The National Reinsurance Corporation of the Philippines (NRCP), the country’s sole professional reinsurer, has been assigned a financial strength rating of PRS A plus with a Stable Outlook by Philippine Rating Services Corporation (PhilRatings).
PhilRatings said the rating indicates strong financial security characteristics, though NRCP is somewhat more susceptible to adverse business conditions than higher-rated insurers.
The “plus” further qualifies the rating’s strength, while the Stable Outlook suggests the rating is likely to be maintained over the next 12 months.
The rating reflects NRCP’s strong shareholder base—including the Government Service Insurance System (25.8%), MICO Equities (12.9%), and Bank of the Philippine Islands (13.7%)—as well as experienced leadership under President and CEO Allan Santos, and a sound investment portfolio primarily comprising low-risk fixed income securities.
NRCP’s total investment assets reached ₱10.3 billion by end-September 2024, with 92.5% allocated to fixed income and 74.5% of that in government securities.
The company’s profitability significantly improved, with net income soaring to ₱536.1 million in 2023, up 862.5% from ₱55.7 million in 2022, driven by strong underwriting performance and growth in life and agriculture reinsurance.
Despite an 8.6% dip in gross premiums written (GPW) to ₱4.3 billion in the first nine months of 2024 due to lower domestic non-life business, NRCP recorded a 102.3% year-on-year increase in net income to ₱424.7 million for the period.
The company’s return on average assets stood at 2.8% in 2023, while its risk-based capital ratio was 227% as of end-September 2024, more than double the regulatory minimum.
NRCP ended 2024 with a net income of ₱551.3 million and total assets of ₱21 billion, maintaining compliance with the Insurance Commission’s ₱3 billion minimum net worth requirement.
Business News Asia