SUN LIFE OF Canada (Philippines), Inc. and Philippine American Life & General Insurance Co. (Philam Life) stood out among life insurers in terms of key insurance statistics in 2018, the Insurance Commission (IC) reported.
Based on the unaudited statistics submitted by life insurers as of end-2018, the IC said Sun Life collected the highest amount of premium income at P37.39 billion.
This was followed by Philippine Axa Life Insurance Corp. (AXA Philippines) with P29.44 billion, Philam Life with P22.37 billion, Pru Life Insurance Corp. of UK (Pru Life UK) with P22.03 billion, and BPI-Philam Life Assurance Corp., Inc. (BPI-Philam) with P18.3 billion.
Sun Life also topped last year in terms of new business annual premium equivalent at P8.22 billion, followed by AXA Philippines (P6 billion), Pru Life UK (P5.76 billion), Philam Life (P4.43 billion), and BPI-Philam (P3.73 billion).
Meanwhile, based on net income, Philam Life took the top spot last year, earning P9.8 billion and coming from the second spot in 2017. This was followed by Sun Life with P6.77 billion, AXA Philippines with P2.75 billion, Manufacturers Life Insurance Co. (Phils.). Inc. (Manulife Philippines) with P2.59 billion, and Insular Life Assurance Co., Ltd. with P2.3 billion.
In 2018, Philam Life was the country’s largest life insurance in terms of assets, retaining the top spot at P246.75 billion, followed by Sun Life (P222.44 billion), Insular Life (P130.42 billion), AXA Philippines (P115.13 billion) and BPI-Philam (P101.38 billion).
The local subsidiary of AIA Group Ltd. likewise recorded the highest net worth in 2018 with P78.87 billion. This was followed by Insular Life (P37.03 billion), Sun Life (P25.41 billion), Manulife Philippines (P14.43 billion) and United Coconut Planters Life Assurance Corp. (P10.99 billion).
Based on the Amended Insurance Code, insurance firms are required to increase their net worth to P900 million by the end of 2019, from the current P550 million. This will be further increased to P1.3 billion by the end of 2022.
Insurance Commissioner Dennis B. Funa previously expressed concern over the increased minimum solvency requirements, noting that some insurers might not be able to reach the P900 million by the end of this year.
“The numbers are still significant, so [there are] sizeable number of insurance companies that are still far from the P900 million,” he told reporters last Jan. 18 at the IC’s anniversary banquet.
However, he noted that the regulatory body will be flexible in implementing the law, especially if insurers indicate plans of merger or capital infusion to meet the net worth requirement.
The insurance industry posted a P290.15-billion premium income in 2018, up 11.67% year-on-year, with the bulk coming from the life insurance sector with P228.61 billion.
As of end-2018, life insurers had P1.26 trillion worth of assets and net worth of P219.91 billion. — Karl Angelo N. Vidal