THE National Reinsurance Corp. of the Philippines (PhilNaRe) registered a net loss of P135.2 million at end-September this year, from a net profit of P180 million in the same period last year.
In a regulatory filing, PhilNaRe said reinsurance premiums for the nine months totaled P1.7 billion, 14.3 percent, or P288.4 million less than the P2 billion from January to September last year.
The company saw a decline in nonlife facultative business by P193.1 million, or 22.4 percent, from P862.2 million in 2013 to P669.1 million for the nine months ended on September 30.
On the other hand, nonlife treaty business also decreased by P97.8 million, or 12 percent, from P814 million in 2013 to P716.2 million for the nine-month period.
Life business, however, slightly increased by P2.5 million, or 1 percent, from P338.5 million in 2013 to P341 million at end-September 2014.
Reinsurance premiums retained for the nine months amounted to P524 million, a decrease of P142.5 million, or 21.4 percent from P666.5 million in 2013.
“The decline was due to the increase in the premium cost of the excess of loss protection which also contributed to the decline in premiums earned from P651.7 million in 2013 to P516.6 million in 2014,” the company said.
Meanwhile, reinsurance premiums for the quarter at the end of September decreased by 25 percent, or P158.8 million, to P476.4 million from P635.1 million in the same quarter in 2013 owing to decline in both life with P84 million in 2014 versus P124.5 million in 2013, and nonlife treaty with P204.6 million in 2014 compared to P268.6 million in 2013, while nonlife facultative businesses dropped from P242.1 million in 2013 to P187.8 million in 2014.
Reinsurance premiums retained, as well as premium earned went down by 37.4 percent and 29.5 percent, respectively, due to higher cost of excess of loss protection premium recorded during the third quarter of the year amounting to P150.3 million as against P100.5 million in the third quarter of last year.
The company’s earnings per share was P0.06 and P0.08 as of third quarter of 2014 and 2013, respectively.
Retention ratio decreased from 33 percent in 2013 to 30 percent in 2014.
The return on average equity was negative 2.38 percent as of third quarter of 2014 compared to 2.82 percent as of third quarter of 2013.