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PhilNaRe's profit falls after paying for marine accident claims


MANILA, Philippines - The National Reinsurance Corp. of the Philippines (PhilNaRe) said profit fell by more than half as it paid claims to beneficiaries of marine accident victims, including those in the Princess of the Stars tragedy. Net income for the third quarter of 2008 plunged 52 percent to P45.8 million from P95.6 million during the same period last year, the company said in a disclosure to the Philippine Stock Exchange (PSE). Claims and losses from July to September reached P236.2 million, 73.4 percent more than last year’s P136.2 million, said PhilNaRe, which helps other firms share their insurance risks. “Claims incurred in the current quarter include large marine losses including, among others, Princess of the Stars, Sea Bass Carriers, and Oceanic Container Line," the company said. However, the company earned from foreign currency gains as its investments and other income reached P119.4 million during the three-month period, higher than the P82.1 million reported from July to September last year. During the period, expenses climbed to P43 million, 45.67 percent more than the P30 million it spent last year. The company hiked employee benefits and salaries and paid taxes, licenses, and professional fees. Earnings for the first nine months declined due to the fall in underwriting and investment income. “Net income for the first three quarters was P238 million, P179 million or 43 percent lower than last year’s performance," the company said. Meanwhile, expenses for the nine-month period went up by 37.5 percent to P123.6 million as against last year’s P89.9 million. On the other hand, investment and other income declined by 6.6 percent to P350.4 million in the first nine months of 2007, the company said. “The decline was largely due to the absence of trading opportunities during the period owing to the steep drop in the Philippine stock market," the company said. “Higher interest rates also negatively affected the valuation of the company’s investment portfolio, which is concentrated largely in fixed-income investments." - GMANews.TV
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