PNB Gen premiums up 16% last year

The Philippine National Bank’s (PNB) non-life insurance subsidiary recorded a premium income of P491 million, or up 16 percent from the P424 million the previous year.

The PNB General Insurers Co. Inc. (PNB Gen) forecasts a premium collection of P581 million this year.

In terms of net earnings, PNB Gen earned P86.7 million last year, which is 20 percent better than the P72.7 million realized in 2002.

PNB Gen president and chief executive officer Jose B. Zuñiga said the non-life insurance firm net earnings exceeded its original target of P83.6 million despite the cutthroat competition prevailing in the industry and rising reinsurance costs.

Last year, it recorded a 16-percent return on equity (ROE) ranking it among the highest in the industry.

Underwriting margins of 23 percent surpassed the industry standard of 15 percent while its claims ratio of 20 percent bested the industry standard of 45 percent.

Its net worth of more than P500 million is also among the highest in the industry.

"PNB Gen’s outstanding performance to the high net underwriting income have been spurred by its highly successful open market sales," Zuñiga said in a statement. – TPT