Pre-need plan sales boost sector’s H1 income

THE pre-need industry generated a total net income of P901.6 million in the first quarter of this year, a reversal from its net loss in the same period last year.

Latest data from the Insurance Commission showed the pre-need industry showed more plans were sold by the industry in the first three months of this year, allowing it to bounce back from the P1.15-billion net loss it posted a year ago.

Total number of plans sold from January to March this year hit 154,238, posting a double-digit growth of 14.91 percent from 134,225 in the first quarter last year.

However, of the 11 pre-need companies that submitted their financial performance report to the regulator, only three recorded net income in the first quarter of this year.

Leading the list of pre-need companies in terms of total net income is Saint Peter Life Plan Inc. with P898.37 million, followed by Ayala Plans Inc. (P24.91 million) and Golden Future Life Plan (P2.4 million).

Life plans formed the bulk of the total plans sold during the 3-month period at 153,943, growing by 15 percent year-on-year from 133,861.

Pension plans, on the other hand, dropped by almost 19 percent to 295 from 364. Meanwhile, the pre-need industry saw its premium income from January to March this year hitting P4.87 billion, inching up by 2.3 percent from P4.76 billion.

Likewise, its assets climbed by 10.4 percent to P111.9 billion from P101.38 billion in the first quarter of last year.

The industry’s liabilities also grew by 8.9 percent year-on-year to reach P93.47 billion from P85.83 billion.

Pre-need reserves, which include benefit obligations/payables as mandated by the Pre-Need Code (Republic Act 9829), stood at P89.76 billion during the period, rising by 9.17 percent from P82.22 billion as of end-March 2021.