The Philippine life insurance industry recorded a 17.91% increase in premium income in the first half of the year, driven mainly by variable life products.

The sector’s combined premium income rose to P229.98 billion as of end-June, up from P195.05 billion a year earlier, the Insurance Commission (IC) said in a statement on Monday.

“These figures indicate the continued stability and resilience of the life insurance industry. Despite the financial challenges encountered earlier this year, the industry demonstrated its capacity to withstand financial shocks while continuing to meet its obligations to policyholders and beneficiaries,” the IC said.

Variable life premiums earned in the first semester increased by 14.79% year on year to P150.031 billion from P130.704 billion.

Traditional life premiums climbed by 24.25% to P79.954 billion in the first six months from P64.35 billion in the same period last year.

The industry’s new business annual premium equivalent also rose by 13.13% to P41.855 billion from P37.008 billion a year earlier, signaling steady new policy sales alongside higher collections from existing business.

Combined net income of life insurance companies improved by 3.42% year on year to P21.42 billion in the first semester from P20.72 billion, the IC said.

Total net worth edged up by 0.61% to P289.484 billion from P287.72 billion.

The industry’s total assets surpassed the P2-trillion mark in the first half, reaching P2.17 trillion. This was 8.77% higher than the P1.995 trillion recorded a year earlier.

Of this amount, total invested assets stood at P2.1 trillion, also up 8.77% from P1.93 trillion a year ago.

Total liabilities increased by 10.15% to P1.88 trillion as of end-June from P1.71 trillion in the first half of 2025.

Total benefit payments likewise climbed by 19.57% year on year to P69.21 billion in the first six months of 2026 from P57.88 billion in the same period last year.

Insurance industry

In a separate statement, the IC said combined premium collections for the broader insurance sector — including life and nonlife insurers and mutual benefit associations (MBAs) — increased to P282.91 billion in the first half from P243.39 billion in the same period last year.

The life industry was the main growth driver.

Total net premiums written by nonlife insurance companies rose by 9.96% year on year to P44.188 billion from P40.185 billion.

MBAs’ total contributions increased by 7.06% year on year to P8.733 billion from P8.157 billion.

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. However, this was down from 2.04% as of end-March.

Insurance density, which measures average spending per person on insurance, rose by 15.24% to P2,468.63 as of June from P2,142.19 a year earlier.

The insurance sector’s total assets stood at P2.76 trillion, up 8.5% year on year from P2.55 trillion.

Total net worth grew by 4.04% to P515.55 billion from P495.54 billion, while total paid-up capital and guaranty fund increased by 2.36% to P87.44 billion from P85.42 billion.

Total liabilities rose by 9.57% year on year to P2.24 trillion from P2.05 trillion.

Insurance companies paid P90.87 billion in benefits in the first half, up 16.69% year on year.

“The commission views these developments as encouraging indicators, underscoring rising public awareness of financial protection, greater insurance adoption, and growing confidence in the insurance industry,” the IC said. — A.M.C. Sy