AM Best has assigned a Financial Strength Rating of B+ (Good), a Long-Term Issuer Credit Rating of “bbb-” (Good) and a Philippines National Scale Rating of aa.PH (Superior) to MAAGAP Insurance Inc. (MAAGAP) (Philippines). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect MAAGAP’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

MAAGAP’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. The company’s robust capital adequacy benefits in part from healthy earnings retention over recent years. In addition, MAAGAP has a low-to-moderate risk investment portfolio with the majority of investments allocated to Philippine government bonds and well-rated domestic corporate bonds. A partially offsetting balance sheet strength factor is MAAGAP’s elevated reinsurance reliance to support the underwriting of catastrophe-exposed business; however, this risk is partially mitigated by the fact that the majority of reinsurance recoverables are from counterparties of sound credit quality.

AM Best assesses MAAGAP’s operating performance as adequate, with a five-year average return-on-equity of 8.8% (fiscal-years 2021-2025). The company’s underwriting performance showed some volatility over the last five years, partly due to losses arising from natural catastrophes and large loss events. However, ongoing remedial measures have supported an improvement in underwriting results in fiscal year 2025. The elevated expense ratio recorded in recent periods is viewed as an offsetting factor. Prospectively, this is expected to improve as the company grows its book of business and benefits from greater economies of scale. Additionally, investment returns, derived mainly from interest income, are viewed to be stable and supportive of overall earnings.

AM Best views MAAGAP’s business profile as limited. The company is a non-life insurer domiciled in the Philippines, with a market share of approximately 2%, based on 2025 gross premiums written. Major lines of business include motor and property, which are subject to elevated market competition. Products are mainly distributed through agency and broker networks.

AM Best considers MAAGAP’s ERM to be developed and appropriate for the company’s risk profile and operational scope.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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