The Philippine pre-need industry saw its total net worth increase by 12.18% to PHP32.36bn ($528m) at the end of the first quarter of 2026, from PHP28.84bn recorded in the same period last year.
Providing context for the increase, Philippine Insurance Commissioner Reynaldo Regalado said: “A significant contributor to this increase was the 18.99% growth in retained earnings, which accounted for 77.74% of the industry’s total net worth. This highlights the industry’s strong earnings generation and solid financial position.”
Total assets also grew by 9.60% to PHP179.32bn from PHP163.61bn a year earlier. The increase was driven mainly by investments in trust funds, which accounted for 85.79% of total assets and expanded by 9.46% year on year. Meanwhile, total liabilities rose by 9.05% to PHP146.96bn, primarily due to a 9.32% increase in pre-need reserves, which comprised 90.91% of total liabilities.
Total premium income increased by 12.31% to PHP6.53bn from PHP5.82bn in the first quarter of 2025. Meanwhile, the industry's total net income amounted to PHP140m, marking an 88.05% decline from the PHP1.17bn recorded in the same period last year.
The decline was primarily due to lower income generated from trust funds.
“The decrease in investment earnings reflects the impact of global economic uncertainty and geopolitical tensions, which have affected financial markets and investment performance. Increased market volatility and inflationary pressures also contributed to the decline in the industry’s net income,” Mr Regalado added.
Furthermore, the number of plans sold during the quarter continued to rise, increasing by 11.92% to 244,233 from 218,218 in the first quarter of 2025.
“Life and memorial plans continued to dominate sales, accounting for 99.92% of all plans sold during the quarter,” Mr Regalado also said.