MANILA, Philippines - National Reinsurance Corp. of the Philippines (PhilNaRe) announced during its annual stockholders’ meeting that it ended 2009 on a positive note despite an unfavorable insurance market and claims arising from super typhoons “Pepeng” and “Ondoy”.
Notwithstanding poor business conditions and unprecedented weather-related claims, PhilNaRe’s net income increased by nine percent to a total of P103 million. Roberto Crisol, PhilNaRe president and CEO, attributed this to the company’s effective risk management, its financial strength and its stable and profitable investment portfolio.
In his report, Crisol said that investment and other income increased by four percent to P467 million in 2009, a year when positive trends prevailed in Philippine equities and bonds. With PhilNaRe continuing to invest in high-quality fixed-income government securities and corporate bonds, interest income recorded a two percent increase to P382 million. Other income, comprised largely of dividend and trading income, achieved a gain of P108 million compared to a loss in the previous year.
PhilNaRe ended the year with P1.3 billion in net premiums, a decline of 17 percent from the previous year due to stricter underwriting measures it adopted in its non-life portfolio. However, its life reinsurance operations still posted a growth rate of four percent and generated gross premiums of P531 million in 2009.
Crisol also said the healthy underwriting profits registered by the life business and casualty lines more than compensated for losses experienced by the fire and marine hull portfolios. Consequently, overall underwriting income swung back to a profit of P32 million after suffering a negative result in the previous year.
Stockholders’ Equity went up by over three percent to P6.15 billion as well, among the highest in the domestic insurance market.