Nat Re Philippines’ well-positioned for business opportunities and new services

Its investment portfolio faces moderate risk and its balance sheet is sensitive to natural catastrophes.

The National Reinsurance Corporation of the Philippines (Nat Re Philippines) is assessed to have a strong balance sheet, neutral business profile, and adequate enterprise risk management by AM Best.

“Nat Re is well-positioned for business opportunities emanating from local government initiatives and new service offerings, which include its 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,” AM Best wrote in a credit report on 9 October 2025.

Nat Re’s investment portfolio has moderate risk with the majority of assets allocated to fixed-income securities issued by the Philippine government, AM Best noted.

Its balance sheet also remains sensitive to outsized natural catastrophe events, although this risk is mitigated partially by the company’s retrocession programme, it added.

Underwriting performance has reportedly improved, driven by an improved expense ratio resulting from lower net acquisition costs and management expenses relative to earned premiums.

However, in 2024, the loss ratio was impacted negatively by an increase in experience refund to cedents due to better than anticipated loss experience, and unfavourable prior year claims development stemming from the company’s life portfolio, AM Best noted.

Investment income, arising mainly from interest and dividend income, continues to contribute positively to operating earnings.

Business profile as neutral. Nat Re is the sole domestic reinsurer in the Philippines, benefiting from strong relationships with locals and access to business through mandatory local cessions.