National Reinsurance Corporation of the Philippines (Nat Re, PSE: NRCP) posted P157 million in net income in 2019. This result is on the back of underwriting income of P136 million, marking the company’s fifth straight year of positive underwriting profits, and P349 million in realized investment income. Total comprehensive income was P533 million.
The Philippines’ national reinsurer also had a record year in terms of gross written premiums (GWP), which surpassed the P4-billion mark, and net written premiums (NWP), which exceeded P3 billion. Both metrics grew at double digits—18% for GWP and 27% for NWP—which means it outpaced the growth of the Philippine insurance industry as a whole in 2019.
Nat Re’s combined ratio improved by more than three percentage points to 104.1%, driven by a substantial decrease in expense ratio from 13.7% in 2018 to now just 8.4%.
“A series of earthquakes and several typhoons affected the Philippine non-life industry. Aside from these natural disasters, a number of large fires also caused billions of pesos in losses,” Nat Re President and CEO Allan Santos said. “Despite these, we are pleased to report on Nat Re’s favorable operating performance. This and our other achievements, especially in relation to our role as national reinsurer, push us to sustain our positive results.”
The year 2019 marked the company’s launch of its first sabotage and terrorism, financial lines, and surety reinsurance facilities, where it pools risks and shares a significant proportion with the local industry. It also expanded its life business’ client base by acquiring four new cedants and covering cooperatives in provinces outside of Metro Manila. Nat Re was awarded by The Asset, a widely recognized global business news and research organization, as one of the Top Investment Houses in Asian Local Currency Bonds in the Philippines.
The company continued to participate in various (re)insurance initiatives in the country and the region. It became a member of the technical working group of the public-private crop insurance pilot project of the Philippine Crop Insurance Corporation. Its CEO was elected as the Chairman of the ASEAN Reinsurance Working Committee created by the ASEAN Insurance Council. Nat Re also became a founding member of the Asia Guarantee and Credit Insurance Association, the first association for guarantee and credit insurance insurers in Asia.
Santos ended his message saying that Nat Re will endeavor to deliver even stronger operating performance, further cultivate client intimacy, expand its profitable life business, catalyze the launch of the Philippine Catastrophe Insurance Facility, and fulfill its renewed sustainability commitment.