Nat Re's business in position to capitalise from local gov't initiatives
Nat Re's underwriting portfolio is moderately diversified by geography.
National Reinsurance Corporation of the Philippines (Nat Re) was described to have a “neutral” business profile, AM Best said.
The Philippine domestic insurer benefits from strong relationships with local cedants and gains access to the business through mandatory local cessions.
This position allows Nat Re to capitalise on business opportunities arising from local government initiatives.
The company actively engages in designing and launching underwriting facilities in the Philippine market, enabling it to write more business volumes beyond the level stipulated by mandatory cessions.
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Nat Re's underwriting portfolio is moderately diversified by geography, and it operates in both the non-life and life reinsurance sectors.
In recent times, Nat Re has strategically shifted its product mix towards the domestic life reinsurance segment, leading to improved portfolio diversification.
Further, the rating agency, considers Nat Re's enterprise risk management (ERM) approach appropriate given the company's current size and complexity of operations.
The company's risk management framework and corporate governance capabilities have demonstrated strengthening over the past few years, indicating a positive direction for the company.