Philippines’ sole skilled reinsurer receives robust monetary ranking

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Philippines’ sole skilled reinsurer receives robust monetary ranking | Insurance Business America















Total funding property of the agency valued at PHP9.2 billion

Philippines' sole professional reinsurer receives strong financial rating


Reinsurance

By
Kenneth Araullo

Philippine Rating Services Corporation (PhilRatings) has assigned the National Reinsurance Corporation of the Philippines (Nat Re), the nation’s sole skilled reinsurer, a monetary energy ranking of PRS A with a secure outlook, signifying that Nat Re possesses robust monetary safety traits, although it could be extra inclined to antagonistic enterprise circumstances than insurers with larger rankings.

Nat Re’s secure outlook signifies the chance of this ranking remaining constant over the following 12 months. This ranking and outlook mirror a number of elements, together with Nat Re’s established market presence, respected shareholders, skilled administration staff, sound funding portfolio, and strong capitalization.

As of the top of 2022, Nat Re’s complete funding property had been valued at PHP9.2 billion, rising to PHP9.7 billion by the top of June 2023. The firm’s funding portfolio is predominantly low-risk, with 92.4% allotted to mounted revenue investments and seven.6% to equities as of end-June 2023. Government securities type many of the mounted revenue portfolio, adopted by company bonds. For fairness investments, firms listed on the Philippine Stock Exchange (PSE) comprise 94%.

With an fairness of PHP5.8 billion as of end-September 2023, Nat Re comfortably exceeds the minimal web value requirement of P3.0 billion set by the Insurance Commission (IC). The firm’s risk-based capital (RBC) ratio additionally considerably surpasses the IC’s minimal requirement of 100%. Nat Re anticipates sustaining compliance with regulatory capitalization requirements sooner or later.

Nat Re is exclusive within the Philippine insurance coverage market as it’s the solely home skilled reinsurance agency. Legislatively, it has the benefit of being entitled to a minimal of 10% of all outward reinsurance enterprise from home insurance coverage firms.

This privilege additionally supplies Nat Re with vital entry to native reinsurance enterprise and perception into the reinsurance wants of home insurers.

The state-owned Government Service Insurance System (GSIS) is the most important shareholder in Nat Re, holding a 25.8% stake. The Yuchengco Group’s Mico Equities, Inc. (MEI) and the Bank of the Philippine Islands (BPI) are different main shareholders, with possession pursuits of 12.9% and 13.7%, respectively.

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