THE preneed industry suffered a decline in total net income in the first half of 2026, dragged by weaker investment income as external factors dampened financial markets, according to the Insurance Commission (IC).
The IC said last Saturday first-half net income of companies that sell contracts for future service or benefit at the time of actual need or agreed maturity date dropped by 52.89 percent to P2.506 billion from P5.321 billion in the same period last year.
This comes despite the nearly 10-percent increase in total sales after 466,834 preneed plans were sold in the first half of the year, the insurance regulator said.
Of the total plans sold, 466,437 were accounted for by life plans, 358 were pension and 39 were education plans.
The industry’s premium income likewise rose by 11.43 percent to P12.799 billion in the first half from P11.489 billion a year earlier.
Meanwhile, first-half benefits payment fell by 9.18 percent year-on-year to P3.341 billion from P3.679 billion.
Despite the drop in earnings, the IC said the pre-need industry ‘remains well-positioned to support the continued development of the market and to meet its obligations to plan holders.’
The industry’s total assets increased by 8.87 percent to P183.301 billion in the first half from P168.361 billion a year earlier.
This growth was mainly driven by the 8.50 percent increase in investments in trust funds, from P145.607 billion in the first half to P157.980 billion a year ago. Investments in trust funds remain the industry’s largest asset component, accounting for 86.19 percent of its total assets, the IC noted.
Total liabilities also went up by 7.96 percent to P147.664 billion from P136.780 billion after preneed reserves increased and comprised 91.74 percent of the industry’s total liabilities.
Total net worth of the industry likewise grew by 12.84 percent year-on-year, reaching P35.636 billion as of the first half of 2026, supported by the 10.96-percent growth in capital stock and 16.52-percent increase in retained earnings.
‘The industry’s continued growth reflects both its resilience and the importance of sustained prudential supervision,’ the IC said.
The preneed industry has been under the supervision of the IC since 2019, pursuant to Republic Act No. 9829, or the Pre-Need Code of the Philippines.