Manila: The Philippine pre-need industry remained resilient despite the decline in income in the first quarter of the year, the Insurance Commission (IC) said Wednesday.
According to Philippines News Agency, the IC reported that the industry's total net income fell to PHP140 million in the first quarter of 2026 from last year's PHP1.17 billion due to the lower income generated from trust funds. IC Commissioner Reynaldo Regalado explained that the decrease in investment earnings reflects the impact of global economic uncertainty and geopolitical tensions, which have affected financial markets and investment performance. He also noted that increased market volatility and inflationary pressures contributed to the decline in the industry's net income.
Despite the decline in income, the IC highlighted a positive trend in the number of plans sold during the quarter, which increased by 11.92 percent to 244,233 plans sold, compared to 218,218 in the first quarter of 2025. Commissioner Regalado emphasized that life and memorial plans continued to dominate sales, accounting for 99.92 percent of all plans sold during the quarter.
Additionally, the industry's total premium income rose by 12.31 percent to PHP6.53 billion from PHP5.82 billion the previous year. The total net worth of the industry saw a 12.18 percent increase, reaching PHP32.36 billion from PHP28.84 billion in the first quarter of 2025. A major factor in this growth was the 18.99 percent increase in Retained Earnings, which made up 77.74 percent of the industry's total Net Worth. This indicates the industry's strong earnings generation and solid financial position.
The total assets of the pre-need industry also experienced growth, rising by 9.6 percent to PHP179.32 billion from PHP163.61 billion a year earlier. This growth was primarily driven by investments in trust funds, which accounted for 85.79 percent of total assets. Regalado noted that the strong performance in the first quarter of 2026 reflects the industry's resilience, sound financial position, and commitment to fulfilling its obligations to plan holders. He added that the continued growth in key financial indicators strengthens public confidence in the industry and positions it to support long-term financial security and serve future needs.
