THE NATIONAL Reinsurance Corp. of the Philippines (Nat Re) was allowed by the Insurance Commission (IC) to continue its operations for another two years.
In a disclosure to the local bourse on Thursday, Nat Re said that the commission has renewed its certificate of authority, which will be valid until 2021.
“The renewed certificate…reaffirms the financial stability of the country’s authorized professional reinsurance company and its stability to continue to serve and pay claims to its client companies,” Nat Re said.
Earlier this month, Nat Re was given a financial strength rating of “PRS A” by the Philippine Rating Services Corp. (PhilRatings), two notches below the highest grade.
A PRS A rating means that the country’s sole domestic reinsurer has a “strong” financial security characteristics. However, it is “somewhat more likely” to be affected by unfavorable market conditions compared with higher-rated insurers.
Despite this, PhilRatings said Nat Re’s profitability remains to be volatile given the “inconstant growth across business lines and higher-than-expected loss and expense ratios.”
As of the third quarter of last year, Nat Re said its net worth was already well beyond the P3-billion minimum regulatory requirement for end-2022.
Nat Re was incorporated on June 7, 1978 as a professional reinsurance firm providing life and non-life reinsurance to the Philippines as well as in neighboring countries.
Nat Re shares stood at P1.03 apiece yesterday, up eight centavos or 8.42% from the previous close. — K.A.N. Vidal