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In a new commentary, AM Best anticipates that the financial impact of the January 1, 2024 earthquake in Japan on major domestic non-life insurers will be manageable in relation to the sector’s net profit.

This perspective was detailed in the commentary titled, “AM Best Expects Insured Losses from Japan’s January 2024 Earthquake to have Limited Credit Ratings Impact.” The report notes that a significant portion of residential earthquake risks in Japan are supported by a state-backed reinsurance scheme. Consequently, most losses incurred by domestic non-life insurers are likely to arise from commercial and industrial risks.

The firm added that Japanese insurers typically employ conservative reinsurance strategies. This approach, along with the relatively low earthquake reinsurance attachment point in comparison to their capital positions, has effectively transferred a substantial portion of earthquake risks to the international reinsurance market.

“While the earthquake losses would drag the proportional treaties results, if losses were to hit individual companies’ earthquake reinsurance excess-of-loss layers, it might fuel rate increases in the upcoming April 1 reinsurance renewal,” AM Best director of analytics Chanyoung Lee said.

The non-life insurance sector in Japan faced substantial catastrophe losses from Typhoons Nanmadol and Talas in 2022. However, the year 2023 was comparatively benign in terms of natural catastrophes for the industry.

AM Best expects that the adverse impact on profitability within the fire insurance segment, which is anticipated to bear the brunt of the earthquake losses, will likely be mitigated by profits from other lines of business. The report also highlights that most non-life insurance lines have seen growth in premium income over the past 12 months, buoyed by primary rate increases.

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The insurance trade press headlines generated in the first week of 2024 offer a snapshot of some of the key themes expected to dictate discussions this year. Many of these are holdovers from 2023, innately familiar though offering the promise of fresh opportunities and challenges in the context of the clean slate provided by a New Year.

M&A activity is a staple of insurance themes, alongside questions about talent recruitment and retention, the impact of regulation and, more recently, the rapid advancement of digitisation technologies.

Each of these has already had airtime this week, including multiple senior executive level appointments with Stonybrook Capital welcoming a new group MD and international CEO in Darren Bailey and Staysure Group naming Finn Walsh as its new group CEO.

Regulation remains a key area for consideration

All eyes remain fixed on the regulatory landscape too, particularly in anticipation of the launch of the 2024 BIBA Manifesto in parliament next week. And it didn’t take long for the sector to set out its stall on the question of regulation. The second day of the year saw the UK insurance industry call on the government to implement lighter regulations for captive insurance companies. This is in advance of a planned government consultation on the prospective design of a new framework to encourage the growth of captive insurance companies in the UK.

Data and technology – what’s happening in 2024?

Technology and data remain pressing topics on the agenda of insurance businesses in 2024 with Send CEO Andy Moss highlighting how over the last 20 years, insurance has evolved from being one of the last paper-based industries to truly embrace digitisation. Large scale change seems to be well within the risk appetite of the market if the speedy embracement of generative AI in the latter half of 2023 is anything to go by.

There can be little question that the inclination for operational efficiency is being matched by the development of new technologies able to reform and transform the internal productivity of even the most intricate business models. With these opportunities, there naturally come challenges and 2024 is likely to bring a more fulsome picture of the broader risk represented by these technologies as increased utilisation brings further questions around ethical considerations, overdependence concerns and worries about its implications for cybersecurity.  

Cybersecurity concerns represent a clear and present danger to government, industry and individuals alike. But it also offers an opportunity for the insurance industry to step up and present itself as part of the solution to the cybersecurity risk puzzle that is becoming more complex with each passing day.

The industry needs not just to throw its weight behind those developing new cybersecurity products and services but become more actively invested in their development, rollout and ultimate success. In that respect, 2024 got off to a very positive start with the news that Beazley has finalised its $140 million cyber catastrophe bond.

The roadmap to insurance innovation is well read and signposted but the road itself needs to be better travelled if we’re to make good the wishes we’ve given and received for us to have a happy and successful 2024.

It was an “entrepreneurial itch” that led CEO Andy Moss (pictured) and his two co-founders – Ben Huckel and Matt McGrillis – to strike out on their own and set up Send in 2019. That initial spark has since fanned into a flame that has seen the insurtech go from strength to strength, underpinned by a fast-growing team and favourable market conditions that are seeing clients embrace innovation in underwriting.

Building a technology company to serve the pre-bind insurance space has been an incredible journey to date, he said, and one which has required every ounce of software and technology expertise he and his co-founders obtained through their 20-plus years of serving the London market. Supporting and enabling the underwriting side of the insurance lifecycle brings great variety, he said, and it’s a spark unlikely to fade given the fast pace of evolution being seen across the insurance ecosystem.

“You’ll hear it a lot from companies that have grown like us, but we’ve been very lucky along the way to have some great people throw their weight behind us,” he said. “Our customer base wanted to see something different in the market and wanted to encourage some plucky, smaller company to do that something different. The state of the market as set by the larger incumbent software vendors has been a real catalyst for our success.”

Understanding the evolution of technology in underwriting

Assessing how the role of technology in underwriting has changed, Moss noted that he came to insurance from a role as a software developer at the BBC. When his eldest child was born, he said, he looked for a job locally – and so joined the ranks of his peers by falling into insurance and never looking to fall out of it. Over the next two decades, he dipped in and out of the underwriting side but when he came to co-found Send, he realised how much data and information had evolved.

“Over 20 years, insurance has evolved from being one of the last paper-based industries to really embrace digitisation,” he said. “And through that journey, the amount of information has stayed the same but the amount of data used in underwriting just increases year-on-year. The availability of data sources accessible to make a decision about a risk today, compared to 10 or 20 years ago, is incredible.

“There’s data for every variable you might want to cover these days. The volume of data has gone up massively which presents a real opportunity. But I think most insurers are lagging behind when it comes to leveraging that data because they’re still working on spreadsheets and email, and they haven’t yet got the right technology in place to really support their underwriting.”

How increased digitisation is impacting the future of insurance talent

An overloked consideration when evaluating the rise of digitisation and its impact on the market is the impact this is having on the ability of insurance businesses to attract and retain the right talent to future-proof their organisations and the wider industry. If you look at the types of roles being advertised by insurers these days, he said, you’ll say there’s a lot more breadth in terms of the skills companies are looking for, and the roles they’re hiring for.

“There’s a lot more roles around data science and integration and APIs and connecting systems together, which is all part of the journey,” he said. “So, there’s a lot more data and technology roles. And certainly, when we talk to some of our customers about how they look at attracting underwriting talent, they want underwriters who are tech-savvy and who want to use technology. Our customers recognise that good data at the underwriting stage leads to better outcomes in terms of portfolio performance and they want the people who are buying into that link. They want people who see data as an advantage and not as a burden.”

Taking a tech-first approach to building a talent pipeline

For Send itself, Moss said, it’s clear that its tech-first approach is a key differentiator when it comes to the firm being able to attract top talent. Making the insurtech an employer of choice is a key area of focus for the team, as demonstrated by its appointment of Pat Caldwell as chief people officer after its most recent funding round.

Having the right culture, performance focus, remuneration packages and a healthy emphasis on diversity and inclusion are all critical to this, he said, because this is what talented individuals want from their place of work. This is especially relevant if you’re trying to attract new blood into an industry like insurance because it might not be what they were expecting from the insurance industry. Send is looking to really set itself apart from software incumbents by offering a new face to the insurance proposition.

“We’re trying to bring the startup feel that we have among our people to a wider audience,” he said. “And it currently isn’t all that prevalent in the insurance market. If you go into the fintech space or property-tech etc. there’s lots of industries that are chock full of startups and probably have a lot more maturity in terms of using technology. But it’s all part of that journey and we’re well on our way.”

An insatiable appetite for innovation, endless energy and a commitment to creating an internal team that reflects the rich diversity of the market they serve. These are the main ingredients in the recipe for developing a successful affinity insurance proposition, according to Phil Hobson (pictured), international affinity leader at Marsh and a long-standing advocate for the role of affinity products in augmenting customers’ experience of insurance.

When Hobson stepped into his current role in January 2021 – which meant moving his family from Hong Kong to the UK in the thick of the COVID crisis – his first port of call was to establish the broking giant’s affinity strategy which is focused on two core pillars. The first is the ambition to do a few things very well by taking a “narrow and deep” approach to building out the business.

“Narrow is our focus on our four core sectors of the business – automotive, equipment and consumer electronics, sharing economy and traditional sponsored programmes – and deep is the drivers that make us successful,” he said. “For us, those drivers are our talent, our technology, and our sales and marketing and placement.

“The second pillar of how we restructured our business was by looking at the very human capital heavy elements of our proposition and asking what we could do to digitise and how we could deliver our offering differently. So, that was my focus. I assumed the international role in 2021 which now includes 65 countries, seven regions and about 1,300 people across a very flat structure where everybody in the business is encouraged to be part of our affinity journey.”

What’s happening in the affinity insurance sector?

Assessing the lay of the affinity insurance landscape as it stands today, Hobson emphasised that “consolidation” is the word on the lips of many across the market. However, he noted that when discussing affinity, it’s important to be aligned on what that actually entails. Often, when people talk about becoming an affinity broker or carrier, they’re pursuing a one-to-one sales model. Real consolidation is where a client is tapping into a wider ecosystem to help acquire and retain its end customers.

How embedded insurance has evolved

Embedded insurance is lending itself naturally to these conversations, he said, and the discussion around embedded cover is changing as there’s increasing consideration about how it can be delivered as part of an ecosystem solution. Take, for example, an automotive manufacturer that supports a subscription base, who would have thought that people now automatically accept that this subscription includes insurance?

“There are so many examples of innovation across the consolidation model that I’m seeing in affinity business,” he said. “We’re looking at moving away from one-to-one acquisition and far more towards that embedded ecosystem solution. One-to-one acquisition still has its place because there are still products that require and support that model, with professional liability being one example.”

The consolidation currently happening in the market is taking place through carriers who can be truly global, he said, of which there aren’t all that many in the market. Clients are looking for a consistent customer experience across their embedded ecosystem and most carriers tend to be strong in one region, so it’s hard for them to deliver that consistency on a global basis. Meanwhile, many brokers are facing the same struggle.

Increasing engagement with service providers and partners

“The other thing I’m seeing, for us, is a lot more engagement in our ecosystem with service providers and partners,” he said. “That’s specialist technology providers, specialist education services, risk management services – and partnerships within our own organisation that allow us to tap into the wonderful insights and capabilities delivered by Oliver Wyman and Guy Carpenter.

“Another theme I’m seeing come through is the requirements of our core client – the affinity aggregator. They’re looking for far more than just remuneration, they’re looking for client retention and data insights. They’re looking for data. Data accessibility has been a challenge for them not just due to regulatory considerations but also just the way it has been collected in the past which has led to significant challenges around quality.”

Finally, he said, there’s a marked increase across the market for innovation. It’s easy to fall into the default position of conflating innovation with technology but, in reality, technology is just one piece of the innovation puzzle and serves as an enabler rather than the end goal.

“But that presents a wonderful challenge going forward and the opportunity for a lot of innovation,” he said. “For example, we’ve got products labs, we’ve started to invest in automotive engineers, data scientists and in more people with digital customer experience. And the way we’ve started to leverage that talent piece is by finding people from industry as opposed to finding people from the insurance industry.

“I’ve employed a lot of consultants and project managers and customer service people and people from sharing economy platforms and from the automotive sector. Because these are the people who can challenge the ‘norms’ in insurance and bring our product suite and capabilities far nearer to our clients’ ecosystems.”

What’s top of the agenda for Hobson and his team?

Looking across the full remit of the Marsh McLennan offering, Hobson said he feels “really blessed” to be part of an organisation with such incredibly diverse and endlessly accessible capabilities. It’s this which allows his team to really deliver innovation, he said, because there are always examples from other businesses to lean on and learn from – and to leverage for the benefit of clients.

With the year stretching ahead, he noted that there are several pressing items at the top of his agenda for 2024. First is firmly establishing what the team want the future of embedded insurance to be within Marsh, he said, because it represents such a huge opportunity – and that delineation will be critical going forward.

Secondly, is ensuring that the affinity team continues to really deliver on the data insights piece so critical to their clients. That’s especially important, he said, because the more and better quality data they get, the more it supports their insurance buying decisions and their risk management decisions – which is an element that should be considered by the industry more broadly.

“And finally, the third focus for me is always the same,” he said. “It’s about getting my brilliant team to the end of the year and making sure they have some fun and celebrate the great work they’re doing along the way.”

Malago Insurance Brokers (Malago), an insurance brokerage based in Bristol, has announced the acquisition of Mulberry Insurance Brokers (Mullberry), following the retirement of Keith Johnson, its principal.

“After more than 40 years, the bitter-sweet moment has arrived when I have decided to retire. It was not an easy decision as I have enjoyed my role so much,” said Johnson regarding his retirement.

“Building up relationships with my clients was crucial to me, and I was conscious to leave them in safe hands. With a similar client base and values, Mathew [Rowles, managing director at Malago] is just that,” he added.

“Having known Keith for many years, I am really pleased to add his customers to our growing portfolio. We will offer continuity to his client base: something that I know was very important to Keith when he was contemplating retirement,” said Rowles.

“Our values at Malago, and indeed our existing client base, bear strong similarities to Mulberry’s, so I am confident that we will be able to offer a seamless transition.”

In order to ensure a smooth transition, Johnson will join Malago to make sure that the needs of clients are being met..

“We will continue to offer service to Keith’s clients in the same way that they appreciated it from him: with an emphasis on the personal touch and getting to know each business and their owners,” said Rowles.

“Current clients of Mulberry Insurance Brokers can be assured that any current insurances will continue to run until renewal, at which point we will be in touch under the Malago brand,” he added.

Malago is an independent insurance brokerage specialising in commercial insurance. Its compliance firm is Momentum Broker Solutions, which is the same as Mulberry’s.

Not content with the Herculean task that was building out a pure-play reinsurer in the thick of the COVID-19 crisis, the leadership team at Conduit Re founded the Conduit Foundation to run alongside the business as a privately funded Bermuda charity.

Among its London-listed peers, Conduit Re is unusual in that all its business operations are based in Bermuda, noted Stuart Quinlan (pictured) COO and deputy CEO of Conduit Re, and the leadership team have been very focused on the importance of establishing itself in the local Bermuda community, both within the industry and more widely.

How the Conduit Re Foundation came to life

The Conduit Foundation is part of that story, he said, and looking back on how the foundation came to life, he emphasised its mission statement – to support the Bermuda community through engagement in projects focused on the environment, diversity & inclusion initiatives, education and support for the vulnerable. Now three years into his Conduit Re journey and three years into enjoying a new pace of life in Bermuda after decades serving the London insurance market, Quinlan has first-hand experience of what it means to really get involved with the Bermuda community.

“There are only around 60,000 people across the 24-mile-long island of Bermuda, and you’re never more than a mile from seeing the sea,” he said. “You’re really never more than five minutes from seeing someone that you know, particularly as you get more established and it’s a phenomenally friendly place… And I see Bermuda as an almost microcosm of almost anywhere else in the world, but with everything closer together and a small population meaning fewer degrees of separation than elsewhere.

Assessing the wealth divide in Bermuda

In Bermuda, you’ve got examples of tremendous wealth, he said, with a sizable affluent segment of local society engaged in local and international business, while others live in real poverty, exacerbated by high housing costs and the implications of a high dependence on imports.

“For Trevor [Carvey, CEO] and for Neil [Eckert, executive chairman], they were driven about setting up a foundation if we were creating a business here,” he said. “We raised a significant amount of funds to create the organisation, and a significant portion of the initial seed fund of the foundation was donated by the banks who helped us create Conduit. So, the first year was really about establishing the protector committee and setting up all the necessary legal structures for the foundation.

“It was into 2022 that we got more active, but we determined very early on that we wanted our focus to be on Bermuda. And we have some simple goals – supporting the vulnerable, the advancement of education and supporting the health of the Bermuda community.”

In 2022, the inaugural year of donations, the Conduit Foundation donated to 14 local charities – among them the cancer care charity P.A.L.S, Meals on Wheels Bermuda, the Friends of Christchurch and the Bermuda Red Cross. These charities shared in donations of $280,000 but Quinlan noted that the support offered by the Conduit Re team goes far beyond financial considerations.

Supporting communities – why it’s about more than just money

“In some ways, it’s easy to just give out cheques to charities, but for us, it’s about the doing as well,” he said. “We’re looking to foster long-term partnerships with our chosen causes, which includes volunteering from our staff, as well as knowledge and skills sharing. Looking at Meals on Wheels, for example, we’ve taken ownership of delivery route 16 on a Friday and on our intranet, we have a relay system of volunteers who go out to learn and teach the route allowing more and more of our people to get involved.

“The impact of the financial contributions from the foundation is amplified by our staff directly engaging in volunteering with the charities. In 2022 alone, over 2,000 volunteer hours were tracked by Conduit staff. And over 70% of our employees have local roots and are embedded in various community initiatives and activities. Additionally, financial support was given to a number of other local charity groups through specific fundraising event sponsorship and through donations under the staff donation matching program.”

Quinlan highlighted that the foundation seeks to align its contributions both to its objectives and the UN Sustainable Development Goals. During 2022, he said, the organisation supported 15 of the 17 UN categories through the support given to Bermuda charities during the funding review and approval process.

Conduit Re’s ‘Gala of Giving’

While Conduit Re is not unique in supporting local causes, Quinlan noted that he was keen to cast the net more widely and had the idea of a community ‘Gala of Giving’, drawing on his experience of organising similar events in the UK.

The leadership team at Conduit Re endorsed Quinlan’s ambition and the full force of the Foundation’s power was applied raising additional funds for the 14 local Bermuda charities chosen by the Foundation in 2022 to support. Looking back on the event, which was a mammoth undertaking, bringing together people from all over the island and beyond – and linking them up with representatives from the charities being supported, he emphasised the impact having that personal example of where this funding goes made on everybody present.

“It was a great experience to coordinate the organisation of the event, with the active participation of the Bermuda business community” he said, which, thanks to ticket sales and donated auction items, raised in excess of $310,000 which will be split equally to the beneficiary charities of the 2023 event. More than 30 Bermuda businesses contributed to the auction and 340 guests were welcomed on the evening which shows the integral link between business and community – which is so celebrated by Conduit Re. 

Understanding the link between insurance and the communities it serves

“I 100% believe it’s important to support the community you serve and the community you live in,” he said. “I feel very privileged to be living here now. Especially having had 30 years of commuting on trains and tubes! To come in and help build and create a business from scratch, to get involved in the community and have the chance to really impact it, and make a difference, it’s such a special experience.

“I also believe that being able to talk about the Conduit Foundation’s impact on the community, perhaps also encourages people to think about our industry as being a good industry to come into. One amazing thing about Bermuda for me, is that nowhere else in the world do you really have children growing up thinking they want to join the insurance and reinsurance industry. We’re so relevant as an industry here, and where we can give back some of our time and money, then we should do that with open arms.”

Utah-based SILAC Insurance Company (SILAC) has had its outlook adjusted from stable to negative by AM Best.

The shift to a negative outlook is primarily due to a decline in the quality of SILAC’s reinsurance counterparties and a decrease in risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR). This is attributed to increased reinsurance leverage following several agreements with unrated reinsurers and a strategy of maintaining high reinsurance leverage to manage capital strain.

Despite this change, AM Best has affirmed SILAC’s Financial Strength Rating at B+ (Good) and its Long-Term Issuer Credit Rating at “bbb-” (Good). The ratings reflect SILAC’s adequate balance sheet strength and operating performance, along with its neutral business profile and marginal enterprise risk management (ERM).

Although SILAC’s capital and surplus have grown over the past year, bolstered by retained earnings and investor capital contributions, its risk-adjusted capitalization remains weak. AM Best has also expressed concerns regarding SILAC’s limited financial flexibility for potential capital requirements to support new growth or offset investment impairments or recapture of ceded business.

SILAC has maintained a favorable operating performance, reporting net income of $41 million as of the third quarter of 2023. The company’s earnings are largely derived from investment spreads on its fixed-indexed annuity (FIA) products.

SILAC’s strategy of reducing sales to manage capital levels has also not significantly impacted its strong earnings. The company’s business profile is supported by its position in annuity sales and geographic diversification, offering a range of FIA and multiyear guaranteed annuity products.

The assessment of SILAC’s ERM is influenced by the deteriorating quality of its reinsurance relationships and a heavy dependence on reinsurance to manage capital strain. While SILAC has identified key risk categories and established risk appetite and tolerance levels for each, its reliance on reinsurance remains a concern. AM Best will continue to monitor SILAC’s efforts to develop and enhance its ERM program.

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White Mountains subsidiary Ark Insurance Holdings Limited, specializing in property and casualty reinsurance and insurance, has renewed its agreement with reinsurance sidecar Outrigger Re for the 2024 calendar year. The terms of the renewal are reportedly similar to those of the previous year.

Outrigger will continue its partnership with Ark through a quota share arrangement. This agreement is set to provide collateralized reinsurance protection for a segment of Ark Bermuda’s global property catastrophe portfolio, starting January 1, 2024.

For the renewal, Outrigger secured $250 million in total investor capital as of January 1, including a $130 million contribution from White Mountains. The remaining funding was sourced from both new and existing third-party investors.

“We are pleased to continue supporting Outrigger Re and the underwriting team at Ark. We view new investor interest as recognition of Ark’s strong execution in the on-going hard market,” White Mountains CEO Manning Rountree said.

“Outrigger remains an important strategic capability for Ark in the current market. We are pleased to see expanded investor interest in supporting Outrigger including White Mountains’s ongoing lead commitment,” Ark CEO Ian Beaton said.

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AM Best has reaffirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating (Long-Term ICR) of “a-” (Excellent) for Harrington Re Ltd. (Harrington). In addition, the long-term ICR of “bbb-” (Good) for Harrington Reinsurance Holdings Limited was also affirmed.

Both companies, headquartered in Bermuda, have been given a stable outlook for these ratings.

The ratings are based on Harrington’s robust balance sheet strength, which AM Best categorizes as very strong. Other factors contributing to the ratings include Harrington’s adequate operating performance, its neutral business profile, and effective enterprise risk management strategies.

Potential factors for a negative rating action include significant adverse reserve development affecting Harrington’s capitalization, substantial negative fluctuations in investment performance, or a material decline in its risk-adjusted capitalization. While not anticipated in the near future, positive rating action could result from a consistent trend of favorable reserve development.

Founded in 2016, Harrington is backed by AXIS Capital Holdings Limited (AXIS) and The Blackstone Group Inc. The company’s risk-adjusted capitalization, evaluated using Best’s Capital Adequacy Ratio (BCAR), aligns with the highest level of assessment. AM Best anticipates that Harrington’s BCAR scores will continue to support a very strong assessment of its overall balance sheet strength in the future.

Harrington employs an alternative asset strategy that has positively impacted its net income historically. The company is also developing a diversified, multiline reinsurance portfolio, with a focus on medium to longer-tailed casualty lines.

Business for Harrington is primarily sourced through cessions from AXIS, as it does not directly engage the market. The company benefits from a well-established risk management function and draws on the expertise and systems of its sponsors.

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Philippine Rating Services Corporation (PhilRatings) has assigned the National Reinsurance Corporation of the Philippines (Nat Re), the nation’s sole professional reinsurer, a financial strength rating of PRS A with a stable outlook, signifying that Nat Re possesses strong financial security characteristics, though it may be more susceptible to adverse business conditions than insurers with higher ratings.

Nat Re’s stable outlook indicates the likelihood of this rating remaining consistent over the next 12 months. This rating and outlook reflect several factors, including Nat Re’s established market presence, reputable shareholders, experienced management team, sound investment portfolio, and robust capitalization.

As of the end of 2022, Nat Re’s total investment assets were valued at PHP9.2 billion, increasing to PHP9.7 billion by the end of June 2023. The company’s investment portfolio is predominantly low-risk, with 92.4% allocated to fixed income investments and 7.6% to equities as of end-June 2023. Government securities form most of the fixed income portfolio, followed by corporate bonds. For equity investments, companies listed on the Philippine Stock Exchange (PSE) comprise 94%.

With an equity of PHP5.8 billion as of end-September 2023, Nat Re comfortably exceeds the minimum net worth requirement of P3.0 billion set by the Insurance Commission (IC). The company’s risk-based capital (RBC) ratio also significantly surpasses the IC’s minimum requirement of 100%. Nat Re anticipates maintaining compliance with regulatory capitalization standards in the future.

Nat Re is unique in the Philippine insurance market as it is the only domestic professional reinsurance firm. Legislatively, it has the advantage of being entitled to a minimum of 10% of all outward reinsurance business from domestic insurance companies.

This privilege also provides Nat Re with significant access to local reinsurance business and insight into the reinsurance needs of domestic insurers.

The state-owned Government Service Insurance System (GSIS) is the largest shareholder in Nat Re, holding a 25.8% stake. The Yuchengco Group’s Mico Equities, Inc. (MEI) and the Bank of the Philippine Islands (BPI) are other major shareholders, with ownership interests of 12.9% and 13.7%, respectively.

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