PhilNare income up 9% despite typhoon claims
Daily Tribune; Business; P9
July 1, 2010
National Reinsurance Corp. of the Philippines (PhilNare), during
its annual stockholders’ meeting last June 29, 2010, indicated 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. PhilNare
president Roberto Crisol attributed the profit rise to the company’s effective risk
management, its financial strength and its stable and profitable investment portfolio.
In his report, Crisol said 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 added 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, over-all 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.
PhilNare chairman Winston Garcia, in his message to stockholders, also cited the
other achievements of the company over the last five years, including its successful
merger with Universal MalayanRe in 2006 which made PhilNare the sole domestic professional
reinsurer and its listing in the Philippine Stock Exchange in 2007.
The company also embarked on an integrated computerization project in 2009 which went
on-stream last month.
He also pointed out that the New York-based global credit rating organization,
A.M. Best, has reaffirmed PhilNare’s financial strength rating of B++ and stable outlook.