, and net worth are presented below:

Q3 2023 (₱ million)

Q3 2022 (₱ million)

% Increase/Decrease

Total Assets: 147,859.8



Total Liabilities: 126,208.1



Total Net Worth: 21,651.7




The Insurance Commission based these figures on financial submissions from 18 pre-need companies, including those with existing licenses or pending renewal applications. The exception is Caritas Financial Plans, Inc., which was placed under conservatorship in July 2023.

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