Charter Ping An gross premiums up 19%

Ted P. Torres - The Philippine Star

MANILA, Philippines - Charter Ping An Insurance Corp., the non-life insurance arm of theMetrobank Group, has recorded a 19-percent increase in gross premiums written (GPW) in the first four months of 2014.

From P1.1 billion as of end April 2013, GPW rose to P1.3 billion in the same period this year. Retention ratio remained at a strong 52 percent.

Subsequently, net premiums written (NPW) and net premiums earned both rose 18 percent.

GPW is the sum of both direct premiums written and assumed premiums written before the effect of ceded reinsurance.

NPW is the sum of all types of insurance premiums which a company may collect throughout the whole duration of existing insurance policies minus the costs like agent`s commissions or payments made for reinsurance.

However, net income fell 12 percent, or from P83.8 million in the first four months of 2013 to P73.7 million this year.

Charter Ping An president Melecio C. Mallillin said that the losses came mainly from massive pay outs from areas devastated by Super Typhoon Yolanda and other natural catastrophes.

Mallillin however assured that the insurer was well capitalized to meet all future claims. The insurer has a paid up capital of P350 million and net worth of over P1.22 billion.

Charter Ping An writes policies based on its ability to service its customers not on unrealistic sales targets.

“An insurer must have a good and healthy balance between costs and risks,” the chief executive said.

Nonetheless, Charter Ping An, which ranked among the top 10 non-life insurers last year, is looking to double its net earnings this year to P250 million.

That represents covering losses from the previous year, plus positive earnings from the rest of the year.

Last year, GPW rose by 21 percent to P3.5 billion, eclipsing the record P2.9 billion in the whole of 2012.

Net income slipped by 12 percent to P190 million, coming mainly from the number of major natural disasters that affected the country.

NPW’s rose by 13 percent to P1.8 billion but net underwriting reported a 35-percent drop to P130 million.

Net investment income and other income rose by 33 percent last year, or from P89.4 million to P119 million in 2013.

Retention ratio remained above 50 percent.

“Strong provincial sales marked our critical gains last year,” Mallillin said, adding that fire and auto insurance accounted for 70 percent of total sales in the same period.

Forty percent of its client base are affiliates of GT Capital, a holding company which includes the Toyota Group, Federal Land Inc., Philippine Savings Bank (PSBank), and the rest of the Metrobank Group.

However, strong provincial sales marked gains in 2013; fire and auto accounted for 70 percent of total sales; ….other lines were marine, cargo, casualty, surety bonds.

Charter Ping An offers standard non-life insurance products such as motor/car insurance, fire insurance, bonds, marine insurance, personal accident insurance, engineering insurance and casualty insurance, and all other non-life insurance services.

It was formerly known as the Philippine Charter Insurance Corp.

  • Latest
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with