The Philippine insurance industry posted an 8.6% fall in net income to PHP41.24bn ($858m) last year, compared to PHP45.12bn in 2019, due to the impact of the COVID-19 pandemic, according to the 2020 Industry Performance report released by the Insurance Commission.
Premium income of the insurance industry in 2020 rose marginally by 1.18% year-on-year to reach PHP308.25bn. Claims and benefit payments dropped by 12.38% to PHP98.49bn last year, compared to 2019.
The life insurance sector suffered a double-digit drop of 16.41% in net income to PHP30.2bn last year. In contrast, the non-life insurance sector’s net income soared by 65.81% to PHP5.64bn in 2020 compared to 2019.
The mutual benefit associations (MBA) sector’s net income in 2020 slid by 3.42% to PHP5.39bn.
In terms of total premiums earned, the life insurance sector recorded 5.9% growth to PHP247.72bn last year, compared to 2019. Insurance penetration crept up to 1.71% last year from 1.64% in 2019.
The bulk of premiums earned in the sector last year was generated from the sale of variable life insurance products which accounted for premium income of PHP183.24bn, which represented growth of 7.7%. Premiums collected from traditional life insurance plans saw marginal growth of 1.09% to PHP64.48bn.
The non-life insurance industry saw net premiums written fall by 16.17% to PHP49.31bn last year compared to PHP58.82bn in 2019.
The MBA segment posted a 5.72% decline in total contributions/premiums to PHP11.23bn in 2020.