The National Reinsurance Corporation of the Philippines (Nat Re), the country’s national reinsurer, earned P120 million in net income in 2020, down 24% from P157 million in 2019, as stronger underwriting results were weighed down by lower investment income. The company also generated Other Comprehensive Income of P267 million to bring its Total Comprehensive Income to P387 million pesos in 2020.
“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.
Gross written premiums grew by 3% 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% to P341.7 million from P136.4 million in 2019, resulting from higher reinsurance premium income and lower loss ratios.
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% from 104% in 2019.
A combined ratio below 100% indicates the company is making an underwriting profit, while a combined ratio above 100% means the company is paying more claims and expenses versus premiums.