The National Reinsurance Corporation of the Philippines (Nat Re) celebrated its 45th anniversary with record figures in 2023, posting a substantial 862% increase in net profits driven by the firms underwriting and investment incomes.
At its annual stockholders’ meeting, the organisation posted a record net profit of Php 536.1 million (US$9.11 million) in 2023, from Php 55.7 million (US$0.95 million) in 2022.
This significant increase was attributed to a 142% surge in underwriting income, as well as a 121% rise in investment operations.
Moreover, Nat Re’s underwriting income increased to Php 572.5 million (US$9.71 million) in 2023, while investments and other income doubled to Php 476.4 million (US$8.09 million).
According to the company’s President and CEO Allan R. Santos, this was primarily due to the company’s active asset-liability management efforts and underwriting actions, supported by last year’s higher interest income and benign catastrophe loss experience.
In addition, Nat Re’s total assets surpassed the Php20-billion mark at Php 20.4 billion (US$346.8 million), representing a 12% year-on-year increase from 2022.
While gross reinsurance premium revenues were up 44% to Php 4.3 billion (US$73.4 million), and stockholders’ equity increased by 12% to Php 6.25 billion (US$106.25 million).
Furthermore, Santos also stated that Nat Re’s 2023 success was a result of the company’s continued efforts to expand locally and internationally.
“Last year, we expanded our involvement in agriculture reinsurance globally, which marks a significant stride toward helping bolster food security and provide farmers with a financial safety net against unforeseen adversities such as extreme weather conditions which are becoming increasingly prevalent due to climate change,” he said, adding that the expansion also continued locally with the introduction of new products to address current market needs.
A key factor to note, in 2023, Nat Re started to reinsure Health Maintenance Organizations (HMOs) through the Insurance Commission’s Regulatory Sandbox Framework for Innovations, ultimately allowing HMOs to offer higher benefit limits and expanded coverages to their customers.
As well as this, Nat Re also introduced a Casualty Facility in a bid to assist cedants in developing new lines of business such as products and public liability.
“In 2023, we have proven again that collaborating with stakeholders and leveraging collective strengths lay the foundation of our thrust toward resilience and prosperity. And as we move forward, we endeavor to sustain and further our efforts to fulfill Nat Re’s purpose here and beyond,” Santos added.
