National Reinsurance Corp. of the Philippines, the only professional reinsurer in the country, said Friday that it was assigned by the Philippine Rating Service Corp. a financial strength rating of PRS A, with a stable outlook.
An insurer rated PRS A has strong financial security characteristics but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies. Its stable outlook indicates that the rating will be maintained or remain unchanged in the next 12 months.
The credit rating and outlook took account of Nat Re’s solid market franchise, shareholders of good standing, experienced management, sound investment portfolio and more than ample capitalization..
As the only domestic professional reinsurance company, Nat Re is allowed by law to take up at least 10 percent of all the domestic insurance companies’ outward reinsurance business. This gives Nat Re significant access to the local reinsurance business, as well as a broader view of domestic insurers’ reinsurance requirements.
The Government Service Insurance System, a government-owned and controlled corporation mandated to provide and administer social security benefits for government employees, remains as Nat Re’s largest shareholder. GSIS owns 25.8 percent of Nat Re while Mico Equities, Inc. and Bank of the Philippine Islands hold 12.9 percent and 13.7 percent, respectively.
At the end of 2022, Nat Re’s total investment assets stood at P9.2 billion. Nat Re has an equity of P5.8 billion at the end of September.
