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NATIONAL
Reinsurance Corp. of the Philippines (PhilNaRe) said its
net income for the first half fell 41 percent to P192
million from the year-ago level of P322 million.
The
company said the decline was triggered by lower
reinsurance premiums which amounted to P1.2 billion from
P2 billion last year. However, net reinsurance premiums,
which represent the portion of gross premiums that the
company retains for its own account, rose 21 percent to
P647 million from P537 million a year ago.
“This
increase in the retention ratio was reflective of the
company’s strong financial position and capital base,
which allowed it to shoulder more reinsurance risk for
its own account,” said president and chief executive
Wilfrido Bantayan. While the company is now in a
position to accept larger risks, he said underwriting
policies have remained conservative.
“We will
not sacrifice the quality of our reinsurance portfolio
for simple growth. We are as selective in our acceptance
of risk with P6 billion of capital as we were when our
capital was P1 billion,” he said.
PhilNaRe
is in search of a strategic investor that can bring in
additional capital and expertise. Chairman Winston
Garcia said the entry of an investor will mean an
ownership of 20 percent to 30 percent in the company.
“That
will involve around 800 million shares to be taken from
our unissued stocks,” he said earlier. PhilNaRe has
outstanding shares of 2.2 billion.
Garcia
said they will sell the shares at a premium, or more
than the book value of P2.80 apiece. PhilNaRe has
commissioned investment bank Rothschild as financial
adviser for the sale.
“Our
future partner will serve us in good stead as we venture
further into the Asian reinsurance markets,” he said.
Proceeds
from the sale will be used to augment the company’s
capital and allow it to expand coverage. |
