PhilNaRe posts profit despite crunch
June 22, 2009
The National Reinsurance Corp. of the Philippines (PhilNaRe) posted a P94-million profit last year, weathering a bad year that saw its first underwriting loss in 19 years.
Net income fell from P609 million in 2007 as the reinsurance firm suffered losses particularly from its property and marine hull portfolios which were aggravated by weather related claims. Major losses soared from P48 million in 2007 to P561 million last year. Earnings per share likewise fell to P0.04 in 2008 from P0.31 in the previous year while total gross claims of the company rose from P609 million to P1.24 billion last year.
PhilNaRe President and CEO Roberto B. Crisol, however, said the company was able to absorb the severity of losses mainly because of its strong capital base.
According to Crisol, PhilNaRe’s paid up capital rose from P614 million in 2004 to P2.18 billion in 2007-2008. The company’s net worth also leapt from P1.12 billion in 2004 to P5.95 billion in 2007.
“PhilNaRe’s financial strength and resilience has allowed it to continue providing quality service to its clients. With adequate risk-adjusted capitalization, established local presence, stable combined ratio and conservative investment portfolio, we look forward to a better performance this year as we work towards our goal of premium growth by 2011,” said Crisol.