NATIONAL Reinsurance Corporation of the Philippines (NRCP) posted a higher net income in the second quarter amid a climb in its underwriting profit as its premiums rose.
In its quarterly report posted on the local bourse on Wednesday, NRCP said it booked a P14.127-million net income in the second quarter, a reversal of the P31.017-million loss it posted in April to June last year.
The reinsurer’s net underwriting profit stood at P22.9 million in the three months ended June, up 164% from P35.7-million loss it booked in the same period last year.
“Positive underwriting results in 2019 mainly resulted from higher earned premiums, better loss experience…and lower commission costs…relative to premiums earned. Higher earned premiums in 2019 was due largely to higher net premiums written,” it said.
Net premiums written for the quarter went up 18% to P663 million from P561.4 million in the same period in 2018, “resulting mainly from business growth and lower cost of excess of loss facility in 2019.”
Gross premiums written net of returns amounted to P1.05 billion, 6% more than the P991 million booked last year.
This resulted in net premiums earned of P720 million for the second quarter, up 15% from the previous year’s P627.5 million.
“Higher net premiums earned in 2019 resulted mainly from higher net premiums written in 2019,” NRCP said.
The reinsurer’s second-quarter performance brought its first semester bottom line to P199.6 million, almost ten times its P18.5-million net profit in the same period last year.
NRCP’s assets totalled P14.683 billion as of June 30, 6% higher than the P13.871 billion booked at end-December 2018.
Shares in NRCP closed at P1.01 each on Wednesday, up three centavos or 3.06%.