THE National Reinsurance Corp. of the Philippines (Nat Re) announced that it was recently recognized by the Institute of Corporate Directors (ICD) with two awards for its good corporate governance practices, which the ICD says are based on Association of Southeast Asian Nations. (Asean) “corporate governance dashboard” or ACGS.
Nat Re was named one of the top 15 insurers in the country regulated by the Insurance Commission (IC) out of a total of 119 companies regulated by the IC.
In a statement, Nat Re President and CEO Allan R. Santos said he was honored “to be recognized for our adherence to the highest standards of corporate governance in the region.”
Santos added that the firm strives “to achieve our business objectives while remaining compliant with the law, upholding the highest ethical standards and being guided by our business principles.”
Nat Re, the country’s national reinsurer, and other insurance companies were assessed by the DCI on the basis of their performance according to the principles of the Organization for Economic Co-operation and Development (OECD). The principles of the OECD are: the rights of shareholders; fair treatment of shareholders; role of stakeholders; disclosure and transparency; and board accountability.
According to NatRe, the ACGS is a “globally benchmark rating system used to assess the corporate governance performance of companies listed in Asean”.
“Its objective is to improve the standards and practices of corporate governance of listed companies” and insurance companies, he added.
The IC, with its initiative to raise the bar for corporate governance practices in the insurance industry, has mandated the adoption of the ACGS by all insurance companies and fraternal benefit associations.
For publicly traded companies such as Nat Re, the ACGS serves as a useful diagnostic tool to guide improvement in corporate governance standards, the insurer said. For Nat Re’s foreign investors, the scorecard methodology, adopted by companies in six ASEAN member countries, provides comparable information to be part of their investment decision-making process, explained. Nat Re.
Nat Re said his corporate governance practices have also been recognized in the region.