MALAYAN Insurance Co., Inc. expects its 2024 bottom-line growth to be affected by typhoons, its top official said.
“I mean, we’re still trying to grow, but definitely that (typhoons) has an impact on the bottom line because of all the losses,” Malayan Insurance President and Chief Executive Officer Paolo Y. Abaya told BusinessWorld.
“These climate change-related catastrophes have really hurt… So, it hasn’t been that good because of those catastrophes,” Mr. Abaya added.
Malayan Insurance booked a net income of P600.77 million in 2023, data from the Insurance Commission (IC) showed.
Its net premiums written stood at P4.72 billion, with premiums earned at P4.27 billion and gross premiums written at P15.05 billion.
The overall performance of the nonlife insurance industry could likewise be affected by natural disasters, Mr. Abaya said.
The nonlife insurance sector’s net premiums written increased by 10.19% to P53.13 billion as of end-September 2024 from the same period last year, IC data showed. Its net income grew by 17.17% to P6.41 billion.
Despite this, Malayan Insurance still expects its 2024 top line to grow by 5-10%, Mr. Abaya said. For this year, they see “flat or modest” premium growth amid elevated global reinsurance costs.
“It’s been very hard. It’s been a hard market lately, and it will probably continue to be hard next year… Everywhere around the world is getting hit by climate change right now. So, it’s driving all the prices to go up,” Mr. Abaya said.
“It’s really the reinsurance cost driving up all of these charges, especially if you’re in property.”
In the Philippines, nonlife premium rates have gone up by about 10-15% because of high reinsurance costs, Malayan Insurance Chief Operating Officer Eden R. Tesoro earlier said.
This has caused the company to stop writing premiums for several clients, resulting in a 5-6% loss in gross premiums written, she said, although some are still opting to stay despite high prices, offsetting losses. — A.M.C. Sy