Nat Re Credit Ratings Affirmed, Outlook Stable – AM Best
KUALA LUMPUR, Oct 12 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of B++ (Good), the long-term issuer credit rating of “bbb” (Good) and the Philippines National Scale Rating of aa+.PH (Superior) of National Reinsurance Corporation of the Philippines (Nat Re).
The outlook of these credit ratings (ratings) is stable, reflecting Nat Re’s strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management, according to AM Best in a statement.
Nat Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which was at the strongest level at year-end 2025, as well as its good financial flexibility.
AM Best views the company’s investment portfolio as having moderate risk, with most assets allocated to fixed-income securities issued by the Philippines government. Its balance sheet remains sensitive to outsized natural catastrophe events, although this risk is partially mitigated by its retrocession programme.
AM Best assesses Nat Re’s operating performance as adequate, with a five-year average return on equity of 6.8 per cent from 2021 to 2025.
In 2025, the company’s underwriting performance improved, driven by favourable claims development in its non-life portfolio and robust margins from its growing life business. Investment income, mainly from interest and dividends, continues to contribute positively to operating earnings.
The credit rating agency also assesses Nat Re’s business profile as neutral. The company is the Philippines’ sole domestic reinsurer, benefiting from strong relationships with local cedants and access to business through mandatory local cessions.
Nat Re is well-positioned to pursue opportunities arising from local government initiatives and new service offerings. These include participating in the design and launch of underwriting facilities in the Philippine market, enabling it to write business volumes beyond those stipulated by mandatory local cessions.
-- BERNAMA