Pre-Need Companies Finish Strong as of Q4 2024 with 146.93% Rise in Net Income

​The Insurance Commission recently reported that the pre-need industry’s Total Net Income rose by 146.93% year-on-year, from P2.09 billion as of the quarter ending on 31 December 2023 (Q4 2023) vis-à-vis P5.15 billion as of the quarter ending on 31 December 2024 (Q4 2024).

​“The increase was largely driven by the 68.04% spike in the total income earned from ‘investments in trust funds’ and a 120.23% surge in ‘other income’,” said Insurance Commissioner Reynaldo A. Regalado.
 
The figures were drawn from the unaudited interim financial statements submitted by 16 pre-need companies.
 
The pre-need sector’s Total Assets likewise grew by 8.12%, or from P152.34 billion as of Q4 2023 to P164.71 billion as of Q4 2024. Investments in Trust Funds, which comprise 84.79% of the sector’s Total Assets, increased by 9.08% year-on-year.
 
Meanwhile, the industry’s Total Premium Income slightly contracted by 0.38% to P22.64 billion as of Q4 2024, from P22.73 billion as of Q4 2023, as only 8 out of 17 companies reported an increase in premiums collected.
 
Pre-need plans sold by the sector, too, slightly contracted by 6.61%, from 749,154 plans as of Q4 2023 to 699,621 plans as of Q4 2024. Life or memorial plans remained to be the best selling products, accounting for 99.88% of the Total Plans Sold.
 
The Total Liabilities of the pre-need industry slightly rose from P129.12 billion as of Q4 2023 to P136.73 billion as of the same period in 2024, or by 5.89%. This growth was driven by a 6.10% increase in Pre-Need Reserves year-on-year, which account for 90.68% of the sector’s Total Liabilities. Notably, 7 out of 8 companies that recorded asset growth likewise experienced a rise in liabilities.
 
The sector’s Total Net Worth also grew by 20.54%, from P23.22 billion as of Q4 2023 to P27.98 billion as of Q4 2024. This was mainly due to the 38.04% increase in Retained Earnings year-on-year, which account comprises 63.72% of the sector’s Total Net Worth.