AM Best Affirms Credit Ratings of National Reinsurance Corporation of the Philippines

SINGAPORE--(BUSINESS WIRE)--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) (Philippines). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Nat Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

Nat Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), 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 the majority of assets allocated to fixed-income securities issued by the Philippines government. Additionally, Nat Re’s balance sheet remains sensitive to outsized natural catastrophe events, although this risk is mitigated partially by its retrocession programme.

AM Best assesses Nat Re’s operating performance as adequate, with a five-year average return-on-equity ratio of 6.8% (2021-2025). 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, arising mainly from interest and dividend incomes, continues to contribute positively to operating earnings.

AM Best assesses Nat Re’s business profile as neutral. The company is the sole domestic reinsurer in the Philippines, benefiting from strong relationships with local cedants and access to business through mandatory local cessions. Nat Re is well-positioned for business opportunities emanating from local government initiatives and new service offerings, which include engagement in the design and launch of underwriting facilities in the Philippine market, enabling it to write greater business volumes in excess of the level stipulated by the mandatory cessions. The company writes non-life and life reinsurance, and its underwriting portfolio is viewed to be diversified moderately by geography.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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