Global credit rating agency AM Best has reaffirmed its solid rating for National Reinsurance Corp. of the Philippines (Nat Re) and kept its rating outlook at stable. AM Best maintained Nat Re’s Financial Strength Rating of B++ (Good), Long-Term Issuer Credit Rating of “bbb” (Good), and Philippine National Scale Rating of aa+.PH (Superior).
AM Best said the ratings reflect Nat Re’s strong balance sheet, adequate operating performance, neutral business profile, and sound enterprise risk management.
The company’s capital strength remains robust, with year-end 2024 capitalization at the “strongest level,” based on AM Best’s Capital Adequacy Ratio (BCAR). Nat Re also benefits from solid financial flexibility and a moderately risky investment portfolio, mostly in Philippine government bonds.
While underwriting performance improved due to lower acquisition and management costs, Nat Re’s loss ratio in 2024 was impacted by higher experience refunds to cedents and unfavorable prior-year life claims. Investment income from interest and dividends continued to support overall earnings.
Nat Re, the country’s only domestic reinsurer, remains well-positioned with exclusive access to local business through mandatory cessions and long-standing ties with local insurers. It is also expanding through new underwriting facilities, enabling it to write more business beyond mandated levels.
AM Best expects Nat Re’s forward performance to be driven by growth in profitable segments, improved non-life underwriting, and continued risk management.
AM Best, based in the U.S., is a global credit rating agency focused on the insurance industry, with offices in Singapore, London, and other financial hubs.
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