Stronger sales of life and memorial plans pushed the Philippine pre-need industry’s earnings to multi-year highs in 2025, reflecting firmer regulation and renewed public trust.
Data from the Insurance Commission showed net income jumped 54.4% to ₱7.96 billion in 2025 from ₱5.15 billion a year earlier, fueled by a 28% rise in plans sold to over 895,000 from nearly 700,000.
Total premium income increased 5.73% to ₱23.94 billion, supported by sustained demand for life and memorial products that continued to account for the bulk of new business.
Insurance Commission chief Reynaldo Regalado attributed the gains to stricter oversight that helped stabilize the market after years of consolidation. “Strengthened regulatory oversight has positively impacted the industry’s growth by restoring the trust and confidence of both consumers and investors, ensuring a more secure and transparent market environment,” he said.
The industry ended the year with 14 licensed companies, fewer than in previous years as regulators enforced compliance under Republic Act No. 9829, or the Pre-Need Code. Despite the leaner field, total net worth expanded 21.04% to ₱33.87 billion, buoyed by a 39.6% jump in retained earnings, which accounted for 73.48% of the total.
Assets grew 8.19% to ₱178.2 billion, largely driven by investments in trust funds that back pre-need obligations. Total liabilities reached ₱144.33 billion, with pre-need reserves representing 91.27% of the total. The industry reported a ₱16.03-billion surplus over required reserves, a 62.6% improvement from 2024, with trust fund investments remaining more than sufficient to cover all pre-need reserves and benefits payable.
Regalado said the numbers show the sector is on firmer footing. “As the data show, the preneed industry continues on a solid upward path—strengthening its financial position, maintaining profitability, and enhancing its capacity to meet future obligations,” he said.
He added that “the overall performance of the industry reflects a positive outlook and strong growth prospects in the market. This is a foundation we aim to build upon in 2026 and the succeeding years.”
Pre-need plans, which cover memorial, education, and pension benefits, are sold in advance to lock in future services and shield families from rising costs. Under the law, companies must place collections in trust funds held with accredited banks and submit regular financial reports to the regulator, a framework designed to ensure benefits are delivered when claims fall due.
As of December 31, 2025, the Insurance Commission listed 14 companies with certificates of authority for the year: AMA Plans Inc.; Ayala Plans Inc.; CityPlans Inc.; Cosmopolitan Climbs Life Plan Inc.; Eternal Plans Inc.; Evergreen Life Plan Services Inc.; Freedomlife Plan Corporation; Goldenfuture Life Plans Inc.; Goodlife Plans Inc.; Manulife Financial Plans Inc.; Philplans First Inc.; St. Peter Life Plan Inc.; Sun Life Financial Plans Inc.; and Trusteeship Plans Inc.
With stronger capitalization, ample reserve cover, and rising plan sales, the industry heads into 2026 with a balance sheet that regulators say is better equipped to meet long-term obligations—and a market regaining confidence in the value of preparing ahead.
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