The Philippine Rating Services Corporation (PhilRatings) has assigned a financial strength rating of PRS A plus, with a Stable Outlook, to the National Reinsurance Corporation of the Philippines (NRCP), the country’s sole professional reinsurer.
A PRS A rating signifies that NRCP possesses strong financial security characteristics, indicating a robust ability to meet its financial obligations to policyholders. While exhibiting sound financial health, companies in this rating category are considered somewhat more susceptible to the impact of adverse business conditions compared to entities with higher ratings. The “plus” designation further enhances the assigned rating.
The Stable Outlook indicates PhilRatings’ expectation that NRCP’s assigned rating is likely to be maintained or remain unchanged over the next 12 months.
In arriving at the rating and Outlook, PhilRatings cited several key strengths of NRCP, including:
- Solid Market Franchise: NRCP benefits from its established position as the sole professional reinsurer in the Philippines, providing it with a significant advantage in the market.
- Strong Shareholders and Highly-Experienced Management: The company’s robust shareholder base and the extensive experience of its management team contribute to its stability and strategic direction.
- Sound Investment Portfolio: NRCP’s prudent investment strategies and the quality of its investment holdings provide a solid foundation for its financial strength.
- Marked Improvement in Profitability: PhilRatings recognized the significant positive trend in NRCP’s profitability, demonstrating enhanced operational efficiency and financial performance.
- Above Satisfactory Capitalization: NRCP’s capital position is deemed more than adequate to support its underwriting and operational risks, providing a strong buffer against potential losses.
This positive rating from PhilRatings underscores NRCP’s commitment to financial strength and its ability to serve the reinsurance needs of the Philippine insurance market.
The National Reinsurance Corporation of the Philippines (NRCP) is the sole professional reinsurer in the Philippines. NRCP plays a crucial role in supporting the growth and stability of the local insurance industry by providing reinsurance capacity and expertise.
