National Reinsurance Corporation of the Philippines Bullish as it Marks 45th Year with Record Income

The National Reinsurance Corporation of the Philippines (Nat Re) marked its 45th anniversary with record figures in 2023, posting a massive 862% increase in net profits driven by the Corporation’s underwriting and investment incomes.

Nat Re announced a record net profit of P536.1 million in 2023 at its Annual Stockholders' Meeting on June 26, 2024, at the Carlos P. Romulo Auditorium at RCBC Plaza, Makati City, up from P55.7 million in 2022. This was credited to the corporation's remarkable performance in both underwriting and investment activities, which increased by 142% and 121%, respectively, in 2023.

Nat Re's net underwriting income increased to P572.5 million in 2023, while investments and other revenue doubled from P215.4 million in 2022 to P476.4 million. This, according to Nat Re President & CEO Allan R. Santos, was mostly attributable to the company's active asset-liability management efforts and underwriting actions, which were aided by last year's higher interest income and benign disaster loss experience.
​
Nat Re's total assets surpassed the P20 billion threshold at P20.4 billion, representing a 12% gain over 2022. Furthermore, gross reinsurance premium income surged by 44% to P4.3 billion, while stockholders' equity rose by 12% to P6.25 billion.

Santos further stated that the company's 2023 success was the result of the company's ongoing attempts to expand both 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.
​
Nat Re began reinsuring Health Maintenance Organizations (HMOs) in 2023 under the Insurance Commission's Regulatory Sandbox Framework for Innovations, allowing HMOs to provide higher benefit limits and wider coverage to their customers.

Nat Re also established a Casualty Facility to help cedants develop new lines of business, such as products and public liability.
​
Nat Re expects to make new gains in 2024 as reinsurance market conditions improve, following its record success in 2023.

“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 said.

National Reinsurance Corporation of the Philippines (Nat Re) provides life and non-life reinsurance capacity, and in relation to this offers consultancy, technical, and advisory services to its clients—the direct insurers—in emerging markets. Its services allow direct insurers to better manage their retention and capital, to maximize their net premiums given their risk appetites, and to execute their roadmaps to competitiveness.

Nat Re also stimulates know-how transfer in the industry by helping build its clients’ capabilities in underwriting, product development, pricing, retention setting, and reinsurance program analysis. It continuously derives insights from experience and shares with its partners its knowledge of emerging markets, particularly of the Philippine insurance market, and curated global best practices in reinsurance.