Nat Re posts lower earnings last year

MANILA, Philippines — The National Reinsurance Corporation of the Philippines (Nat Re), the country’s national reinsurer, earned a lower net income of P120 million in 2020, as stronger underwriting results were weighed down by lower investment income.

Nat Re’s 2020 net income was down by 24 percent from its 2019 net income of P157 million.

In a statement, the firm said its gross written premiums grew by three percent to P4.47 billion from P4.34 billion in 2019 due to growth in reinsurance premiums from the life and non-life domestic business.

Net underwriting income before administration expenses rose significantly by 151 percent to P341.7 million from P136.4 million in 2019, resulting from higher reinsurance premium income and lower loss ratios.

For 2020, 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.

“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 Santos, president and CEO of Nat Re.

The firm provides reinsurance services to life and non-life insurers to help the companies manage their capital.

Nat Re’s services also help direct insurers to maximize the use of their net premiums given their risk appetites in executing their competitiveness roadmaps.

The company also builds its clients’ capabilities in underwriting, product development, pricing, retention setting, and reinsurance program analysis.