The National Reinsurance Corporation of the Philippines (Nat Re) has announced that it marked the 45th anniversary of its founding with record figures in 2023, posting a massive 862% increase in net profits driven by the corporation's underwriting and investment incomes.
During its annual shareholders’ meeting held on 26 June 2024, Nat Re announced its record net profit of PHP536.1m ($9.2m) in 2023 from PHP55.7m. This was attributed to the reinsurer’s outstanding performance in both its underwriting and investment operations, which respectively saw a 142% and 121% surge in 2023.
Nat Re’s net underwriting income reached PHP572.5m in 2023, while investment and other income doubled from PHP215.m in 2022 to PHP476.4m. This, according to Nat Re president and CEO Allan R Santos, 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.
Nat Re’s total assets breached the PHP20bn mark at PHP20.4bn, posting a 12% year-on-year increase from 2022. Additionally, gross reinsurance premium revenues were up 44% to PHP4.3bn, while stockholders’ equity increased by 12% to PHP6.25bn.
Reaching beyond borders
Mr Santos also said that the company’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.
In 2023, Nat Re started to reinsure Health Maintenance Organisations (HMOs) through the Insurance Commission’s Regulatory Sandbox Framework for Innovations, allowing HMOs to offer higher benefit limits and expanded coverages to their customers.
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.
With its record 2023 performance, Nat Re — which was founded in June 1978 — is looking forward to new gains in 2024 on the back of better reinsurance market conditions.