The Philippine pre-need industry experienced a remarkable surge in 2025, with combined premium income climbing 5.73% to P23.94 billion. This growth occurred even as the number of licensed companies decreased, a direct result of increasingly stringent regulatory scrutiny designed to fortify the sector.
Regulators reported a sector demonstrating both sustained growth and robust financial health, highlighted by significant improvements across key performance indicators. Net income witnessed an impressive leap, soaring 54.4% to P7.96 billion compared to the previous year’s P5.15 billion.
Fueling this expansion was a substantial increase in plan sales – a remarkable 28.02% jump, bringing the total to 895,679 plans sold. Life and memorial plans overwhelmingly dominated sales, collectively representing 99.84% of the total.
The financial strength of pre-need companies was further underscored by a 21.04% year-on-year increase in combined net worth, reaching P33.87 billion. A significant portion of this, 73.48%, was attributed to retained earnings, which themselves grew by an impressive 39.57%.
Total assets also expanded, rising by 8.19% to P178.2 billion. This growth was primarily driven by a 9.64% increase in investments held in trust funds, which constitute a substantial 85.92% of the companies’ total assets.
Liabilities remained manageable, totaling P144.33 billion, with reserves accounting for a substantial 91.27% of that figure. This demonstrates a strong commitment to fulfilling future obligations.
A particularly encouraging sign was the 62.62% increase in surplus over required reserves, reaching P16.03 billion. Trust fund investments now comfortably exceed all pre-need reserves and projected benefit payments, providing a significant buffer.
According to the Insurance Commissioner, the tightened regulatory environment has been instrumental in restoring consumer and investor confidence, fostering a more secure and transparent market. This renewed trust is clearly translating into positive industry performance.
The industry’s upward trajectory signals a positive outlook and strong growth potential for the future. Regulators are focused on building upon this foundation, aiming for continued success in 2026 and beyond.
