The National Reinsurance Corporation of the Philippines or Nat Re has received a strong financial security rating as it continue to grow sound investments.

In a disclosure to the Philippine Stock Exchange on Friday, Nat Re said it has been rated PRS A by the Philippine Rating Services Corporation.

The rating means Nat Re has a solid market franchise, shareholders with good standing, experienced management, sound investment portfolio and more than ample capitalization.

Strong performance

Nat Re shared the rater agency expects it to retain the strong performance in the next 12 months as it maximizes economic opportunities.

The Philippine law allows Nat Re, the sole domestic professional reinsurer, to take up at least 10 percent of all the domestic insurance companies' outward reinsurance business.

"This gives Nat Re significant access to the local reinsurance business, as well as a broader view of domestic insurers' reinsurance requirements," the corporation said.

As a reinsurer for life and non-life insurance, Nat Re ensures that insurance firms continue to provide service to their clients, helping protect Filipinos' wealth and ultimately contribute to national economic growth.

Shareholders

Among Nat Re's shareholders, the biggest is the Government Service Insurance System with 25.8 percent stake, followed by Bank of the Philippine Islands or BPI (13.7 percent), and Mico Equities Inc. or MEI (12.9 percent).

As of June this year, Ayala-led BPI ranked as the third biggest domestic universal bank in terms of assets amounting to P2.7 trillion.

Meanwhile, MEI serves as the holding company for the Yuchengco-led non-life insurer Malayan Insurance, which received this year a good rating or B++ for financial strength from credit rater A.M. Best.

Malayan Insurance was also named last year as the largest domestic non-life insurance company based on gross premiums written.

Malayan Insurance chief underwriting officer Eden Tesoro said more companies would realize the need for insurance for real estate assets amid the growing concerns with extreme flooding due to climate change and earthquakes, among others.

More value in difficult times

"In difficult economic situations, I think insurance has even more value because you risk bigger. And when you get hit, the ability to get out of that financial hit your resources is already depleted," she said.

Similarly, Nat Re continued to expand investment assets which reached P9.7 billion in June, up from P9.2 billion recorded last year.

Nat Re said it shifted investment strategy last year into 90 percent fixed income securities and only 10 percent equities amid high interest rates.