AM Best affirms Nat Re's rating

AM Best [4] has confirmed the "B++" (good) financial strength and "bbb" (good) long-term credit ratings of National Reinsurance Corporation of the Philippines (Nat Re). The outlook remains stable.

This decision reflects, among other things, the company's adequate operating performance, demonstrated by a five-year (2018-2022) average return on equity (ROE) of 2.3%.

The company's commercial profile is neutral. As the only domestic reinsurer in the Philippines, Nat Re has a strong relationship with local cedants and access to business through mandatory local cessions.

The rating is also indicative of the company's strong balance sheet, underpinned by a high level of risk-adjusted capitalization and appropriate enterprise risk management.