Siena:AM Best has affirmed the financial strength rating of B++ (Good), the long-term issuer credit rating of 'bbb' (Good), and the Philippines National Scale Rating of aa+.PH (Superior) for the National Reinsurance Corporation of the Philippines (Nat Re). The outlook for these ratings is stable.

According to BERNAMA News Agency, The stability of these credit ratings is attributed to Nat Re's strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. Nat Re's balance sheet strength is supported by its risk-adjusted capitalisation, measured by Best's Capital Adequacy Ratio, which was at its strongest level at the end of 2025, along with good financial flexibility.

AM Best considers Nat Re's investment portfolio to have moderate risk, with a significant portion of assets allocated to fixed-income securities issued by the Philippines government. The balance sheet, however, remains sensitive to significant natural catastrophe events, though this risk is partially mitigated by a retrocession programme.

The company's operating performance is assessed as adequate, with a five-year average return on equity of 6.8% from 2021 to 2025. In 2025, underwriting performance improved due to favorable claims development in its non-life portfolio and strong margins from a growing life business. Investment income, primarily from interest and dividends, also positively impacted operating earnings.

Nat Re's business profile is viewed as neutral, being the sole domestic reinsurer in the Philippines. The company benefits from strong relationships with local cedants and access to business through mandatory local cessions. It is well-positioned to leverage opportunities from local government initiatives and new service offerings, such as participating in the design and launch of underwriting facilities in the Philippine market, which allows it to exceed business volumes stipulated by mandatory local cessions.