AM Best has affirmed the credit ratings of National Reinsurance Corp. of the Philippines (NatRe), citing strong capitalization and improved underwriting performance, while warning that the country’s sole domestic reinsurer remains exposed to major natural catastrophes.
The U.S.-based insurance rating agency maintained NatRe’s Financial Strength Rating at B++ (Good), Long-Term Issuer Credit Rating at “bbb” (Good) and Philippine National Scale Rating at aa+.PH (Superior), all with stable outlooks.
NatRe’s risk-adjusted capitalization, measured by AM Best’s Capital Adequacy Ratio (BCAR), stood at the strongest level at the end of 2025, supported by good financial flexibility.
Its investment portfolio carries moderate risk, with most assets held in Philippine government fixed-income securities.
AM Best cautioned that NatRe remains vulnerable to large natural catastrophe losses, although its retrocession program, which transfers part of its risks to other reinsurers, provides some protection.
NatRe posted an average return on equity of 6.8% from 2021 to 2025. Underwriting performance improved last year on favorable claims development in its non-life business and stronger margins from its growing life insurance operations, while interest and dividend income continued to support earnings.
As the Philippines’ only domestic reinsurer, NatRe benefits from established relationships with local insurers and mandatory reinsurance cessions, which provide a steady source of business.
AM Best said government initiatives and new underwriting facilities could create opportunities for NatRe to expand its business beyond mandatory cessions.
