The Philippine pre-need industry reported a remarkable surge in net income for the fourth quarter of 2024, with figures more than doubling year-on-year (YoY), according to data from the Insurance Commission.
The industry’s total net income skyrocketed by 146.93%, reaching $87.6 million (₱5.15 billion). Insurance Commissioner Reynaldo A. Regalado attributed this strong performance to a 68.04% increase in income from investments in trust funds and a 120.23% rise in other income sources.
This data was compiled from unaudited interim financial statements submitted by 16 pre-need companies.
The sector’s total assets grew by 8.12%, reaching $2.8 billion (₱164.71 billion) by the end of Q4 2024, compared to $2.6 billion (₱152.34 billion) in the same period last year.
Investments in trust funds, which represent 84.79% of the sector’s total assets, saw a 9.08% increase.
Despite the overall positive growth, total premium income saw a slight dip of 0.38%, amounting to $384.9 million (₱22.64 billion). Only 8 out of 17 pre-need companies reported higher premium collections during the period.
The number of pre-need plans sold also declined by 6.61%, with 699,621 units sold in Q4 2024, down from 749,154 a year earlier. Life and memorial plans remained the dominant products, making up 99.88% of total sales.
On the liability side, total liabilities rose by 5.89%, reaching $2.3 billion (₱136.73 billion), driven by a 6.10% increase in pre-need reserves, which comprise 90.68% of total liabilities. Seven out of eight companies that saw asset growth also experienced a rise in liabilities.
The industry’s net worth grew by 20.54% to $475.7 million (₱27.98 billion), compared to $394.7 million (₱23.22 billion) in Q4 2023. This increase was largely due to a 38.04% rise in retained earnings, which account for 63.72% of the sector’s total net worth.
At the current exchange rate of $1.00 = ₱57.56, the data reflects a robust performance despite challenges in premium income and plan sales.
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