Based on the latest data by the insurance commission here are the top Life Insurance Companies in the Philippines for year ending 2018 which is the basis for the 2019 ranking.
The Ranking of the Top Life Insurance Companies in the Philippines is based on Net Worth. There are many ways to rank insurance companies as follows:
- Premium Income and New Business Annualized Premium Equivalent – Not very reliable because it is based on Gross Sales and does not include expenses used to generate the sales. Some companies report high sales but very high expenses. Further, some companies report very high gross sales this year and next year low gross sales.
- Asset Ranking – Not also very reliable because it is based on Gross Assets (cash, property, investments, etc.) but there are some companies which have high Assets but also very high Liabilities.
- Paid Up Capital Ranking – This is based on the amount that the shareholders gave to put up or start the company. This is a useful measure because this amount does not usually increase every year because it is based on the amount the shareholders gave to start the company’s operations.
- Net Worth Ranking – This is the most reliable measure of an insurance company. This is because it is based on (Assets less Liabilities) + (Sales – Expenses). Meaning this amount is based on how much will be left if the company sold everything it owns and paid all its liabilities. Further, this also increases every year if the net income is growing every year. This also declines every year if there is a net loss every year.
Because of this we decided to use Net Worth as the basis for Ranking Life Insurance Companies and not gross sales, gross assets or paid up capital.
The top Life Insurance Companies in the Philippines based on Net Worth (Assets Less Liabilities) as of December 2018 are as follows: Phil-Am Life, Insular Life, Sunlife, Manulife, Cocolife, Axa Life, BDO Life, BPI Phil-AM, PRU Life (U.K.) and Sunlife Grepa. These information can be verified in the official website of the insurance commission here: https://www.insurance.gov.ph/statistics/life/
We shall post the update once there are new data available from the website of the Insurance Commission.