Asian Re net premium income jumps 24.8%

REGIONAL reinsurer Asian Reinsurance Corp. (Asian Re) posted double-digit growth in its net earned premiums (NEP) last year.

The Insurance Commission said in a statement issued last Monday that Asian Re’s NEP last year hit $19.19 million in 2021, jumping by 24.8 percent from the previous year’s $15.38 million.

NEP refers to the portion of premiums that apply to the expired portion of reinsurance policies after deducting further reinsurance, ceding commissions, cancellations and return premiums, if any, considered as “earnings” of the company.

Likewise, Asian Re’s net retained premiums, or its total reinsurance premiums written after deductions, also climbed by 21.7 percent to $20.66 million in 2021 from $16.97 million in 2020.

Its total gross accounted premiums (GAPS) also rose by 14.5 percent year-on-year to $23.47 million from $20.49 million in 2020. Total GAPS refer to the total reinsurance premiums written by Asian Re before deductions for further reinsurance and ceding commissions.

“The growth in these indicators shows that the Asia-pacific Region is recovering from the adverse economic effects of the Covid-19 pandemic,” said Insurance Commissioner and Asian Re Chairman Dennis B. Funa.

Based in Bangkok, Asian Re is the Asia-pacific region’s leading professional reinsurer. It is an intergovernmental organization established in May 1979 under the auspices of the United Nations Economic and Social Commission for Asia and the Pacific (Unescap).

It is owned by 10 governments comprising the Council of Members, namely: Afghanistan; Bangladesh; Bhutan; China; India; Iran; South Korea; Sri Lanka; Thailand; and, the Philippines.

Funa is serving his second 2-year term as Asian Re chairman after being re-elected last year. He was previously Asian Re’s vice chairman before being elected to the top post.

In May last year, AM Best, a Us-based credit rating agency that focuses on the insurance industry, affirmed Asian Re’s financial strength rating of “B+” (good).