IC: Pre-Need Firms Sell 31.23% More Plans in Q1 2025

The Insurance Commission recently reported that pre-need companies sold 31.23% more plans as of 31 March 2025 (“Q1 2025”) than as of 31 March 2024 (Q1 2024), increasing from 166,286 to 218,218 plans.

​Life or memorial plans continue to dominate the pre-need plan market, which accounts for 99.78% of the plans sold in Q1 2025. The figures were drawn from unaudited interim financial statements submitted by 13 pre-need firms.

The industry’s Total Assets also grew by 6.55% during the quarter under review, rising from P153.54 billion to P163.61 billion. This is due to a 7.60% increase in Investments in Trust Funds, which comprises 85.90% of the industry’s Total Assets.

Total Net Worth of pre-need firms also increased by 9.11% as of Q1 2025 vis-à-vis as of Q1 2024, increasing from P26.43 billion to P28.84 billion.

A significant contributor to this increase is the 19.08% upswing in Retained Earnings, comprising 73.30% of the pre-need industry’s aggregate net worth.

Total Premium Income also increased by 4.41% year-on-year, from P5.57 billion as of Q1 2024 to P5.82 billion as of Q1 2025. Out of 13 reporting companies, only 10 have premiums collection; and five (5) of which have reported increases.

However, the industry reported a contraction of 63.80% in its Total Net Income during the quarter under review, from P3.23 billion to P1.17 billion, because of a 14.35% increase in Pre-Need Reserves and a comparatively slower year-on-year growth in Income from Trust Fund Investments.

Meanwhile, the industry’s Trust Funds remained sufficient to meet Pre-Need Reserves, including Benefits Payable. Trust Funds exceeded Pre-Need Reserves by P12.51 billion as of Q1 2025, increasing by 25.12% from P10.00 billion in Q1 2024.

This shows that pre-need companies do not only meet their reserve requirements but are likewise able to grow their investments, further reflecting a well-managed and financially robust industry capable of timely fulfilling their obligations to planholders.