INSURANCE INDUSTRY…
the amount of P19.80 billion, its total net income still posted a remarkable 42-percent increase.
Just like its life counterpart, the nonlife’s total net worth increased by 16.05 percent, indicating preparations for the incoming increase in net worth requirement. Currently, there are 57 licensed non-life insurers but mergers and acquisitions are in progress.
Lastly, the MBAs posted a positive performance across all indicators. Total assets increased by 17.26 percent from P83.64 billion in 2018 to P98.08 billion in 2019. Total fund balance and total investments also increased by 19.26 percent (P33.85 billion in 2018 to P40.37 billion in 2019) and 16.96 percent (P75.8 billion in 2018 to P88.65 billion in 2019), respectively.
The pre-need industry has registered a mixture of positives and negatives for its performance indicators for the third quarter of 2019 compared to the same period in 2018. Although there was a decline by 16.67 percent in the number of companies from 2018 to 2019, the industry still had a positive 7.04-percent increase in its total assets from P119.85 billion in 2018 to P128.29 billion in 2019. The total net worth also significantly increased by 51.89 percent from just P11.42 billion in 2018 to P17.34 billion for the same period in 2019. The increase in total net worth is largely due to the 125.45-percent increase in retained earnings and 42.39-percent increase in revaluation reserve.
Funa noted that there are two new players who joined the pre-need industry in 2019 — Diamond Memorial Life Plan and Golden Future Life Plan.
The collective assets of the life insurance, non-life insurance and Mutual Benefit Associations (MBA) sectors have reached a record-high of P1.74 trillion, indicating a growth of 12.30 percent compared to that posted in the same quarter of 2018.
The Health Maintenance Organizations (HMO) showed a similar trend as the pre-need industry had some ups and downs in the different performance indicators. There are still 28 HMOs excluding three companies that haven’t submitted their quarterly financial reports. These HMOs had a considerable increase in capital stock from P2.64 billion in 2018 to P4.36 billion in 2019, a huge 65.46-percent increase. The capital stock contributed 65.65 percent of the total equity for HMOs, which exhibited an increase of 7.65 percent from P6.17 billion in 2018 to P6.65 billion for the same quarter in 2019.
“The reporting is expected to become more comprehensive and uniform with the issuance of the Standard Chart of Accounts for HMOs last Dec. 28, 2018,” Funa added.