A.M. Best Company gives PhilNaRe favorable rating
November 5, 2007
National Reinsurance Corporation of the Philippines (NRCP/PhilNaRe) received a financial strength rating of B++ (Good) and an Issuer Credit Rating of bbb (Stable, Investment Grade) from A.M. Best (Asia-Pacific) Company. The rating agency’s move is expected to enhance to enhance NRCP’s plans to expand regionally.
PhilNaRe’s substantial net worth of P6.5 billion and three decades of experience as the nation’s primary reinsurer will enable the company to compete in the multibillion-dollar Asian reinsurance market.
According to PhilNaRe Chief Financial Officer John E. Huang, capitalization alone is not all that is needed. “To become a significant player, PhilNaRe had to obtain an international rating from a reputable agency such as A.M. Best because a Best’s Rating reinforces confidence in the organization’s stability, as well as its attractiveness to investors.”
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. A.M. Best is committed to maintaining Best’s Ratings as the definitive source for information on the financial condition and operating performance of insurance companies worldwide.
PhilNaRe received the favorable rating because of its completion of a comprehensive audit using Best’s Rating Methodologies on topics and issues like Insurance Groups, Issuer Credit and Debt Ratings and BCAR (Best’s Capital Adequacy Ratio). The results were weighed against industry benchmarks.
Wilfrido C. Bantayan, PhilNaRe President & CEO, recounts their IPO experience and how it contributed to the company’s rating success. “After the completion of the IPO in April 2007, PhilNaRe focused on streamlining operations especially in the areas of human resource management, information technology systems, marketing strategies, just to name a few. All these efforts were executed without compromising our service quality to our clients. Because of this, I believe we are justified in receiving a favorable international rating from the independent agency.”
PhilNaRe is the only Filipino reinsurance company in the local market today and carries the status of a national reinsurer.