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 an insurer rated PRS A has strong financial security characteristics but is somewhat more likely to be affected by adverse business conditions compared to higher-rated insurance companies. The “plus” further qualifies the assigned rating.

On the other hand, a Stable Outlook indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings said the assigned financial strength rating and Outlook take into account NRCP’s solid market franchise, strong shareholders and highly-experienced management, sound investment portfolio, marked improvement in profitability, and above satisfactory capitalization.

As the sole domestic professional reinsurance firm in the Philippines, NRCP enjoys a solid market franchise. Legislatively, it has the advantage of being entitled to take up at least 10 percent of all outward reinsurance business from domestic insurance companies.

The Government Service Insurance System (GSIS) was NRCP’s largest shareholder with 25.8 percent ownership stake as of end-2024. The Yuchengco Group’s MICO Equities, Inc. (MEI) and Bank of the Philippine Islands (BPI) were the Company’s other major shareholders, with ownership interests of 12.9 percent and 13.7 percent, respectively.

Updates based on its most recent disclosure show NRCP posting a net income of ₱551.3 million in 2024, representing a marginal increase of 2.8 percent, mainly on account of the hike in investment and other income and expenses (net).

As of end-2024, NRCP’s total assets stood at ₱21.0 billion, up by 4.5 percent. With its equity of ₱6.9 billion as of end-2024, NRCP was more than compliant with the minimum regulatory net worth requirement of at least ₱3.0 billion.