NATIONAL Reinsurance Corp. of the Philippines (PhilNaRe) is in search of a strategic investor that can bring in additional capital and expertise in the country’s only reinsurance firm.

At the sidelines of the company’s stockholders’ meeting, chairman Winston Garcia said they are selling 20-percent to 30-percent stake of the company.

“[The stake sale] will involve around 800 million shares to be taken from our unissued stocks,” he said. PhilNaRe has outstanding shares of 2.2 billion.

Garcia said the company will sell the shares at a premium, or at least more than the book value of P2.80. PhilNaRe has commissioned investment bank Rothschild as financial advisor for the planned sale.

“Our future partner will serve us in good stead as we venture further into the Asian reinsurance markets,” he said.

Proceeds from the sale of the stake will be used to augment the company’s capital allowing them to expand its coverage.

Early this month, PhilNaRe signed a memorandum of understanding (MOU) with Singapore-based ACR Capital Holdings Pte. Ltd. for the exchange of technical expertise in expanding its business, as well as to discuss possible investment in the local reinsurer.

PhilNaRe said ACR will help it build its book of Asian business and provide expertise in commercial risks in underwriting.

“PhilNaRe entered into a MOU with ACR Capital Holdings Pte. Ltd. for a potential long-term strategic partnership to build PhilNaRe’s book of Asian business, as well as a domestic catastrophe pool in the country and provide technical expertise to PhilNaRe in the area of large commercial-risks underwriting on a facultative basis,” it said.

Meanwhile, the company’s board approved a P300-million share buyback program subject to availability of free surplus/unrestricted retained earnings.

PhilNaRe’s offering last year has been closely watched as it is the sole reinsurer in the country and has ambitions of expanding its business in Asia.

Under Presidential Decree 1270, it has the mandate to retain 10 percent of the local insurance industry’s business.

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