AM Best Affirms Credit Ratings of Nacional de Reaseguros, S.A.

AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Nacional de Reaseguros, S.A. (Nacional) (Spain). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Nacional’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Nacional’s risk-adjusted capitalisation remains at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), primarily supported by modest underwriting leverage. The company’s balance sheet strength assessment also reflects its prudent reserving approach and limited catastrophe exposure, as most natural perils in Spain are covered by the Consorcio de Compensación de Seguros, the compulsory government natural catastrophe scheme covering physical damage. AM Best expects the company’s prospective capital position to benefit from good organic capital generation, underpinned by a prudent dividend policy.

Nacional’s disciplined underwriting approach and limited exposure to natural catastrophes have contributed to consistently strong technical results, demonstrated by a five-year (2016-2020) weighted average combined ratio of 94.1%. In 2020, the company’s loss ratio deteriorated to 66.8% (2019: 63.2%), driven by COVID-19-related losses in its non-domestic portfolio combined with losses from storm Gloria in Spain. Nonetheless, the company’s net result remained positive at EUR 28.9 million.

Nacional maintains a strong competitive position as a leading reinsurer in Spain. Gross written premium increased by 3.0% to EUR 608.5 million in 2020, driven by the company’s stable position in the growing Spanish market, and its prudent expansion strategy in other European countries. Nacional has expanded its international activities successfully in recent years, targeting small-to-medium sized insurers and mutual companies in Europe. In 2020, foreign business accounted for 34% of Nacional’s total premium, compared with 27% in 2014, highlighting the improved geographical diversification of the company’s portfolio in recent years. Nonetheless, uncertainties exist regarding the long-term profitability of business originated outside of Spain, owing to higher levels of competition from global reinsurers. AM Best believes that Nacional’s expansion outside of its domestic market represents a source of potential volatility to the company’s performance on a gross basis due to the exposure of this business to catastrophe losses. However, Nacional has demonstrated its ability to manage its catastrophe exposures through a comprehensive retrocession programme, and more recently, the acquisition and development of specialised risk management tools.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Mathilde Jakobsen
Director, Analytics
+31 20 308 5427

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Giannina Carbajal Ortiz
Financial Analyst
+31 20 308 5428

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644

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