PNB insurance unit sees P700M to P800M in losses

The nonlife insurance unit of Philippine National Bank expects to post P700 million to P800 million in losses arising from property damage claims following the string of natural disasters that hit the country last year.

PNB General Insurers Inc., a wholly owned unit of PNB, said the losses would stem from claims for property damage inflicted by Typhoons “Maring” and “Santi,” the Bohol earthquake and Supertyphoon “Yolanda,” which caused significant damage in Central Visayas and certain parts of Southern Luzon, PNB disclosed to the Philippine Stock Exchange.

“While the amount of the losses, particularly with respect to losses arising from Yolanda, has not been fully assessed at this time, PNB Gen estimates that the losses will be between P700 million and P800 million,” it said.

In addition, PNB said it was in the process of assessing the impact of Supertyphoon Yolanda on its owned and invested properties, as well as loans and receivables in affected areas.

PNB Gen, which started its operations in 1991, is backed by international reinsurers Munich Re-Germany, Toa Re-Japan, Sirius International-Sweden and Scor Re-France.

Jose Mari Lacson, head of research at local stock brokerage Campos Lanuza & Co., said recent calamities in the Philippines would likely affect how banks view risk management across their various businesses.

“A lot of banks have other non-banking related businesses,” Lacson said, noting that such was the previous case with Metropolitan Bank and Trust Co., which used to have a lot of noncore assets inside the main bank.  He said it was a good move for Metrobank to take out these assets (some were consolidated into parent firm GT Capital Holdings) because the move diversified risks.

Lacson said Philippine banks might need to reevaluate their nonbanking business portfolio.