THE NATIONAL Reinsurance Corporation of the Philippines (Nat Re) has obtained a “PRS A” financial strength rating with a “stable” outlook from local debt watcher Philippine Rating Services Corp. (PhilRatings). READ:
In a statement on Monday, the country’s sole local reinsurer said its latest rating indicates the company’s “strong financial security” while a “stable” outlook meant this may be maintained in the next 12 months.
“Nat Re has a unique advantage granted by the law, which is that of being entitled to take up a minimum 10% share of all the outward reinsurance business of domestic insurance companies, and which would otherwise be ceded abroad,” the local debt watcher said. Nat Re is also part of the East Asian Insurance Congress , the ASEAN Reinsurance Working Committee, and an active member of the Philippine Insurers and Reinsurers Association. In 2021, Allan R. Santos, Nat Re’s chief executive officer, was appointed president of EAIC.
Other major shareholders of Nat Re include Bank of the Philippine Islands and MICO Equities, Inc. with 13.7% and 12.9%, respectively. “Notwithstanding its sound investment portfolio and more than adequate capital, Nat Re has been facing a number of external headwinds. Over the last three to five years, the industry has seen that growth in catastrophe losses has outpaced the growth in premium rates,” PhilRatings said.