The National Reinsurance Corporation of the Philippines, the country’s national reinsurer, earned P120 million in net income in 2020, down 24 percent from P157 million in 2019, as lower investment income weighed down on strong underwriting results.
The company also generated other comprehensive Income of P267 million to bring its total comprehensive income to P387 million in 2020.
“While Nat Re’s financial performance in 2020 reflected financial market volatility caused by COVID-19 especially in the first half of the year, the company ensured operational resilience to continue delivering reinsurance-related services and serve its customers efficiently,” said Nat Re president and chief executive Allan Santos.
Gross written premiums grew 3 percent to P4.47 billion from P4.34 billion in 2019 on higher reinsurance premiums from the life and non-life domestic business.
Net underwriting income before administration expenses surged 151 percent to P341.7 million from P136.4 million in 2019, resulting from higher reinsurance premium income and lower loss ratios.
Nat Re’s combined ratio—the sum of loss, commission and expense ratios and a measure of the profitability of the company’s insurance operations—improved to 98 percent from 104 percent in 2019.
A combined ratio below 100 percent indicates the company is making an underwriting profit, while a combined ratio above 100 percent means the company is paying more claims and expenses versus premiums.
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