Pre-need profit soars despite drop in life plans sold

The pre-need industry saw its net income jump by more than 50 percent to P2.9 billion in the first semester even amid a decrease in the number of life plans sold, the Insurance Commission (IC) said.

- LOUISE MAUREEN SIMEON

Latest data from IC showed that the industry's net income reached P2.88 billion from January to June, 52 percent higher than the P1.89 billion in profit in the same period last year.

This even as the premium income of the sector slightly declined by 0.35 percent to P11.17 billion following the 22 percent drop in the total number of plans sold.

The industry sold 327,841 pre-need plans, 22 percent lower than the 419,044 sold in the first semester of 2023.

Life plans accounted for the bulk or 99 percent of total pre-need plans, which also registered a 22 percent drop in the number of plans sold.

The remaining 316 were pension plans, which slipped by 26 percent from the 429 sold the year prior. Education plans, however, more than tripled to 36 plans sold.