The National Reinsurance Corporation of the Philippines (Nat Re) said its net income dropped by 24 percent to P120 million last year from P157 million in 2019 as lower investment income weighed down stronger underwriting results.
The country’s national reinsurer said in a statement on Wednesday that their Total Comprehensive Income last year reached P387 million, including P267 million from Other Comprehensive Income.
“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 Allan R. Santos, Nat Re President and Chief Executive Officer.
Due to the growth in reinsurance premiums from life and non-life domestic business, Nat Re’s gross premiums written grew by 3 percent to P4.47 billion from P4.34 billion in 2019. Meanwhile, its net underwriting income before administration expenses more than doubled to P341.7 million in 2020 compared to P136.4 million in the previous year as a result of higher reinsurance premium income and lower loss ratios.
Nat Re’s combined ratio, which is 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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