National Reinsurance Corporation of the Philippines, the country’s national reinsurer, said it expects increased demand for financial reinsurance and higher health-related insurance coverage amid the pandemic to support the company’s growth this year.
Nat Re president and chief executive Allan Santos said during the company’s annual stockholders meeting that while economic recovery could be slower than initially expected because of delays in the arrival of vaccines and intermittent surges of COVID-17 cases, the company would sustain its growth in 2021 as it sees heightened demand for reinsurance.
“We continue to identify pockets of growth such as opportunities resulting from the need for capital relief reinsurance solutions and higher health insurance covers, as well as partnerships with foreign reinsurers,” Santos said.
It said the recent partnership with Insurance Commission and the Philippine Insurers and Reinsurers Association for the Philippine Catastrophe Insurance Facility would also to contribute to its business.
The catastrophe insurance facility is designed to help the industry manage catastrophe risks more efficiently. The facility would afford the public more inclusive access to catastrophe protection and allow faster economic recovery from disasters.
“We are heartened to see that Nat Re has continued to play a unique role in supporting the nation, the insurance industry and fellow Filipinos during these trying times,” Santos said.
“As we face the remainder of 2021, we assure you that we will continue to pursue profitable growth as well as cement Nat Re in its role of being a stable anchor and champion for the insurance industry,” Santos said.
In 2020, Nat Re posted a net income of P120 million, down 24 percent from P157 million in 2019, as stronger underwriting results were weighed down by lower investment income.
Gross written premiums grew by 3 percent to P4.47 billion from P4.34 billion in 2019 on increased reinsurance premiums from the life and non-life domestic business.
Net underwriting income before administration expenses surged by 151 percent to P341.7 million from P136.4 million in 2019, resulting from higher reinsurance premium income and lower loss ratios.