IC renews NatRe’s certificate of authority

MANILA, Philippines — The Insurance Commission (IC) has authorized National Reinsurance Corp. of the Philippines (NatRe) to continue its business for another two years or until 2021.

NatRe said the IC, led by Insurance Commissioner Dennis Funa, has renewed the company’s certificate of authority.

“The renewed certificate, valid until 2021, reaffirms the financial stability of the country’s only authorized professional reinsurance company and its ability to continue to serve and pay claims to its client companies,” NatRe said in a statement.

According to NatRe, its net worth has already reached well beyond the P3 billion regulatory minimum requirement for end-2022.

The Philippine Rating Services Corp. (PhilRatings) earlier assigned a financial strength rating of PRS A to the reinsurer.

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.

PhilRatings took into consideration NatRe’s solid market franchise, shareholders of good standing, experienced management, sound investment portfolio and the expectations of continued industry growth in assigning the financial strength rating.

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

NatRe was incorporated on June 7, 1978 as a professional reinsurance corporation, providing life and non-life reinsurance to the Philippines and neighboring insurance markets.