The National Reinsurance Corporation of the Philippines (Nat Re) celebrated its 45th anniversary with record-breaking figures in 2023, posting an 862% increase in net profits driven by strong underwriting and investment incomes.
At its annual stockholders’ meeting, Nat Re reported a net profit of ₱536.1 million in 2023, up from ₱55.7 million in 2022. The significant increase was attributed to a 142% surge in underwriting income and a 121% rise in investment operations.
Nat Re’s net underwriting income reached ₱572.5 million in 2023. Investments and other income doubled from ₱215.4 million in 2022 to ₱476.4 million.
According to Nat Re president and CEO Allan R Santos (pictured above), this performance was due to the company’s active asset-liability management and underwriting actions, supported by higher interest income and a lower incidence of catastrophe losses in the past year.
The company's total assets surpassed the ₱20-billion mark, reaching ₱20.4 billion, a 12% increase from 2022. Gross reinsurance premium revenues rose 44% to ₱4.3 billion, and stockholders’ equity grew by 12% to ₱6.25 billion.
Santos highlighted the company’s efforts to expand both locally and internationally as key factors in its 2023 success.
“Last year, we expanded our involvement in agriculture reinsurance globally, which marks a significant stride toward helping bolster food security and provides farmers with a financial safety net against unforeseen adversities such as extreme weather conditions,” he said. The expansion also included new products tailored to current market needs.
In 2023, Nat Re began reinsuring health maintenance organizations (HMOs) under the Insurance Commission’s Regulatory Sandbox Framework for Innovations, allowing HMOs to offer higher benefit limits and expanded coverage to their customers.
Additionally, Nat Re introduced a Casualty Facility to assist cedants in developing new lines of business, such as products and public liability.
Looking ahead to 2024, Nat Re is optimistic about achieving further gains amid improved reinsurance market conditions.
“In 2023, we have proven again that collaborating with stakeholders and leveraging collective strengths lay the foundation of our thrust toward resilience and prosperity. As we move forward, we endeavor to sustain and further our efforts to fulfill Nat Re’s purpose here and beyond,” Santos said.
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