NONLIFE insurers recorded higher premiums and net income in the first half, data from the Insurance Commission (IC), the government agency that regulates the insurance industry, showed.

Combined premiums earned by the nonlife industry rose by 13.29% year on year to P42.54 billion for the first six months, from P37.55 billion a year earlier, the IC said on Wednesday.

Total net premiums written increased by 9.96% to P44.19 billion from P40.18 billion.

"This growth was driven largely by motor car insurance, which accounted for P17.59 billion in net premiums written during the first half of 2026," it said.

That sum is equivalent to nearly 40% of the industry's total net premiums written for the period. Motor car policies include the compulsory third-party liability cover vehicle owners must secure to register their vehicles with the Land Transportation Office, which makes motor insurance a recurring purchase tied to vehicle registration.

Gross premiums written also climbed, rising 14.03% to P75.43 billion.

Nonlife insurers' combined net income jumped by 43.78% to P7.37 billion from P5.12 billion.

"The nonlife insurance industry maintained its growth in the first half of 2026, recording improvements across all key indicators and demonstrating prudent fund management and sustained business growth," the IC said.

The higher profit came even as claims paid by the sector increased by 9.48% year on year to P17.51 billion in the six-month period from P15.99 billion.

Claims growth trailed the 13.29% rise in premiums earned during the period.

The IC said this reflects the industry's continued capacity to meet its obligations to policyholders.

Combined assets of the nonlife sector expanded by 6.63% to P405.28 billion as of June from P380.07 billion.

Liabilities rose by 5.6% to P253.78 billion.

The industry's net worth also increased by 8.41% year on year to P151.5 billion, outpacing the rise in liabilities.

"Other key indicators, including total net worth, invested assets, and paid-up capital, likewise registered growth during the first half of 2026, further demonstrating the industry's continued financial strength and stability," the IC said.

"These positive indicators affirm the industry's capacity to support policyholders and contribute to the continued stability and development of the nonlife insurance sector."

Earlier this week, the IC said the combined premium collections of life and nonlife insurers and mutual benefit associations rose to P282.91 billion in the first half from P243.39 billion in the same period last year.

As a result, insurance penetration, or the ratio of total insurance premiums collected to the country's gross domestic product, increased by 0.16 percentage point to 1.96% from the same period last year. Even with the gain, the ratio stayed just under 2% of GDP.

Insurance density, which refers to the average spending of each individual on insurance, climbed by 15.24% to P2,468.63 as of June from P2,142.19 a year earlier.

The sector's full-year results will show whether the first-half momentum, led by motor car insurance, held through the second half of the year. — BVR