Pre-need sector’s Q1 net profit down as volatility hits investment income

THE PRE-NEED INDUSTRY saw its combined net income drop by 88.05% in the first quarter as trust fund earnings were dragged by increased market volatility, the Insurance Commission (IC) said.

The sector’s net income plunged to P140 million in the first three months of the year from P1.17 billion previously due to lower income generated from trust funds.

“The decrease in investment earnings reflects the impact of global economic uncertainty and geopolitical tensions, which have affected financial markets and investment performance. Increased market volatility and inflationary pressures also contributed to the decline in the industry’s net income,” Insurance Commissioner Reynaldo A. Regalado said in a statement on Wednesday.

The lower profit came even as the sector posted growth in its assets, net worth, and premium income in the period on the back of more plans sold, the IC said.

Pre-need firms’ combined premium income rose by 12.31% year on year to P6.53 billion in the first quarter from P5.82 billion previously.

The number of plans sold in the period grew by 11.92% to 244,233 from 218,218 a year ago.

“Life and memorial plans continued to dominate sales, accounting for 99.92% of all plans sold during the quarter,” Mr. Regalado said.

Total net worth climbed by 12.18% to P32.36 billion from P28.84 billion in the same period last year.

“A significant contributor to this increase was the 18.99% growth in retained earnings, which accounted for 77.74% of the industry’s total net worth. This highlights the industry’s strong earnings generation and solid financial position,” the IC chief added.

The industry’s assets also grew by 9.6% to P179.32 billion as of March from P163.61 billion a year earlier, the regulator said.

“The increase was driven mainly by investments in trust funds, which accounted for 85.79% of total assets and expanded by 9.46% year on year,” the IC added.

Meanwhile, total liabilities went up by 9.05% year on year to P146.96 billion.

This was attributed to a 9.32% increase in pre-need reserves, which made up 90.91% of total liabilities.

“The pre-need industry’s strong performance in the first quarter of 2026 reflects its resilience, sound financial position, and commitment to fulfilling its obligations to planholders. The continued growth in key financial indicators strengthens public confidence in the industry and positions it to support long-term financial security and serve future needs,” Mr. Regalado said. — A.M.C. Sy