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 at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR), primarily supported by its modest underwriting leverage. The company’s balance sheet strength assessment also reflects its prudent reserving approach, well-diversified investment portfolio and comprehensive retrocession protection covering its domestic and international portfolios. AM Best expects the company’s prospective capital position to benefit from good organic capital generation, supported by a prudent dividend policy.

Nacional’s disciplined underwriting approach and relatively modest exposure to natural catastrophes have led to a track record of strong and stable performance. In 2024, Nacional reported a non-life combined ratio of 99.0% (2023: 100.6%) (as calculated by AM Best), driven primarily by favourable results in the motor and third-party liability line of business, partially offset by significant reserve strengthening due to a natural catastrophe event in Italy in 2023. AM Best expects Nacional’s non-life performance to continue improving going forward, driven by management actions and healthy market conditions.

Nacional maintains a strong competitive position as a leading reinsurer in Spain. Gross written premium increased by 5.8% to EUR 777.6 million in 2024, driven by the company’s stable position in Spain’s insurance market, and its prudent expansion strategy in other European countries, coupled with rate increases. Nacional has expanded its international activities successfully, targeting small- to medium-sized insurers and mutual companies in Europe. In 2024, foreign business accounted for approximately 39% of Nacional’s total premium, compared with 27% in 2014, highlighting the improved geographic diversification of the company’s portfolio.

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