National Reinsurance bags investment grade rating

MANILA, Philippines — The National Reinsurance Corporation of the Philippines (NRCP), the  country’s  sole domestic professional reinsurer, was assigned a financial strength rating of PRS A by the Philippine Rating Services Corp. (PhilRatings). 

A PRS A rating means that an insurer has strong financial security characteristics, but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies.

The assigned financial strength rating takes into consideration NRCP’s solid market franchise, shareholders of good standing, experienced management, sound investment portfolio and the expectations of continued industry growth. 

PhilRatings also took into account the company’s volatile profitability.

As the only domestic professional reinsurance firm in the country, NRCP has a solid market franchise.

As granted by the law, NRCP is entitled to take up a maximum 10 percent share of all the reinsurance business ceded abroad. This gives NRCP unparalleled access to domestic reinsurers’ business, and also a broader view of their reinsurance requirements.

The company’s marketing strategy is supported by its technical know-how, industry track record and familiarity with the domestic market.

As of the end of June 2018, the Government Service Insurance System (GSIS) continued to be NRCP’s largest shareholder, with a 25.7 percent stake.

 GSIS is the sole government-owned and controlled corporation mandated to provide and administer social security benefits for government employees.