NATIONAL Reinsurance Corp. of the Philippines (Nat Re) said net profit fell in 2017 due to reinsurance payouts for calamities and fires.
In a regulatory filing Friday, Nat Re said it booked a net profit of P50 million in 2017, down 35%.
The listed reinsurance firm attributed the lower profits to “massive global insured losses from catastrophe events and large single fires affecting the local non-life industry.”
“Although Nat Re’s results were not as good as one would hope, we were able to effectively safeguard the company from severe losses because of significant improvement in our portfolio diversification and our limited exposure to US and North Americal risks,” Nat Re President and Chief Executive Officer Augusto P. Hidalgo was quoted as saying in the disclosure.
In a Reuters report in April, Swiss Reinsurance Company, Ltd. (Swiss Re) estimated that global insured losses from catastrophes in 2017 hit a record $144 billion.
Swiss Re said North America was hard hit last year as hurricanes Harvey, Irma and Maria brought insured losses of $92 billion.
Nat Re said the P50 million profit was supported by an underwriting profit of P204 million.
Net written premiums grew 40% to P1.9 billion in 2017 with net written premiums in its life business rising 49%.
Nat Re posted P255 million in realized investment income last year on the back of the bullish equity market. Comprehensive investment income rose to P604 million in 2017 by 275% from the previous year.
In 2017, Nat Re said its life unit added three clients to reinsurance programs it leads.
Its non-life segment on the other hand closed 16 new contracts, increased shares in 29 renewal contracts and secured new lead insurer positions with two companies.
“[W]e endeavor to create meaningful and lasting relationships with our partners and find ways to share with them our industry knowledge and build their capabilities,” Mr. Hidalgo said.
Nat Re shares closed at P1.05 on Friday, down three centavos or 2.78%. — Karl Angelo N. Vidal