Pira Fact Book 2016 by Junep Ocampo

PIRA

PHILIPPINE INSURERS AND REINSURERS ASSOCIATION

FACT BOOK

2016 Important Facts and Figures about the Philippines and its NonLife Insurance Industry

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This PIRA Fact Book is published annually by the Philippine Insurers and Reinsurers Association (PIRA) with offices on the 6th floor, Algo Center, LP Leviste Street, Salcedo Village, Makati City, Philippines. The editors of this book have taken care and precautions in producing this book. Any errors in facts or attribution are not intentional. Editors: Rogelio J. Concepcion and Agnes Silaya Writer and Designer: Junep Ocampo Design Assistants: Danilo Hernando and Noel Uaje Produced by RightMedia Public Relations for the Philippine Insurers and Reinsurers Association (PIRA). No part of this book can be reproduced without the written permission from PIRA. Copyright ÂŠ 2016 All rights reserved.

PIRA

Atty. Perry Pe, President, Management Association of the Philippines

Philippine Insurers and Reinsurers Association

FACT BOOK 2016 Important Facts and Figures about the NonLife Insurance Industry

CONTENTS Country Overview 8 12 14 18 22 26 30 34

Chairman's Note Men and Women of PIRA Breaking of a New Dawn Threat of Disasters Home of Asia's Happiest Workforce Financial Illiteracy of Filipinos Duterte's War on Drugs All Roads Lead to Mindanao

Industry Overview 38 42 46 48 52

Getting Smaller, Growing Bigger Taking the Lead in Microinsurance Controversial Scheme Stopped Gov't Joins Insurers in Fight vs. Fraud Surviving Together

Industry Issues 58 62 66 70 74

Nat CAT Pool in Limbo Focusing on Game Changers UN, PIRA Work on Climate Change In Search of Fresh Talents Networking on the Fairway

Appendix

Our Vision PIRA is the institutional leader of a strong, unified and influential nonlife insurance industry in the Philippines that ensures the industry's longterm growth and sustainability.

Our Mission 1. To promote the general welfare and common interests of nonlife insurance, surety, and professional reinsurance companies doing business in the Philippines through ways and means consistent with the law 2. To propagate and spread the concepts, principles and benefits of the nonlife insurance and surety business, and to this end, conduct educational campaigns, training seminars, workshops, conferences and lectures. 3. To serve as a forum for the exchange of information on matters involving or affecting the nonlife insurance, surety and reinsurance industries, both local and international. 4. To foster unity, goodwill and cooperation among its members in order that collective actions or pursuits in all matters of common interest to them may be facilitated.

With the present leadership's strong antipoverty agenda, we expect more action on climate adaptation, particularly disaster risk finance and insurance.

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CHAIRMAN'S NOTE

The change we'd like to see By Augusto Hidalgo Chairman, Philippine Insurers and Reinsurers Association

"Change is coming," was the battle cry of Mayor Rodrigo Duterte when he ran for the highest post in government. Now that he is in his third month in office, we take a view on his new administration. It's too early to judge the Duterte administration. We know the extent of the problems inherited from the past administration. It would need a considerable amount of time to be able to solve them.

offices are getting shorter, and crime appears to have reduced. We cannot help but be concerned, though, over certain policies on the war on drugs, human rights, and peace and order strategies.

Having said that, we cannot ignore the positive energy that some feel whenever they go to government agencies nowadays. It seems people are more aware that government care and are willing to act. This could be the reason for the surge in the President's popularity. This is a good opportunity to be daring and make dramatic changes in our government and in our society.

We are happy so far with the appointments and retentions in the Finance Department, the Insurance Commission, and the Bureau of Treasury. We are now with the Land Transportation Office addressing problems related to insurance and road safety. We look forward to the President's solutions on traffic and to his promise to make doing business in the Philippines better, faster and easier.

As US President Barack Obama says, we have a very "colorful" President now. His way of running the show is non-traditional. Yet we need to always look at the bottom line -- is he delivering what he promised? Is the work getting done? So far, so good really. Since he assumed office, airport services have improved, lines in government

We completely support his pro-poor policy statements, his promise to put Filipino interests first in our foreign relations, his moves to resume peace talks and grant amnesty to political prisoners, his decision to prioritize health and education, his plans for more development outside of Manila, and his call for government officials to practice simple living.

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NOT YOUR USUAL LEADER From the onset of the campaign season, Rodrigo Duterte offered himself as a different kind of leader. Now that he has won the presidency, can he deliver the people's expectations?

We have a wish list for the new leadership: 1. LOWER TAXES Taxes on insurance in this country are over 27 percent, making insurance unaffordable for most Filipinos. If the government lowers taxes, then more Filipinos will be covered when disaster strikes. 2. EQUAL TREATMENT We wish that government would reduce regulations favoring foreign companies over Philippine companies. The Aquino administration's multinational corporationfriendly legislation increased minimum net worth requirements to levels exceeding even Japan, US and Germany. This stifles local entrepreneurship and encourages outflows of premiums from the domestic economy. 3. NATURAL CATASTROPHE INSURANCE And finally, we urge the government to create a policy environment to help homeowners to insure against climate related natural catastrophes. Typhoons and natural catastrophes are a leading cause of poverty in the Philippines. With the present leadership's strong anti-poverty agenda, we expect more action on climate adaptation, particularly disaster risk finance and insurance. If change is coming, then these are the changes we'd like to see.

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The Men Men The and Women Women and of PIRA PIRA of

Joselito C. Bantayan Bankers Assurance

Mark Lwin

AIG Philippines

Michael F. Rellosa Joli Co Wu

Fortune General Insurance

QBE Seaboard Insurance

Augusto P. Hidalgo National Reinsurance Corporation of the Philippines

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MANAGEMENT David P. Mercado, Jr. Stronghold Insurance

Armand Pesigan Pioneer Insurance

ROGELIO J. CONCEPCION General Manager MADELAINE P. TERCERO SHIRLEY F. DELA CRUZ MARILOU C. SERRANO Executive Assistants AGNES L. SILAYA CIELITO L. MONCAL ADELFA B. SARZUELA Accounting ALEXANDER D. PABLO RONALD C. CONCEPCION JOSEFINO I. MONTECLARO, JR. MANUELITO N. NIGOS Member Services & Industry Support JERRY L. GARCHITORENA LARRY E. VIDAL GREGORIO M. BARRIOS Management Information System Support

Rebecca B. dela Cruz Alliedbankers Insurance

Arturo B. Reyes MAA Insurance

SANTIAGO S. BANGLOY TERESITA F. MONTECLARO BENJAMIN I. BAMBA, JR. Office Administration & Records

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COUNTRY OVERVIEW

Breaking of a new dawn “THE OLD WORLD IS DYING, AND THE NEW WORLD STRUGGLES TO BE BORN.” -- Antonio Gramsci, Italian theorist and politician A new era is unfolding for the Philippines. Three decades after the downfall of dictator Ferdinand Marcos, the Filipino people once again expressed their demand for real change through their ballots. No longer content with empty slogans from traditional candidates, 38.5 percent of the electorate voted for 71-year-old Rodrigo Dutetre — the swashbuckling mayor of Davao City in Mindanao — as the new president of the republic in the national elections held this year.

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COUNTRY OVERVIEW

It was one of the most credible and peaceful presidential elections in recent memory. Voter turnout was the highest on record. And for the first time in history, the new president openly claims to have leftleaning convictions. Affectionately known as “Mayor Digong," Duterte boasts of more than two decades of experience in public office, having turned — through the proverbial iron fist — a wild Davao City into of the safest and most prosperous places in the Philippines. He has also a long record in advancing the rights of gender minorities and pushing for progressive programs in local government. He is no ordinary politician. Experts described him as a ‘meta-candidate’ who changed not only the very concept of and expectations of candidates but also the rules of the game. With no war chest to speak of, he campaigned through social media and produced one controversy after another by attacking institutions such as the powerful Catholic Church. He treated his candidacy as a matter of life and death, telling his supporters that he was their "last card." Yet he also reminded everyone that the president could also be an ordinary person, a sinner, and a struggling student who barely passed his courses — an extraordinarily “ordinary” Filipino. Politics is a game of connecting to the audience, of establishing affinity with the electorate. Arguably no one has done it better than Duterte in this year's elections. No wonder then that Duterte has never lost a single election in his life. But how did he become the 16th president of the Philippines? Especially when one considers how only a few months back many dismissed him as a loose canon, a political outsider with no realistic chance at the highest office in the country. No less than Duterte himself at some point considered withdrawing from the race. After all, the field was just too tight and competitive for him.

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He confronted establishment goliaths like Vice President Jojomar Binay, who boasted a nationwide network of patronage linkages. He also faced a stiff challenge in the Wharton-trained interior secretary Mar Roxas, who was expected to leverage the formidable machinery of the ruling party. His fiercest competition, however, was Grace Poe, an American-educated senator, who combined a sleek reformist platform with a potent populist appeal, thanks to her foster parents, the late Fernando Poe and Susan Roces, who are considered celebrity royalties. Dutere was, in the words of Filipino sociologist Randy David, “until very recently an outsider to national politics whom very few thoughtful Filipinos took seriously.” But this apparent weakness turned out to be his strongest weapon in the race. Duterte’s astonishing success was due to perfect timing. He was the beneficiary of an emerging trend of ‘grievance politics‘ in the Philippines, and throughout the democratic world. Most of the electorate were just sick and tired of mainstream politicians. With much of the population mired in crushing poverty, only a select few truly enjoyed the fruits of political freedom brought about by the downfall of the Marcos dictatorship. This engendered a democracy fatigue among a growing number of Filipinos. Experts say the Philippines fell into what can be called "strongman syndrome," the simplistic belief that only toughtalking leaders can address complex 21st century challenges. Duterte was also the beneficiary of the mistakes of his opponents, some of whom carried their own skeletons in the closet. On one hand, the populist Binay, who could also boast his own Makati model of success, was racked by corruption scandals. On his part, Roxas, the anointed successor of President Benigno Aquino III, largely ended up defending the incumbent’s

mixed track record rather than promoting himself. In short, Roxas became a referendum on Aquino -- his huge mistake was he tried to sell continuity to voters crying for change. When it comes to Poe, who was the leading candidate throughout much of the campaign period, she suffered from guilt by association. More than her legal battle on question of eligibility, what hurt the former American citizen the most was her association with oligarchs and a convicted plunderer, the deposed President Joseph Estrada. Towards the end of the race, Duterte was in a strong position to portray all his opponents as incompetent, crook or puppet of the oligarchy. Finally, Duterte launched an impressive campaign, anchored on social media, which presented the mayor as an uncompromising, independent and authentic statesman who could turn the Philippines into a safe and prosperous place. As a candidate from the margins, he promised more political autonomy and fiscal resources to peripheral regions of Visayas and Mindanao. He ended up dominating the race in southern island of Mindanao and vote-rich central islands of Visayas. Duterteâ&#x20AC;&#x2122;s off-the-cuff rhetoric was enough to get the

support of a plurality of disillusioned voters who saw in him the promise of radical change When it comes to foreign policy, however, Duterte is a diplomatic-disaster-in-the-making. After his despicable rape joke during the campaign, he came up with another gaffe of telling ambassadors of the United States and Australia to â&#x20AC;&#x153;shut their mouthsâ&#x20AC;?. He also branded the United Nations as "useless" and threatened to curse US President Barack Obama if ever he questions his bloody war against drugs. A second, more careful look, however, reveals a largely pragmatic statesman, who discerns the complexities of the world. He is also an entertainer who always tries to play to the crowd and project a tough image to a nation desperately looking for a leader. He is more consistent, though, in his statements to launch a direct dialogue with China and, if necessary, negotiate a joint development agreement across contested waters in Philippine territory to avoid direct war. He has also never wavered in his fight against illegal drugs which, two months after his assumption of office, has already resulted in more than 2,000 deaths and jails packed to the brim with drug suspects.

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TYPHOON NONA A boy cautiously crosses a flooded street in the aftermath of Typhoon Melor (Nona) that struck the Visayas in December 2015, killing 42 people.

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COUNTRY OVERVIEW

The threat of natural disasters The Philippines is one of the most vulnerable countries in the world to disaster and climate change. With over 7,000 islands, and over 36,000 kilometers of coastline, nearly everyone – or 74 percent of the population – and everywhere – 80 percent of the land area – are vulnerable to disaster, with the capital of Manila considered at “extreme risk.” Typhoons and storms, which make up 58 percent of all disasters in the country, related flooding (25 percent) and landslides (6 percent) pose the greatest threats to the country. Storms surpass all other disasters in terms of number of fatalities, people affected and economic damage. Though less regular than hydrometeorological disasters, earthquakes (five percent), volcanic eruptions (5 percent) and drought (less than 1 percent) can also have devastating effects. Cumulatively, these disasters cause an average of over 1,000 deaths per year. The Philippine government, international and local NGOs are all making attempts to address climate change and disasters at various levels. However, many of the resources put aside for this purpose are re-directed to emergency response when disasters strike, such as Typhoon Yolanda (known as Haiyan internationally) in November 2013, and the flash floods caused by Typhoon Sendong (Washi internationally) in Mindanao in December 2011.

Attempts to defend the nation against disasters are complicated by social forces, such as high poverty, urbanization in coastal regions, and environmental destruction, including illegal mining and logging. However, spurred on by the nearly existential threat to the country from disasters, many expert groups have been successful implementing various disaster preparedness and risk reduction programs in the Philippines at the community level. The Filipino population and economy are growing rapidly, especially in urban centers, where over 65 percent of the country lives, 45 percent of it in poverty. While the urbanization policy has been good for economic growth, it has also increased the vulnerability of its 25 largest cities, most of them on riverbanks and coastlines. Urban vulnerability is made worse by poor housing conditions, and the low adaptive capability of the urban poor. Antonia Loyzaga of the Manila Observatory noted that “the Philippines is an

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TYPHOON YOLANDA The powerful storm surge from super typhoon Yolanda grounded these ships in Tacloban and left more than 6,000 dead in November 2013.

archipelagic country with a declared government policy that supports the urbanization of coastal cities in order to spur economic growth. Hyper-concentrating people and economic resources in coastal areas – without investing in the institutional capacity to build a shared understanding of the science of integrated risks from climate change and geological hazards – is a recipe for disaster.” Outside of the cities, the farmers and fishermen are most affected by natural disasters. With one-third of the population working in agriculture, natural disasters also threaten food security and major sources of livelihood. Droughts, floods and cyclones all affect the agricultural sector and the livelihoods of farmers and fishermen. Frequent storms increase the salinity level of irrigated land,

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leaving it unfit for agriculture, while warmer ocean water damages coral reefs, the feeding grounds for many species relied upon by local fishermen. Environmental degradation, including logging, mining, also exposes communities to higher risks. Specifically, these factors contributed directly to devastating flash floods that struck Mindanao in 2011. The Philippines is one of the most vulnerable countries in the world to climate change. Rising sea levels are a direct threat to approximately 70 percent of the 1,500 municipalities in the Philippines , many of which may need to relocate as a result. Climate change has also increased the frequency and severity of natural disasters.

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Studies and climate change simulations show that rainfall will increase in intensity during the wet season in the Central Visayas and Southern Tagalog provinces. The country is also expected to experience longer dry seasons, exacerbated by El Niño. For the last five years, the Philippines was in the top three countries for the number of natural disasters, with the most frequent being storms and floods. Storms surpass all disasters in the country in terms of highest number of fatalities, people affected and economic damage . Furthermore, the strong winds and heavy rainfall which accompany typhoons often lead to flooding or landslides. Most typhoons originate from the southeast and travel north, increasing in speed and intensity as they approach the Philippines. Luzon, Samar, Leyte, Eastern Quezon Province and the Batanese Islands are most prone to typhoons. More than 24,000 people have been killed by storms since 2010, with another 99.6 million people affected. Economic losses for the country have totaled $5.9 billion. Typhoon Haiyan (Yolanda) in late 2013 increased these totals

between 15 and 25 percent . Floods and landslides commonly occur as secondary hazards induced by typhoons and monsoons. The Philippines has mountainous terrain with a sharp drop to coastal areas, exposing communities in low-lying areas to high risk. Instances of drought are infrequent, typically happening as a result of El Nino. However, when they do occur, they can cause extensive damage to the population and its agriculture. Lack of water resources has a trickle down effect to the manufacturing sector as well, leading to lower economic production. Located on the Pacific Ring of Fire, the location of 90 percent of the world’s earthquakes, the Philippines has experienced numerous high magnitude seismic events. The country also has 22 active volcanoes. Both events are rare, but extremely destructive. In 2004, the Philippine government, combine with the Japan International Cooperation Agency, studied the West Valley fault, which runs through Metro Manila and its environs in order to identify vulnerable areas, according to flammability, evacuation difficulty and building collapse.

MOUNT PINATUBO ERUPTION A van flees for safety during the 1991 eruption of Mount Pinatubo.

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COUNTRY OVERVIEW

Home of Asia's happiest workforce The Philippines has the highest job satisfaction rate in Asia, as the fastgrowing economy lifts companies' productivity and their workers' happiness, a report recently showed. The Happiness Index, compiled by online employment portal JobStreet, showed Filipinos were happiest with their jobs compared to workers from six other Asian countries. On a scale of 1-10, with 1 being extremely unhappy and 10 being extremely happy, Filipinos averaged 6.25 points. Only Indonesia came close with 6.16 points. Thailand (5.74), Hong Kong (5.54), Vietnam (5.48) and Malaysia (5.22) followed. Singapore scored the lowest in the group with 5.09 points. JobStreet Country Manager Philip Gioca said the continued growth of the economy was lifting the spirits of Filipino workers. "When output is growing, productivity is there, targets are met, you can see happier people," he explained. "It's actually virtuous circle. When you have happy people, you have more productive people. And then the companies grow, and they want to invest more

in their people." According to the Happiness Index Report, the most important factor for Filipinos to feel satisfied at work is having good relationships with their colleagues. "It's the Filipino culture. We're highly relational and we want to establish personal relationships with the people we spend a third of our day with," Gioca said. A convenient work location also boosts job happiness, especially given the traffic jams around Metro Manila, the report read. A strong company reputation is also important to Filipinos since they feel it lends stability to their career. On the other hand, the top factors that convince a Filipino employee to leave a job are: low pay, lack of benefits and lack of training opportunities. One in three Filipinos said they would feel happier at work if they were paid more, the report read. One in five said they would be more satisfied if they got a new job instead. busy at work.jpg Broken down by sector, workers in the government,

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FLOOD SURFING These Filipino boys know how to have fun.

education and energy industries reported the highest job satisfaction. However, Gioca pointed out, the factors behind job happiness and unhappiness differed among workers depending on what stage they were in their career. Fresh graduates, junior executives and supervisors all prioritized good working relationships. Managers focused on company reputation. Poor pay and benefits discouraged fresh graduates and junior executives. A lack of training opportunities made supervisors and managers dissatisfied. "You can see that while people are younger, they're really more focused on themselves and their colleagues. As they go up the corporate ladder, it becomes more about the company and their opportunities to develop themselves and other people," Gioca said. Broken down by sector, workers in the government, education and energy industries

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reported the highest job satisfaction. Those employed in retail, banking and business process outsourcing were the least satisfied, the report showed. The findings of the survey underscored the fat that Filipinos are among the world's happiest people. A Gallup poll released last year for the United Nations' International Day of Happiness showed the Philippines ranked fifth with a score of 80, along with Switzerland, and Uruguay. Paraguay topped the list of happiest countries with a score of 89. On second place are Colombia, Ecuador, and Guatemala with a score of 84. On third place are Honduras, Panama, and Venezuela with a score of 82. On fourth place are Costa Rica, El Salvador, and Nicaragua. Gallup conducted face-to-face interviews with people in 143 countries, asking them if they had five positive experiences the day before the survey.

Gallup said: "More than 70% of people worldwide said they experienced a lot of enjoyment, smiled or laughed a lot, felt well-rested and felt treated with respect. Additionally, 50% of people said they learned or did something interesting the day before the interview." It added, the index score for the world in 2014 is 71, which has been "remarkably consistent through the years." The Philippine government was elated with the

results. The Philippines has consistently placed in Gallup's Positive Experience Index, placing sixth in 2014 and fifth in 2013. According to the U.N. website, the International Day of Happiness was first celebrated in 2012, after the U.N. General Assembly adopted a resolution "recognizing the relevance of happiness and well-being as universal goals and aspirations in the lives of human beings around the world and the importance of their recognition in public policy objectives."

LIFE GOES ON A survivor of super typhoon Yolanda plays basketball in a destroyed playground in Tacloban City

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COUNTRY OVERVIEW

Business optimism grows under DU30 Businessmen are more optimistic under the administration of President Rodrigo Duterte compared to the previous one. A new survey of CEOs has revealed that most businessmen believe the domestic economy will surpass the 6 to 7 percent Gross Domestic Product (GDP) target in the next two years. The Philippine CEO Survey Report showed that 65 percent of the 111 CEOs surveyed said the Philippine GDP will exceed its growth target in 2016 against only 52 percent in 2015. Majority or 59 percent from 48 percent in last year’s survey also believed that a 6-7 GDP will be surpassed in 2017. The survey, however, was conducted end of July to August 26 this year, a week after the deadly bombing in Davao City, the hometown of President Rodrigo Duterte, who immediately placed the nation under a state of lawless violence. Lawyer Perry Pe, president of the Management Association of the Philippines (MAP) that commissioned the survey to Isla Lipana & Co./PwC Philippines, attributed the higher business confidence level to the successful and peaceful elections and the smooth transition to the new administration. “Business is confident because there is political will,” said Pe as he explained that CEOs would be

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less optimistic if the President steered away from his campaign promise to end illegal drugs, criminalities and graft and corruption. Alexander B. Cabrera, chairman and senior partner of Isla Lipana & Co. , said a higher level of confidence has emerged in the survey because all the previous issues hounding CEOs in the 2015 survey had already been resolved. For instance, the top concerns on the CEOs’ minds before were global and geopolitical issues, including the Brexit, the territorial dispute between China and the Philippines but which was decided already by the UN, cyber attacks, and the national elections in May. “All these issues have been accepted and resolved resulting in a higher business confidence,” Cabrera said. But in terms of corporate revenue prospects, the survey showed a decline in optimism. Sixty-five percent of CEOs were confident of revenue growth prospects in the next 12 months from 73 percent

Businessmen are confident because there is political will on the part of the new leader. Atty. Perry Pe, President, Management Association of the Philippines

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COUNTRY OVERVIEW last year. But a higher number of CEOs at 69 percent were confident of higher revenues in the next three years. The top three threats to company’s growth prospects were bribery and corruption, increasing tax burden, and overregulation. CEOs also would like government to prioritize the top five initiatives in the next six years. These include physical infrastructure, good governance, internationally competitive/effective tax system, peace and order and adequate digital infrastructure. There was also a slight decline in the number of companies planning to enter into strategic alliances or partnerships in the next 12 months from 81 percent to 76 percent which it attributed to government’s being able to ease entry of foreign investments on enter on its own and without any local partner like the banking law. The top five industries that companies would like to compete in the next six years are entertainment and media, real estate and construction, business process outsourcing, retail and technology. On the area of leadership, younger CEOs or 45 years and below said that the top traits the next generation of leaders should possess are integrity, ability to manage, collaboration, agility and innovation. For 46 year-old and above CEOs, future leaders should have the ability the to manage across borders, integrity, strategic thinking, innovation and humility. The CEOs also said that the top issues future leaders will face are regulatory risks, availability of talent, work life balance, and more intense competition. In hiring new leaders, CEOs believe that the most important qualification is relevant experience or personal experience of the leader. All the others like certifications, titles, and memberships in

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in professional organizations were considered secondary or “just good to have.” Pe even expressed optimism that the country’s economic growth would be sustained saying “there is no other way, but up.” The current government, he said, also benefited from the good governance policies of the past government of then President Aquino. He said that the bombing of Mindanao has only “shaken Mindanao a bit but not the entire country, especially Manila.” There had been bombings also during the Aquino and Arroyo administrations, he said. “Business sees opportunities in bad and good times,” he pointed out. “The declaration of the state of lawless violence is guaranteed under the Constitution and is the prerogative of the President,” he said stressing the President himself campaigned on a platform of peace and order and reducing criminality, and to leave business to business people.

CEOs would like government to prioritize the top five initiatives in the next six years physical infrastructure, good governance, internationally competitive/effective tax system, peace and order and adequate digital infrastructure.

1ST ASEAN APPEARANCE President Duterte made a strong impact in the 2016 ASEAN Summit in Laos. The President assured that he will deliver on his campaign promises to make the Philippines orderly and peaceful so as to attract investments.

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COUNTRY OVERVIEW

Duterte's war vs. drugs The United Nations and other foreign agencies have no reason to worry about President Rodrigo Duterte's ongoing war on drugs. This was the statement given by Foreign Affairs Secretary Perfecto Yasay as he assured the UN General Assembly in New York that the government remains committed to international norms and human rights amid criticisms on summary killings of drug suspects. Yasay said the Duterte administration’s war on drugs, corruption and crime has been widely misunderstood. “Our actions have grabbed both the national headlines and international attention for all the wrong reasons,” Yasay said. Yasay clarified that it was never the government’s policy to kill people involved in the illegal drugs trade, but police officers have the right to defend themselves from criminal elements who resist arrest. Human rights groups have criticized the Duterte administration’s war on drugs that has led to summary killings of drug suspects, reaching more than 3,000 now.

Yasay said President Duterte has declared the rule of law and respect for due process should prevail at all times. He urged foreign ministers from UN member states gathered for the annual assembly in New York to understand the deeply seated problem of corruption that led to the worsening crime and prevalence of illegal drugs in the Philippines. “Our people recognize the peril these evils pose to our development and our democracy,” he said. He said corruption has been “a breeding ground” for illegal-drug trade, which seriously threatens the country’s peace and order and impedes sustainable development.

“We have not and will never empower our law enforcement agents to shoot-to-kill any individual suspected of drug crimes. And yet, under our established rules of engagement, our police have the right to defend themselves when their lives are threatened,” said Yasay.

“It has torn apart many of our communities, destroyed our families, and snuffed out the hopes and dreams of our people – young and old – for a bright future,” he said.

He stressed that “extrajudicial killings have no place in our society and in our criminal justice system.”

Rights groups, however, have for years condemned Duterte for backing death squads during his former

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WAR ON DRUGS MISUNDERSTOOD Foreign Secretary Perfecto Yasay tells the United Nations that the onging war on drugs in the Philippines respects human rights.

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There is no real program being offered by the government. Once you surrender, you go home and it's assumed you'll stop being an addict. That is not real thinking. You cannot stop addiction just by fear. It's a sickness, and you need psychosocial intervention to cure it. Argentine priest Luciano Feloni about the ongoing war on drugs

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EARTHQUAKE DRILL Members of the Philippine National Police participate in an earthquake drill as part of the country's Disaster Risk Management program. PIRA has been pushing for a Natural Catastrophe Insurance Pool to empower Filipinos against the risks of catastrophes like earthquakes.

role as mayor of the city of Davao and opposed his flagrant disregard for human rights. The fear of critics that Duterte would make good on his campaign rhetoric and launch a violent crackdown now appears validated, as vigilantes and police are essentially being given a free rein to carry out extrajudicial killings. Meanwhile, the intensified anti-illegal drug campaign has resulted in the dramatic decline in the number of crimes across the country. The Philippine National Police (PNP) reported in August that crimes dropped by about 49 percent compared to last year. “This only goes to show that most of these crimes that are happening in our communities are drugrelated. That’s why when we focused our resources and attention on the drug problem, crimes also dropped,” said PNP Chief Ronald Dela Rosa. Tens of thousands of drug users mostly addicts of

RELIGIOUS APPROACH Selfconfessed drug users in Pasig undergo a moral recovery program.

shabu, a local form of methamphetamine, have turned themselves in to police custody, taking a chance on life in overcrowded jails rather than risk getting gunned down on the streets. Father Luciano Feloni, an Argentine priest who is pastor of Our Lady of Lourdes Parish in Caloocan City, on the edge of Manila, has begun a program dubbed "Healing not Killing" that provides rehabilitation to surrenderees. Working with local government officials and the police, Father Feloni garnered commitments to get help for users who were willing to turn themselves in. "There is no real program being offered by the government. Once you surrender, you go home and it's assumed you'll stop being an addict. That is not real thinking. You cannot stop addiction just by fear. It's a sickness, and you need psychosocial intervention to cure it," he said, "If killing isn't a solution, neither is surrender. It's just the beginning. Unless you offer something, people cannot really change."

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COUNTRY OVERVIEW

For so long, Mindanao has been called the “land of promise” because of its rich natural resources, including vast fertile lands, and even its location out of the way of typhoons. It has also been known as the food basket of the Philippines, accounting for most of the country’s top agricultural products. About 75 percent of the country’s banana exports come from Mindanao, which makes the Philippines No. 3 in the global banana trade. The country’s second-largest island hosts some of the world’s largest pineapple plantations. It is also rich in minerals, fisheries and other resources. Sadly, Mindanao still has to see its promise turned into reality. Because of lack of development, some of the poorest regions in the Philippines are in Mindanao.

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All roads lead to Mindanao

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NEW TOURIST ATTRACTION President Duterte's residence in Villa Luista, Matina, Davao City, now attracts tourists from all over the country.

Part of the reason for the slow development of Mindanao is its small share in government expenditures. Based on published reports, the government has appropriated P380.9 billion for Mindanao, or 12.7 percent of the P3.002-trillion national budget for this year. The amount is bigger than the P285.4-billion (9.5 percent of the budget) for the Visayas, but smaller than the P594 billion (19.8 percent) for Luzon and the P457 billion (15.2 percent) for the National Capital Region.

develop the Davao Park District, its first township in Mindanao, which it planned to establish as a major center for information technology and business-process outsourcing in Mindanao. SM is also expanding its nationwide mall chain, with the construction of SM Cagayan de Oro and SM Butuan. Davao City hosts seven projects of Vista Land & Lifescapes, accounting for the most number of the company’s projects among cities outside Metro Manila.

In fairness, Mindanao’s share of the national budget has been increasing every year, although still short of the amount needed to catch up with other parts of the country.

The company, which has also established presence in other parts of Mindanao ahead of other major real-estate players, is launching 10 new projects in the Davao Region this year, including a boutique hotel that will be part of the commercial component of its existing Camella Northpoint condominium project in Davao City, a township development in Toril and a horizontal project in Tagum City, Davao del Norte.

The pace of development in Mindanao is also accelerating, largely because of the private sector, which has seen its huge potential. Three cities—Davao, Cagayan de Oro and General Santos —have emerged as urban growth centers in Mindanao, where large business players have established their presence. Davao City, which generated the largest demand for office space for the business-process outsourcing (BPO) industry in 2014, is now recognized as the outsourcing hub in Mindanao. The city of President Rodrigo R. Duterte is now considered as the economic center of Mindanao. In 2014 Megaworld announced a P15-billion project to

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The huge potential of Mindanao may finally be realized and its myriad problems and its economy will now receive better attention from the national government. As mayor, Duterte is credited with making Davao City one of the world’s safest cities. He has also developed Davao as a model for development for other areas of the Philippines. His election obviously is attracting the attention and significantly increase investors’ interest in Mindanao as the new growth hub in the Philippines.

THE EAGLE CALLED MINDANAO This 14yearold Philippine eagle is the Education Ambassador of the Philippine Eagle Center, one of the most visited places in the region.

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EDSA GRIDLOCK The economic boom of recent years has led to problems like traffic in the metropolis, particularly on this road called EDSA that cuts through 6 of Metro Manila's 17 local government units.

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INDUSTRY OVERVIEW

Getting smaller, growing bigger The Philippine Non-Life Insurance Industry, as expected, has gotten smaller once again. It is now composed of 69 companies -- 64 with non-life insurance licenses, four with composite license, and one with reinsurance license. Despite the reduction in number, however, the industry's premiums production has grown considerably. Even with less number of companies, the industry was able to post higher gross premiums. From P64.3 billion in 2014, the industry's Gross Premiums Written for 2015 was P74.683 billion, or an increase of 12.2 percent. This was brought about by a surge in premiums for Fire and Allied perils which registered a 16.8 percent growth from P25.2 billion in 2014 to P29.5 billion in 2015. The Philippines is experiencing a property boom, with condominium towers going up in key areas of the country. All of these towers are new business for insurers. With construction on the upswing, the demand for casualty insurance and surety bonds also went up proportionately. This segment of the market posted an equally credible increase of 16.81 percent -- or about P3.8 billion worth of new business for 2015.

Car sales are also on the rise. All car manufacturers have started launching new models since last year, hence the industry experienced a 7.7% growth in its Motor Car insurance business. This translated to about P1.4 billion in added premiums courtesy of the Motor Car line. The industry's assets also grew by about 1 percent in 2015 -- or almost P2 billion from P194.5 billion in 2014 to P196.4 billion in 2015 despite the reduction in the number of insurance companies. The industry's liabilities on the other hand went down in 2015, from P109 billion in 2014 to P106.4 billion or a 2.5 percent reduction. The industry's net worth also grew by 5.43 percent from P85.3 billion in 2014 to P89.98 billion in 2015. This, of course, is due to the Capital Build-Up program that the government mandated starting 2013 with the advent of the New Insurance Code. Based on data from the Insurance Commission, we know now that two non-life companies have net worth of over P10 billion each. Following them is one company with net worth over P5 billion, and trailing

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2011 P52 B GPW 88 companies

2015 P74 B GPW 69 companies

LESS IS MORE The NonLife Insurance industry now has less players but more production

behind are nine companies with over P1 billion in net worth but below P5 billion. There are now 32 companies with net worth of over P500 million but lower than P1 billion. And completing the list are 25 companies with over P100 million in net worth but less than P500 million The industry expects the number of companies and their net worth to change come 2017 as the capital build-up continues. Despite the low interest rates, however, the industry's investments managed to post an impressive 44.9 percent year-on-year growth from P2.7 billion to P3.9 billion. With companies now enjoying bigger capitalization, they have become more capable of retaining more risks. This is reflected in the industry's Net Premiums

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which posted a considerable increase, even higher than the Gross Premiums in terms of percentage. From P29.797 billion in 2014, the industry's Net Premiums for 2015 reached P46 billion, for a whopping 54.5% increase.

54.5% increase in Net Premiums Written for 2016

Credit here goes to Fire and Allied Perils whose Net Premiums more than doubled from P12.2 billion in 2014 to around P24.2 billion, or a 98% increase.

as the industry experienced major fires, including one that completely razed to the ground a footwear factory in Valenzuela City, killing 75 people.

The Net Premiums for the Casualty and Surety lines also had a major year -- growing by 21% from P8.35 billion in 2014 to P10.125 billion in 2015. The Motor Car line also had a great 2015 as far as retained risks are concerned.

There was also a passenger ferry that was destroyed by fire in August 2015 that added up to the industry's overall losses for the year of P12.9 billion, more than P300 million compared to the previous year.

Companies had a 9.98% increase in Net Premiums for Motor Car -- from P16.3 billion in 2014 to P17.963 in 2015. Since we had a big jump in Net Premiums, it only made sense that a similar jump was also registered in Premiums Earned.

Yet despite the slight increase in losses, the industry was able to register a very good net income to the tune of P5.65 billion, an increase of more than P1.6 million or about 42.6% from the P3.9 billion it posted in 2014.

The industry's Premiums Earned grew by 10.35 percent from P30.12 billion in 2014 to P33.24 billion in 2015.

To sum it up, 2015 in overall was a good year for the nonlife insurance industry, with loss ratio of 38.88 for all lines. It was a year of growth, a year of expansion, and a year of manageable losses for many of the industry players.

The year 2015 was marked by a 2.6% increase in losses

Credit goes to Fire and Allied Perils whose Net Premiums more than doubled from P12.2 billion in 2014 to around P24.2 billion, or a 98% increase. PIRA FACT BOOK 2016

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INDUSTRY ISSUES

Taking the lead in microinsurance The Philippines is now a role model in microinsurance. Speaking as a panelist during the 10th International Insurance Forum in Washington, D.C., Insurance Commissioner Emmanuel Dooc told the world how microinsurance now plays an important role in risk mitigation and raising awareness of the benefits of insurance, especially against catastrophic risks. Commissioner Dooc shared how microinsurance responded when super typhoon Yolanda (Haiyan) struck the country. He cited how the Philippine insurance industry paid 111,461 claims amounting to P532 million (USD 12 million). "During the aftermath of Typhoon Haiyan, the Philippines demonstrated impressive flexibility and reactiveness by undertaking certain measures to expedite the claims management process. In response to the insurance needs of the typhoon victims, the Insurance Commission established a Claims Action Center in the hardest hit province to provide one-stop shop to address inquiries from typhoon victims; and ordered the relaxation of documentation requirements on initial payments for death claims. The Insurance Commission was also instrumental in gathering updated information from the industry, especially from microinsurance providers, in regard to relief efforts and claims paid," he said. The commissioner stressed that developing countries are vulnerable to the onslaught of natural disasters, thus the challenge lies in how to make every household and business resilient in the face of such calamities. "The experience from Typhoon Haiyan has underscored

opportunities to integrate microinsurance into the country's Disaster Risk Management Framework such as greater demand for calamity insurance, livelihood protection insurance and crop insurance, and greater awareness of insurance which lead to development of new products," he said. "The Insurance Commission spearheaded a number of dialogues and participated in brainstorming sessions on disaster risk reduction, insurance strategy formulation and proactive mitigation efforts to cover natural catastrophes and disasters. As a result of the collective efforts, a draft Executive Order on catastrophe insurance coverage for middle class residential buildings and small and medium enterprises or the Philippine Catastrophe Insurance Pool was favorably endorsed by the Secretary of Finance to the Office of the President. The new President of the Republic of the Philippines has included climate change mitigation plans and programs in his platform of governance," the Commissioner told the conference.

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In response to the insurance needs of the Typhoon Haiyan (Yolanda) victims, the Insurance Commission with the help of PIRA established a Claims Action Center in the hardest hit province to provide onestop shop to address inquiries from typhoon victims; and ordered the relaxation of documentation requirements on initial payments for death claims. Insurance Commissioner Emmanuel Dooc

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EARTHQUAKE DRILL FINANCIAL Members of the Philippine National Police INCLUSION participate in an earthquake drill as part of Government and the country's Disaster Risk Management private sector work program. PIRA has been pushing for a together for financial Natural Catastrophe Insurance Pool to inclusion through empower Filipinos against the risks of microinsurance. catastrophes like earthquakes.

The commissioner added that as the country's insurance regulator, the IC makes it a point to be active in all efforts to ensure the presence of wide range of financial products and services that serve different market segments. During the panel discussion Commissioner Dooc mentioned the establishment of the Enhanced Microinsurance Regulatory Framework and the Microinsurance Frameworks for Agriculture, Pre-Need and Health. Recognizing the gaps in the delivery of insurance products to the public, the country's insurance regulator is making sure that insurance products are relevant, responsive and are appropriately designed, priced and tailorfitted to market needs especially those living in vulnerable communities and encouraging the utilization of innovative delivery channels to reach the unserved and underserved markets. Commissioner Dooc is also spearheading campaigns and advocacies that educate the public on the impending risks associated with climate change and global warming. The two-day international forum, hosted by the National Association of Insurance Commissioners of the United States of America (NAIC), was attended by U.S. insurance regulators, international insurance supervisors, federal financial regulators and insurance industry leaders from around the world.

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INDUSTRY ISSUES

Controversial scheme stopped The Makati Regional Trial Court (RTC) has permanently stopped the Land Transportation Office (LTO) from implementing the Reformed Compulsory Third Party Liability (CTPL) for vehicle registration. In a 14-page order, Makati Regional Trial Court Judge Edgrado Caldona of Branch 65 granted the writ of preliminary injunction filed by Standard Insurance Co., Inc. against LTO and Insurance Commission (IC) in December 2015. The CTPL is a mandatory insurance plan required by the LTO for vehicle registration. The “reformed” version is a modification of the CTPL. The new measure likewise requires an administrator, which insurers said would eventually turn out as the insurer, resulting in the non-life insurance industry becoming mere reinsurers. The court, however, said the LTO committed an act constitutive of grave abuse of discretion amounting to lack of or excess of jurisdiction when it “overstepped its office which is essentially overseeing the registration of motor vehicles and licensing of drivers.” Judge Caldona noted that the reformed CTPL was also deemed a violation of the Amended Insurance Code and the exclusive right of the Insurance IC to regulate the country’s insurance industry. “Thus, arrogate upon itself such power in derogation of IC’s authority respondent LTO inevitably committed

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an act constitutive of grave abuse of discretion amounting to luck of or excess of jurisdiction,” said the judge in his order. Caldona, who issued a temporary restraining order in December in 2015, said the Memorandum Circular AVT-2015-1975 or the CTPL project violated regulations on monopolies and restraining trade under the Constitution. The Philippine Insurers and Reinsurers Association (PIRA) has vehemently opposed the RCTPL scheme. PIRA members have unanimously voted to support all legal actions against the LTO to prevent it from implementing the circular imposing the RCTPL. "We in PIRA believe the LTO does not have the legal right to regulate insurance business. Under the Insurance Code, such power and responsibility reside only in the Insurance Commission. We also believe that it is illegal for the LTO to issue an order limiting the business of issuing CTPL insurance to a select number of insurance companies, and worse, to appoint an administrator that virtually takes over the function of the Insurance Commission," the group added.

We in PIRA believe the LTO does not have the legal right to regulate insurance business. Under the Insurance Code, such power and responsibility reside only in the Insurance Commission. We also believe that it is illegal for the LTO to issue an order limiting the business of issuing CTPL insurance to a select number of insurance companies, and worse, to appoint an administrator that virtually takes over the function of the Insurance Commission. PIRA FACT BOOK 2016

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INDUSTRY OVERVIEW

Gov't joins insurers in fight vs. fraud The new government of President Rodrigo Duterte is joining forces with the insurance industry in its bid to address motor car insurance fraud. The new chief of the Land Transportation Office (LTO) has urged insurance companies to help him fight corruption in his agency and to address insurance fraud. Speaking at the 1st Motor Car Insurance Summit at the PICC,

"It is not the LTO's job to sell insurance or even regulate insurance companies. The Insurance Commission is the one that has the mandate to regulate these companies. We will just follow whatever the IC says," he said.

Assistant Secretary Edgar Galvante told insurance executives that he is willing to work with them to develop a database that would address flaws in LTO registration, which are oftentimes cited as a cause of insurance fraud.

His pronouncement was welcomed by a loud applause from the audience.

"Let's develop a database that could solve this (insurance fraud). Let us work together," he told more than 200 attendees of the summit that included members PIRA and officers of the Philippine National Police Highway Patrol Group (PNP-HPG). Galvante stressed that the LTO will not anymore accredit insurance companies and will simply recognize the list of insurance companies authorized by the Insurance Commission to sell car insurance. And he said LTO employees from hereon will be prohibited from selling insurance or recommending certain insurance companies to motorists who register their motor vehicles with the agency.

Michael Rellosa, deputy chairman of PIRA, considered Galvante's declaration a "whiff of fresh air that the insurance industry badly needs." "This is certainly a great news for all of us. Change is indeed coming," he said. PIRA members shared their experiences on how they are dealing with insurance fraud. Ramon Dimacali, president of FPG Insurance and former president of IBM Philippines, presented his company's best practice of using technology in addressing fraud. Dimacali developed ways of detecting and preventing fraud through the efficient use of computers and even social media. His company now processes insurance claims through the Internet, making fraud easier to catch.

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Officers of PIRA, the Highway Patrol Group, and adjustment and claims associations discuss ways on how to prevent insurance fraud.

HPG director Sr. Supt. Fortunato Guerrero

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LTO chief Edgar Galvante

He estimates that 10 percent of the P7 billion car insurance claims the country's insurance industry received last year could be fraudulent. Galvante, meanwhile, was surprised to hear the huge cost to insurance companies of insurance fraud. "Before I thought it was the insurance companies that are fraudulent. Yun pala insurance companies din ang biktima," he said. Senior Superintendent Fortunato Guerrero of the PNP-HPG agreed with this observation of Galvante. The police officer presented ways by which individuals and organized crime syndicates defraud insurance firms by filing fabricated claims through staged accidents, staged or even imaginary carnapping, and other modus operandi. He shared the good news, however, that there is now a pending legislation that raises the penalty for carnapping.

FPG Insurance CEO Ramon Dimacali

"Carnapping incidents have actually gone down by 19 percent for the first semester of 2016 -- from 6,302 for January to June last year to 5,087 for the same period this year," he said. "Yet we still have so much to do. We truly need to work together to fight this," he added. Just like Galvante, Guerrero vowed to help curb insurance fraud by sharing data with insurance companies and being steadfast in going after those that perpetrate this crime. Meanwhile, lawyer and motoring journalist Robby Consunji urged insurance companies to consider the emotional impact of accidents or car theft on motorists who file insurance claims. He cautioned insurance firms against putting so much barriers to fraud that they tend to make the filing of claims a tedious process. "Car owners have an emotional attachment to their cars. This is something insurance companies must consider when processing claims and watching against insurance fraud," he said.

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Lawyer Arturo Carlos Astorga

PERSPECTIVES

Surviving together By Michael F. Rellosa Chairman, ASEAN Insurance Council

The ASEAN Insurance Council or AIC was established in 1978 as a regional platform for insurance leaders, professionals and practitioners to network and share their knowledge and expertise for the development of the insurance industry in Southeast Asia. The chairmanship of this organization rotates among the 10 member countries every year, and it is the Philippines' turn to take on the mantle of leadership this year. What an opportune time it is to be at the helm of the association! As you probably know, ASEAN has begun the process of economic integration, which, once completed, will make the region the 7th largest economy in the world. With a population of over 600 million, ASEAN is more populous than North America or even the European Union. It has the potential to be the fourth largest economy in the world by 2050. Everywhere you look in the region today you would see growth -- from Myanmar and Vietnam in the north to Indonesia in the south. You could say that if we could only achieve this single market and harness its potential, we could all look forward to an era of shared growth and prosperity for all of us. But we all know that we still have a long way to go before we achieve this. Things are moving at a pace that is slower than expected. We were expecting the integration to happen by end of 2015 but we are now the middle of 2016 and we still have a lot of work to do. The reality is ASEAN is generally poor and it will take years, if

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not a full decade, before we could get all member countries to move side by side. One major challenge that we have to contend with is the reality of natural catastrophes. Most countries in ASEAN are exposed to the risk of NatCAT. ASEAN is situated in what is considered as the worldâ&#x20AC;&#x2122;s hotbed for natural disasters -- the socalled Pacific Ring of Fire The map of Southeast Asia would show you that our country, together with Indonesia, is blessed with so many active volcanoes -- 79 in all -- 20 of which are categorized as "historical," meaning they have erupted within the last 600 years -- and 59 as "holocene," which means they have erupted within the last 10,000 years based on analyses of datable materials. Our region is also situated in the so-called Typhoon Belt, the area in the Pacific where typhoons are formed. No wonder we in the Philippines are visited by at least 20 typhoons each year, with at least 9 making a landfall.

ASEAN has to contend with the reality of natural catastrophes since most of its members are exposed to this risk, being situated in what is considered as the world’s hotbed for natural disasters. PIRA FACT BOOK 2016

All in all, the Asia Pacific region where ASEAN is located has had more than 1,700 natural disasters the past 12 years. These disasters had caused more than half a trillion US dollars in economic damage. And from these disasters, more than 350,000 people were killed and some 100 million people had been negatively affected. Experts estimate the annual damage from natural disasters to be around 5 billion US dollars, with countries like ours, Laos, Myanmar, Vietnam and Cambodia with higher share of these losses. This figure is likely to increase with the rise in population, urbanization and the region's gross domestic product or GDP -- factors that push more people and assets into zones vulnerable to natural catastrophes. And the story does not end there. Every 100 years on average, the region is forecasted to face losses that could

As insurers, we cannot just close our eyes and pray that these things would not happen. We have a fiduciary duty to our clients, and we have to base our decisions on science and mathematics, not just on guess work.

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reach around 18 billion US dollars. And catastrophes that happen once in 200 years -- such as the Big Earthquake being feared could happen to Metro Manila -- would cripple economies like the Philippines'. As insurers, we cannot just close our eyes and pray that these things would not happen. We have a fiduciary duty to our clients, and we have to base our decisions on science and mathematics, not just on guess work. It is here that the NatCAT models being developed come in handy. Because we truly need to study these natural catastrophes to come up with the best mathematical formulae to prepare for them and develop partnerships with other stakeholders that would eventually result in the survival of our industry and the fast recovery of our region.

The only way for people to see the value of insurance is to make them understand insurance. We at the ASEAN Insurance Council fully support all efforts to prepare the industry for natural catastrophes. As early as 2007, we have started gathering academic experts specializing in natural disaster research to facilitate dialogue and information exchange. We have created the ANDREWS Committee or the ASEAN Natural Disasters Research Works Sharing Committee comprised of representatives from various technical universities and relevant research institutes in ASEAN. The goal of this committee is to provide a platform for insurance industry professionals, academicians and students from the region to share and exchange information on the latest scientific research and developments relating to natural disasters as well as risk transfer mechanisms for catastrophe risk management. Another initiative of the AIC is the CARMA website. CARMA stands for Catastrophe Risk Management. The website is designed to offer fast and convenient access to natural disaster topics and related documents, including articles to spread knowledge and enhance awareness in mitigating risks. Its ultimate goal is to be a platform for collaborative information sharing, rating, and the crediting of individuals and institutions for their valued contributions. Once completed, any insurer in ASEAN could browse the site, do searches by area or topic, and download academic papers or projects of interest. You see, we are doing a lot in the region when it comes to natural catastrophes. But we are not stopping there.

technology is already available and we want to look into that technology and maybe look for a way for ASEAN to be able to use it in a region-wide scale. We are also investing heavily on promoting microinsurance in the region. Most of the victims of disasters come from low-income sectors of society, and the only way to really help them is to empower them to help themselves. And we can do this through microinsurance. And finally, we are putting most of our bets on insurance education. It is unfortunate that a region besieged regularly by natural disasters is where you would find the lowest insurance penetration rate in the world. Why is this so? The only reason I can think of is because people still do not realize the value of insurance. The only way for people to see the value of insurance is to make them understand insurance. We have to explain to them the concept of risks and the fundamental principles that govern insurance. We in PIRA are going from one university to another conducting lectures on this. We want young people to learn what insurance is, and to correct the misconceptions they may have about our industry. And this activity is being done by insurance associations in other countries in ASEAN as well. But as they say, the proof of the pudding is in the eating. If we want people to really appreciate the value of insurance, then we must make them experience insurance.

In the coming months, we would be promoting more collaboration in the area of disaster risk mitigation. We all know that we cannot stop disasters, but we can lessen their impact through forecasting and community preparedness.

We as insurers have to make our presence felt, especially in times of disasters. Insurance is an intangible product. Most of the time, it is just a piece of paper that contains a promise. And it is during disasters that this promise is fulfilled.

These are the things we are supporting. We want government agencies in charge of forecasting in each country to collaborate with one another, and we also want local leaders to learn from the experience of other countries in preparing their communities for disasters.

Disasters, therefore, should be our shining moment. Disasters should be the time when our clients could boldly say, "Thank goodness, I'm insured!" When that happens, we know that our clients have survived, and our industry would survive. I hope we will all work together to achieve this goal. Let us survive together. And the only way to do that is to help others survive.

We want to invest in early warning systems. The

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PREMIIUM BUSES The Department of Transportation began in 2016 what it calls as P2P or PointtoPoint premium bus service in key areas of the metropolis. Here, the DoTr dry runs double decker buses as part of this P2P service.

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ASEAN INSURANCE COUNCIL VILLAGE The ASEAN Insurance Council donated funds for the construction of these houses for survivors of super typhoon Yolanda in Alangalang town in Leyte. The houses were constructed through the efforts of the Gawad Kalinga and PIRA.

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INDUSTRY ISSUES

NatCAT pool in limbo The proposed catastrophe insurance for all households and micro, small and medium enterprises (MSMEs) has been put on hold indefinitely. This has been announced by the Insurance Commission (IC) after the proposal was reportedly dropped following Finance Secretary Carlos G. Dominguez III’s opposition to the proposed disaster insurance. “The last thing that I heard of it, Secretary Dominguez is against it,” said Deputy Insurance Commissioner Vida Chiong in published reports.

catastrophe pool insurance scheme, but opposition from the Department of Finance effectively shelved the proposal.

PIRA has been pushing for an Executive Order that would introduce the natural catastrophe insurance for all households.

PIRA and the Insurance Commission have been lobbying for the said order during the time of President Benigno S. Aquino III to have catastrophe insurance for disasters, such as earthquakes and floods.

PIRA believes the EO is necessary to allow the insurance pool to gain enough volume and make it sustainable, amid the huge risks for losses on claims due to earthquakes and floods. PIRA is the proponent of the catastrophe insurance and it helped the IC draft the proposed executive order for the cover. Ms. Chiong said the earlier endorsement of the proposal by Dominguez’s predecessor, former Finance Secretary Cesar V. Purisima, is no longer valid, and the draft executive order will require Dominguez’s endorsement before it could reach President Rodrigo Duterte’s desk. The Insurance Commission earlier pushed for the approval of the draft executive order and still supports the natural

However, the EO did not materialize before Aquino stepped down from office on June 30. The proposal was supposed to set up a catastrophe insurance pool where insurers would underwrite disaster policies according to their corresponding subscriptions to the pool. PIRA says the insurance coverage would be designed for households and small businesses. It hopes to spread the risk over a critical mass to make such insurance viable. ASEAN Insurance Council Chairman Michael Rellosa said the amount

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According to Lloyd’s City Risk Index, which assesses the amount of risk of loss in a particular city, Metro Manila has an average annual GDP of US$201.08 billion, and more than half of this amount, or $101.09 billion, is at risk of being lost in a natural catastrophe without any form of insurance coverage.

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of assets of MSME's will be wiped out if a catastrophe such as the shaking of the West Valley Fault ever occurs. This, he said, makes it imperative for the Philippines to come up with a catastrophe insurance pool, which will cover all households and medium and small enterprises against big natural and man-made disasters not normally covered by fire insurance policies, such as earthquakes and floods. According to Lloyd’s City Risk Index, which assesses the amount of risk of loss in a particular city, Metro Manila has an average annual GDP of US$201.08 billion, and more than half of this amount, or $101.09 billion, is at risk of being lost in a natural catastrophe without any form of insurance coverage. Rellosa was PIRA Chairman when the association proposed the draft EO for the catastrophe insurance pool. The draft had been submitted to the Office of the President.

Insurance Commission Emmanuel Dooc has been vocally supportive of the establishment of such insurance pool. “Natural calamities have disrupted our social, environmental and economic development. Mitigating or reducing the risks will be key to reversing chain effects of disasters. However, individual capabilities and resources are not readily available to massively implement viable strategy options,” Dooc said. “Developing a financially sound and sustainable catastrophe insurance pool is just fitting and timely. Ultimately, this initiative reduces to a large extent the potential liabilities and risks on people and properties,” he added.

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COUNTRY OVERVIEW

Focusing on Game Changers What are the trends that will have lasting impact on the non-life insurance industry in the future? This and more were answered when top executives under PIRA came together for the 2nd PIRA Regional Dialogue at the New World Hotel in Makati City, Philippines. With the theme "Game Changers," the 2015 PIRA Regional Dialogue was an enlightening experience for industry leaders who wanted to have a peek into the future directions the insurance business is going. Deputy Insurance Commissioner Vida Chiong and Senator Richard Gordon were the eventâ&#x20AC;&#x2122;s keynote speakers who provided the tone for the morning and afternoon discussions, respectively. Ms. Chiong spoke about how insurers can be game changers in their own right while Gordon challenged participants to be game changers not only for their own businesses but for their country as well. Eight other speakers expounded on different gamechanging topics. Pravar Gautam, vice president for Asia of Scope Technology, talked about Telematics which blends computers and wireless technologies in order to tailor products like insurance to the needs of customers. Augusto Hidalgo, president of the National Reinsurance Corporation of the Philippines, spoke about analytics which looks into patterns from voluminous data to help executives

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improve their decision-making process. Jeremy Wall, managing director of JP Wall Consulting, presented the trends in insurance from the point of view of an actuary. Yen Chin, senior manager for Business Development of AIR Worldwide, meanwhile, gave a very interesting talk on the new approaches to modeling cyber risks, while Matthew Cua, founder and CEO of Sky Eye, showcased his unmanned aerial vehicles or drones which are now being used by insurers in other countries in evaluating risks and assessing claims. Jocelyn Pick, managing director of People Dynamics, spoke about how to manage millennials and provided a peek into the future of human resources management. Daniel Low Yew Hock, director of SNK Market Research Malaysia, talked about the online processing of motor insurance claims, and Dr. Neil Katkov, senior vice president of Celent Global Asian Financial Services Group, discussed the digitization of insurance which is already happening in developed countries. Then PIRA Chairman Michael Rellosa said this yearâ&#x20AC;&#x2122;s PIRA

KEYNOTE SPEAKER Senator Richard Gordon providedPIRA members with a challenge: Be a game changer for your country!

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For 2016, the PIRA Regional Dialogue will again have a powerhouse cast of speakers with worldclass insights and perspectives

Regional Dialogue was a preview of things to come for the industry. “The industry is going through a period of massive transformation. Merely 10 weeks from now, the entire Southeast Asia will be entering the era of ASEAN integration. No doubt we have to prepare our local companies for the changes this integration would bring. We have to make everybody ready to be regionally and globally competitive,” he said. Meanwhile, for 2016, the PIRA Regional Dialogue will have a theme One World, One Future and will be held on October 7 still at the New World Hotel in Makati City. This year's PIRA Chairman, Augusto P. Hidalgo, said a powerhouse cast of speakers has been assembled to provide the industry with world-class insights and perspectives. Oscar Lizardo, a scientist from the Project NOAH flood forecasting service. He will speak on the very interesting topic of Science to Survive -- How science can help insurers cope with change. Software expert Merimen will be presenting solutions on Customer Centricity -- How to create products that customers want. Merimen is expected to draw from its over 60 years of

RELIGIOUS APPROACH Selfconfessed drug users in Pasig undergo a moral recovery program.

combined experience in collaborative and information exchange platform for the insurance industry in teaching insurers how to focus more on their customers. And Ashish Jain from AIR Worldwide, a risk modeling expert, will talk about Beyond Shake and Wind -- The importance of sub-perils like liquefaction, tsunami and storm surge in managing risks in countries like the Philippines. The Singapore Tourism Board will be hosting the lunch for the conference and it will be presenting exciting prospects for insurers in Singapore. For the afternoon session, Department of Transportation Undersecretary Raoul Creencia will be providing the keynote on the Change We Want To See. He will be followed by Philippine Institute of Volcanology and Seismology Director Renato Solidum who will give an update on the feared Big One earthquake and how it will impact insurers. For the penultimate speaker of the day, Google Philippines country manager Kenneth Lingan will talk about Winning Customers in a Mobile-First Era. And finally, to end the conference with a bang, lawyer Jorge Brania, who heads the Insurance Commission's Anti-Money Laundering Division, will have a insightful presentation on Money Laundering and Insurance.

PIRA FACT BOOK 2016

SHARING THE VISION Philippine Climate Change Commission Vice Chairman Emmanuel de Guzman (3rd from right) lead participants of the UNEPPIRA event in flashing the 1.5 sign to show the limit to temperature rise as set forth in the Paris Agreement. Below, De Guzman poses with sponsors from PIRA, Willis Re, Swiss Re and SM Prime.

66 PIRA FACT BOOK 2016

INDUSTRY ISSUES

UN, PIRA work on climate change The country's non-life insurers are exploring ways on how to make Filipinos more resilient to climate change and natural disasters. PIRA Chairman Augusto Hidalgo told foreign delegates at a United Nations Environment Programme (UNEP) and PIRA event that Philippine insurers are actively pursuing efforts to coalesce with various stakeholders in order to make the local insurance industry ready for catastrophe risks brought by climate change. "We are aware of the need to engage the government and the international community in a continuing discussion on how we can make Filipinos more resilient to climate change and disasters," he said. PIRA organized a forum for foreign participants from the UN Framework Convention on Climate Change (UNFCCC) on â&#x20AC;&#x153;Financial instruments that address the risks of loss and damage associated with the adverse effects of climate change.â&#x20AC;? Butch Bacani of the UNEP Principles for Sustainable Insurance (PSI) said the event was held to stimulate actions that will help the insurance industry and its stakeholders strengthen their contribution to building climate and disasterresilient communities and economies, thereby supporting sustainable development. Among the local agencies that supported the event were the Climate Change Commission and the Insurance Commission, and one of the topics discussed was microinsurance.

The event was sponsored by Willis Re, Swiss Re and SM Prime. Climate Change Commission vice chairman Emmanuel de Guzman said insurers can help citizens prepare for financial challenges during natural disasters. By doing their fair share in addressing residual losses and damages, De Guzman said, insurers would help unburden the government, which usually has inadequate funds for disaster relief. The World Bank reported that the Philippine government retains most of its disaster risk because it relies heavily on annual contingency budget allocation for potential disaster events and post-disaster reallocations to finance its response efforts. One example, De Guzman said, is the National Disaster Risk Reduction and Management Fund, which was established under Republic Act 10121 to fund disaster and emergency response. The 2016 General Appropriations Act allocates of P38.9 billion to the fund. â&#x20AC;&#x153;This is not enough to help our citizens get back on their feet. The government can step in and

IRA FACT BOOK 2016

PIRA FACT BOOK 2016

UNDERSTANDING CLIMATE CHANGE Experts from diferent countries, including the Philippines, compare notes on their experiences with climate change. The objective was to understand climate change and find out how insurance companies can help address it.

reconstruct roads, bridges, and other damaged infrastructure, or offer assistance through the mechanisms of DSWD, PagIBIG, SSS, GSIS and other agencies, but it cannot on its own, reconstruct lives,” he pointed out. De Guzman said the CCC can collaborate with the insurance industry on a baseline policy study on risk, transfer, finance and insurance in the country that will examine gaps and propose solutions, including policy reforms. He said the CCC and the insurance industry also need to get more local government units to deploy weather-indexed insurance initiatives. He cited in particular the People’s Survival Fund (PSF), which finances adaptation measures at the local community level. The CCC official said establishing LGU ownership is key to

letting PSF grants broaden development of risk transfer instruments and risk financing mechanisms in a financially sustainable way. “In other words, a long-term coverage should be in place that would no longer require the assistance of the PSF,” he added. De Guzman also challenged the insurance industry to work on slow-onset impacts of climate change, which, he said, “many believe to be uninsurable.” Examples of slow-onset events are sea level rise, increasing temperatures, ocean acidification, salinization, land and forest degradation, loss of biodiversity and desertification.

PIRA FACT BOOK 2016

INDUSTRY LEADERS Ramon Dimacali (top left) and Mel Mallillin speak in front of the students of Asia Pacific College to inspire them to try insuance as a career after graduation. The two were joined by (from left) Jene Aliwalas, Ming Jacinto, Mitch Rellosa, Melinda Natividad and Dick Cabusao.

PIRA FACT BOOK 2016

INDUSTRY ISSUES

In search of fresh talents It seemed like it was only yesterday when Michael Rellosa, a fresh AB Economics graduate, was walking in Makati looking for a job. Frustrated that there weren't any vacancies, he lucked in on a tip given by a friend who worked for FGU, an insurance company owned by the Ayalas. He applied for it, was accepted for training, and was soon ushered into the world of non-life insurance. Now, Rellosa, already the president and chief operating office of Fortune General Insurance and chairman of the ASEAN Insurance Council, is urging fresh graduates to consider non-life insurance as an exciting career option. "Insurance is a very interesting and exciting profession," he said. "It is multifaceted and calls for people with analytical and critical minds. Unfortunately, people tend to associate insurance only with selling which is not entirely true." Because insurance is not as popular as banking, Rellosa said many executives who work in the industry right now entered it by accident. Melecio Mallillin is one good example. The former president of Charter Ping-An Insurance Company, which belongs to the Metrobank Group, started in San Miguel Corporation as an analyst after earning a political science degree. He was given P1,000 a month in San Miguel about 41 years ago which then was a princely sum. But despite the high pay, he was bored with his job. He got an offer from an insurance company, studied it carefully and eventually took it. The starting salary was P460 a month.

"My father, who was a tricycle driver, asked me after learning about my decision: 'Bobo ka ba?' (Are you stupid?) I just laughed. But I told him later that I saw a better future in insurance. And I was right," he remembers. Rellosa and Mallillin were guests at the PIRA Campus Tour held at the Asia Pacific College where available careers in the insurance industry were discussed. The two were joined by another industry leader -Ramon Dimacali -- who says he entered insurance only after serving as president of technology giant IBM Philippines. "I am not an insurance guy. "I am a technology person. But the mere fact that I am here is proof that technology people like you can excel in this field," he said. The president of FPG Insurance stressed the importance of insurance, noting that the economy will stop if there is no insurance. "No airplane will fly and no ship will sail or business deal transacted without

PIRA FACT BOOK 2016

PIRA CAMPUS TOUR IN DAVAO Chris Marquez does a selfie with the students of Ateneo de Davao who attended the PIRA Campus Tour. Above, students of University of Mindanao pose with PIRA resource speakers. The tour was made possible with the help of the Davao Insurers Club.

72 PIRA FACT BOOK 2016

insurance. You can say that insurance makes the world go round," he said. He cited the Tohoku Earthquake and Tsunami in Japan in 2011 where US$35 billion were paid by insurancecompanies in claims, or, in the local front, the great flood caused by tropical storm Ondoy in Metro Manila in 2009 where insurers shelled out US$230 million in claims or the devastation in the Visayas by super typhoon Yolanda in 2013 which caused insurers some US$300 million.

IN SEARCH OF RELEVANCE Davao Insurers Club president Ronald Rellosa tells Ateneo de Davao students to go into insurance if they are looking for relevance in life.

different lines of non-life insurance as well as the various careers in the industry that await them after graduation. She stressed that insurance is "the only industry that comes to you when you truly need help." Another PIRA executive, Christopher Marquez of Fortune General Insurance, meanwhile, gave the students tips on how to be attractive to employers. He said people with critical thinking, empathy, ability to work in a team, integrity and passion are always in demand in any industry and not just insurance.

"People don't really know it but it is in catastrophes that many get to appreciate the real value of insurance," he said. "They are However, he stressed that these traits are the ones the able to tell themselves, 'buti na lang insured sila. insurance industry develops in its executives. Hence, the industry is a good training ground for anyone who wants to " Meanwhile, PIRA also went to Davao City to bring its campus succeed in life. tour there. Close to 600 students from the two schools participated in the event co-organized by the Davao Insurers And finally, Januario Aliwalas of the Insurance Institute for Club (DIC). Asia and the Pacific presented to the students the SUITS or the Select Universities Insurance Training Scholarship, a twoPIRA's communications consultant Junep Ocampo told the month intensive training for future insurance managers that students that just like President Rodrigo Duterte, whose the IIAP offers. negative traits are the ones being highlighted in the media, there are a lot of good things in insurance that are not being Davao Insurers Club president Ronald Rellosa said there is a discussed about. big need for talents in the insurance business in Davao City where more than 40 non-life companies have branches. "I have Melinda Natividad, Bonds Division head of BPI/MS Insurance already talked with at least four branch managers here in talked about how insurance works and told them about the Davao and they are all excited to hire new graduates, " he said.

PIRA FACT BOOK 2016

22 PIRA FACT BOOK 2016 74

INDUSTRY ACTIVITIES

Networking on the fairway Work hard, play harder. This is the motto of many insurance executives. And for them, to be able to mix work and play as well as camaraderie and friendly competition makes for the ultimate experience. The PIRA Networking Golf offers such experience. Started three years ago, the tournament gathers top decision makers from the industry, both local and foreign, in the fairways of The Orchard Golf and Country Club in DasmariĂąas, Cavite. There, amidst the greeneries, these executives play for four hours, allowing them to relax and enjoy while getting ready for the annual PIRA convention. The golf tournament precedes the PIRA convention which will be again held at New World Hotel. Both events form part of the annual Insurance Consciousness Week. Tournament director Joel Libo-on says the System 36 tournament usually attracts more than 50 golfers who vie for the honor to be the overall champion of the annual contest. There are four divisions, namely A, B, C and Women's. Each division will have a Class Champion and first and second runners up. A grand champion is determined based on overall net score. Libo-on said several foreign executives have been regularly taking part in this annual tournament.

PIRA FACT BOOK 2016

LIFE GOES ON A survivor of super typhoon Yolanda plays basketball in a destroyed playground in Tacloban City

PIRAPIRA 76 FACTFACT BOOK BOOK 20162016 25

Philippine Insurers and Reinsurers Association

Non-Life I nsu r a n ce Fa c t B o o k Ap p e n d i x FACT BOOK 2016 77

Statistics Statistics

NON-LIFE INSURANCE INDUSTRY STATISTICS NON-LIFE INSURANCE INDUSTRY STATISTICS Direct Writing Companies, Including GSIS Direct Writing Companies, Including GSIS PREMIUMS ON PREMIUMS ON DIRECT BUSINESS DIRECT BUSINESS

In Million Pesos In Million Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation Marine Insurance & Aviation Motor Car Insurance Motor Car Insurance Others Others

45,435.43 45,435.43 15,155.16 15,155.16 4,570.47 4,570.47 14,128.75 14,128.75 11,581.05 11,581.05

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 13.37 13.37 15.20 15.20 (1.83) (1.83) 14.26 14.26 16.97 16.97

2012 2012 50,124.01 50,124.01 17,685.17 17,685.17 4,578.24 4,578.24 15,179.78 15,179.78 12,680.82 12,680.82

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 10.32 10.32 16.69 16.69 0.17 0.17 7.44 7.44 9.50 9.50

2013 2013 53,244.26 53,244.26 17,723.24 17,723.24 5,083.67 5,083.67 16,621.68 16,621.68 13,815.67 13,815.67

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 6.23 6.23 0.22 0.22 11.04 11.04 9.50 9.50 8.95 8.95

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 57,828.85 8.61 57,828.85 8.61 20,971.36 18.33 20,971.36 18.33 4,901.92 (3.58) 4,901.92 (3.58) 18,123.01 9.03 18,123.01 9.03 13,832.57 0.12 13,832.57 0.12 2014 2014

25% 25%

2015 Direct Premiums Production 2015 Direct Premiums Production Percentage Distribution by Line of Business

37% 37%

Fire Insurance Fire Insurance Marine Insurance & Aviation Marine Insurance & Aviation Motor Car Insurance Motor OthersCar Insurance Others

8,294.61 8,294.61 3,598.95 3,598.95 1,240.33 1,240.33 1,295.46 1,295.46 2,159.87 2,159.87

Marine Insurance & Aviation Marine Insurance & Aviation

Motor Car Insurance Motor Car Insurance

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 2.65 2.65 3.34 3.34 (7.32) (7.32) 37.84 37.84 (6.90) (6.90)

2012 2012 8,201.76 8,201.76 4,067.88 4,067.88 1,396.09 1,396.09 734.44 734.44 2,003.36 2,003.36

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year (1.12) (1.12) 13.03 13.03 12.56 12.56 (43.31) (43.31) (7.25) (7.25)

2013 2013 9,615.56 9,615.56 5,175.32 5,175.32 1,531.55 1,531.55 691.61 691.61 2,217.09 2,217.09

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 17.24 17.24 27.22 27.22 9.70 9.70 (5.83) (5.83) 10.67 10.67

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8,757.89 (8.92) 8,757.89 (8.92) 4,257.40 (17.74) 4,257.40 (17.74) 1,659.10 8.33 1,659.10 8.33 702.33 1.55 702.33 1.55 2,139.05 (3.52) 2,139.05 (3.52)

2014 2014

2015 2015 8,069.15 8,069.15 4,755.47 4,755.47 694.52 694.52 534.97 534.97 2,084.19 2,084.19

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year (7.86) (7.86) 11.70 11.70 (58.14) (58.14) (23.83) (23.83) (2.56) (2.56)

In Million Pesos In Million Pesos 2011 2011

Fire Insurance Fire Insurance

In Million Pesos In Million Pesos

GROSS GROSS PREMIUMS PREMIUMS TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation Marine Insurance & Aviation Motor Car Insurance Motor Car Insurance Others Others

8% 8% 30% 30%

2011 2011 TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation Marine Insurance & Aviation Motor Car Insurance Motor Car Insurance Others Others

66,614.23 66,614.23 24,710.54 24,710.54 5,590.73 5,590.73 19,740.03 19,740.03 16,572.93 16,572.93

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 15.19 15.19 17.83 17.83 14.05 14.05 8.92 8.92 19.81 19.81

Others Others

Percentage Distribution by Line of Business

PREMIUMS PREMIUMS ASSUMED ASSUMED

2015 2015

53,730.04 53,730.04 18,754.11 18,754.11 5,810.79 5,810.79 15,424.21 15,424.21 13,740.92 13,740.92

FACT BOOK 2016

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 11.57 11.57 12.72 12.72 (3.05) (3.05) 15.93 15.93 12.44 12.44

2012 2012 58,325.77 58,325.77 21,753.04 21,753.04 5,974.33 5,974.33 15,914.22 15,914.22 14,684.18 14,684.18

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8.55 8.55 15.99 15.99 2.81 2.81 3.18 3.18 6.86 6.86

2013 2013 62,859.82 62,859.82 22,898.56 22,898.56 6,615.22 6,615.22 17,313.28 17,313.28 16,032.76 16,032.76

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 7.77 7.77 5.27 5.27 10.73 10.73 8.79 8.79 9.18 9.18

2014 2014 66,586.74 66,586.74 25,228.76 25,228.76 6,561.02 6,561.02 18,825.34 18,825.34 15,971.62 15,971.62

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 5.93 5.93 10.18 10.18 (0.82) (0.82) 8.73 8.73 (0.38) (0.38)

2015 2015 74,683.38 74,683.38 29,466.02 29,466.02 6,285.25 6,285.25 20,275.00 20,275.00 18,657.12 18,657.12

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 12.16 12.16 16.80 16.80 (4.20) (4.20) 7.70 7.70 16.81 16.81

Gross Gross Premiums Premiums from from Direct Direct Writing Writing Companies Companies Including Including GSIS GSIS

30,000 30,000

29,466.02 29,466.02

InInMillion MillionPesos Pesos

25,000 25,000 20,000 20,000

25,228.76 25,228.76

22,898.56 22,898.56

21,753.04 21,753.04 18,754.11 18,754.11

15,000 15,000

2011 2011

PREMIUMS PREMIUMS CEDED CEDED

2012 2012 Fire Insurance Fire Insurance

22,564.02 22,564.02 11,215.96 11,215.96 3,332.89 3,332.89 1,842.62 1,842.62 6,172.55 6,172.55

PREMIUMS PREMIUMS RETROCEDED RETROCEDED

4,577.12 4,577.12 2,356.59 2,356.59 889.18 889.18 291.84 291.84 1,039.51 1,039.51

NET NET PREMIUMS PREMIUMS

6,285.25 6,285.25

2013 2014 2015 2013 2014 2015 Marine Insurance & Aviation Motor Car Insurance Others Marine Insurance & Aviation Motor Car Insurance Others

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 18.64 18.64 21.14 21.14 5.74 5.74 (5.70) (5.70) 32.62 32.62

2012 2012 24,414.06 24,414.06 13,510.61 13,510.61 2,964.62 2,964.62 1,840.68 1,840.68 6,098.16 6,098.16

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8.20 8.20 20.46 20.46 (11.05) (11.05) (0.11) (0.11) (1.21) (1.21)

2013 2013 26,789.82 26,789.82 14,200.56 14,200.56 3,732.84 3,732.84 1,534.22 1,534.22 7,322.20 7,322.20

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8.86 8.86 20.47 20.47 (4.14) (4.14) 36.26 36.26 (12.76) (12.76)

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 9.73 9.73 5.11 5.11 25.91 25.91 (16.65) (16.65) 20.07 20.07

29,163.33 29,163.33 17,106.87 17,106.87 3,578.25 3,578.25 2,090.60 2,090.60 6,387.60 6,387.60

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 18.76 18.76 39.46 39.46 (9.60) (9.60) (51.06) (51.06) (3.22) (3.22)

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 4,983.18 (19.74) 4,983.18 (19.74) 2,978.46 (25.92) 2,978.46 (25.92) 1,088.24 11.33 1,088.24 11.33 (55.34) (545.91) (55.34) 971.82 (545.91) (18.91) 971.82 (18.91)

2014 2014

2015 2015 31,694.42 31,694.42 18,450.51 18,450.51 3,871.54 3,871.54 2,040.22 2,040.22 7,332.16 7,332.16

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8.68 8.68 7.85 7.85 8.20 8.20 (2.41) (2.41) 14.79 14.79

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year (14.46) (14.46) (5.57) (5.57) (4.94) (4.94) 3,229.23 3,229.23 (45.61) (45.61)

2012 2012 5,227.99 5,227.99 2,883.03 2,883.03 1,081.31 1,081.31 25.36 25.36 1,238.29 1,238.29

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 14.22 14.22 22.34 22.34 21.61 21.61 (91.31) (91.31) 19.12 19.12

2013 2013 6,208.92 6,208.92 4,020.63 4,020.63 977.50 977.50 12.41 12.41 1,198.39 1,198.39

2014 2014

2015 2015 4,628.98 4,628.98 3,468.96 3,468.96 410.60 410.60 56.25 56.25 693.18 693.18

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year (7.11) (7.11) 16.47 16.47 (62.27) (62.27) (201.64) (201.64) (28.67) (28.67)

In Million Pesos In Million Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation MarineCar Insurance & Aviation Motor Insurance Motor Car Insurance Others Others

6,561.02 6,561.02

In Million Pesos In Million Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation MarineCar Insurance & Aviation Motor Insurance Motor Car Insurance Others Others

15,971.62 15,971.62

In Million Pesos In Million Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Insurance & Aviation MarineCar Insurance & Aviation Motor Insurance Motor Car Insurance Others Others

6,615.22 6,615.22

5,974.33 5,974.33

5,810.79 5,810.79

18,657.12 18,657.12

14,684.18 14,684.18

13,740.92 13,740.92

10,000 10,000 5,000 5,000 0 0

17,313.28 17,313.28 16,032.76 16,032.76

15,914.22 15,914.22

15,424.21 15,424.21

20,275.00 20,275.00

18,825.34 18,825.34

26,588.90 26,588.90 5,181.56 5,181.56 1,588.72 1,588.72 13,289.74 13,289.74 6,528.87 6,528.87

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 11.77 11.77 6.09 6.09 (16.67) (16.67) 17.17 17.17 15.44 15.44

2012 2012 28,683.72 28,683.72 5,359.41 5,359.41 1,928.40 1,928.40 14,048.18 14,048.18 7,347.73 7,347.73

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 7.88 7.88 3.43 3.43 21.38 21.38 5.71 5.71 12.54 12.54

2013 2013 29,861.08 29,861.08 4,677.37 4,677.37 1,904.88 1,904.88 15,766.65 15,766.65 7,512.18 7,512.18

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 4.10 4.10 (12.73) (12.73) (1.22) (1.22) 12.23 12.23 2.24 2.24

2014 2014 32,440.23 32,440.23 5,143.42 5,143.42 1,894.53 1,894.53 16,790.08 16,790.08 8,612.20 8,612.20

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 8.64 8.64 9.96 9.96 (0.54) (0.54) 6.49 6.49 14.64 14.64

2015 2015 38,359.98 38,359.98 7,546.55 7,546.55 2,003.12 2,003.12 18,178.53 18,178.53 10,631.78 10,631.78

% INC/(DEC) % INC/(DEC) Over Previous Over Year Previous Year 18.25 18.25 46.72 46.72 5.73 5.73 8.27 8.27 23.45 23.45

FACT BOOK 2016 79

PREMIUMS EARNED TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos 2011

% INC/(DEC) Over Previous Year

2012

% INC/(DEC) Over Previous Year

24,743.18 4,548.53 1,577.85 12,535.90 6,080.91

8.07 (9.43) (14.41) 17.09 14.23

27,706.51 5,415.63 1,904.24 13,596.92 6,789.72

11.98 19.06 20.69 8.46 11.66

2012

% INC/(DEC) Over Previous Year

LOSSES INCURRED

2013 29,108.16 4,822.16 1,736.66 15,170.90 7,378.44

% INC/(DEC) Over Previous Year 5.06 (10.96) (8.80) 11.58 8.67

2014 31,423.63 4,986.46 1,973.10 16,169.88 8,294.19

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

7.95 3.41 13.61 6.58 12.41

35,516.54 6,279.08 2,015.88 17,214.78 10,006.79

13.02 25.92 2.17 6.46 20.65

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

(17.89) (42.05) 6.53 1.15 (25.63)

12,907.73 2,061.73 543.44 7,893.04 2,409.53

2.59 (26.80) (10.88) 16.11 2.22

In Million Pesos

INCURRED LOSS RATIO % TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

% INC/(DEC) Over Previous Year

9,802.75 2,414.32 612.91 5,299.31 1,476.20

12.15 17.52 32.12 12.35 (1.97)

11,071.92 2,766.45 738.83 5,454.27 2,112.36

12.95 14.59 20.55 2.92 43.09

2013 15,323.53 4,860.84 572.40 6,720.62 3,169.67

% INC/(DEC) Over Previous Year 38.40 75.71 (22.53) 23.22 50.05

2014 12,581.47 2,816.65 609.79 6,797.80 2,357.22

LOSS RATIO %

In Million Pesos 2011

2012

2013

2014

2015

39.62 53.08 38.84 42.27 24.28

39.96 51.08 38.80 40.11 31.11

52.64 100.80 32.96 44.30 42.96

40.04 56.49 30.91 42.04 28.42

36.34 32.83 26.96 45.85 24.08

60 50 40 30 20 10 0

Percentage

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2011

LOSS RATIO % (By Line of Business)

52.64 40.04 39.62

2011

39.96 36.34

2012

60 50 40 30 20 10 0

2011

2012

Fire Insurance

Marine Insurance & Aviation

FACT BOOK 2016

2013

2014

Motor Car Insurance

2015

Others

2013 2014

2015

FINANCIAL HIGHLIGHTS Assets Liabilities Networth

In Million Pesos 2011

% INC/(DEC) Over Previous Year

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

146,458.35 71,358.77 75,099.57

3.72 0.23 7.27

169,753.54 86,449.29 83,304.25

15.91 21.15 10.93

194,303.27 115,564.50 78,738.77

14.46 33.68 (5.48)

194,529.68 109,182.54 85,347.14

0.12 (5.52) 8.39

196,398.38 106,413.69 89,984.68

0.96 (2.54) 5.43

2012

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

% INC/(DEC) Over Previous Year

19.63 13.98 (12.97) 23.75 36.41

57,767,044.16 29,496,736.42 2,671,376.25 2,658,982.37 22,939,949.11

28.60 62.40 (39.81) 28.74 13.27

67,715,404.33 43,223,801.67 3,607,372.20 2,705,987.35 18,178,243.11

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

(13.75) 0.65 (37.06) 24.37 (22.83)

21,279,222.91 8,923,944.98 1,433,718.34 2,527,587.04 8,393,972.56

0.02 16.72 1.38 23.63 (17.48)

29,797,814.32 12,182,728.09 1,422,506.44 2,422,395.32 13,770,184.48

RISKS WRITTEN ON DIRECT BUSINESS

In Million Pesos % INC/(DEC) Over Previous Year

2011 TOTAL 37,550,935.38 Fire Insurance 15,935,153.53 Marine Insurance & Aviation 5,099,754.41 Motor Car Insurance 1,668,981.62 Others 14,847,045.81

NET RISKS WRITTEN TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

54.88 13.61 16.58 15.82 237.12

44,920,384.99 18,163,399.77 4,438,403.29 2,065,319.34 20,253,262.59

2015

17.22 90,028,806.19 46.54 55,791,194.53 35.04 7,757,507.42 1.77 5,379,431.68 (20.76) 21,100,672.57

% INC/(DEC) Over Previous Year 32.95 29.08 115.05 98.80 16.08

In Million Pesos 2011

% INC/(DEC) Over Previous Year

24,667,630.17 7,595,756.06 2,246,939.92 1,643,930.39 13,181,003.80

106.31 30.81 5.07 36.21 370.01

2012 21,275,959.29 7,645,422.09 1,414,225.27 2,044,552.48 10,171,759.45

% INC/(DEC) Over Previous Year

2015

40.03 46,057,346.17 36.52 24,169,241.60 (0.78) 2,014,088.89 (4.16) 5,130,337.00 64.05 14,743,678.68

% INC/(DEC) Over Previous Year 54.57 98.39 41.59 111.79 7.07

NETWORTH

Distribution, By Companies Including GSIS

As of Dec. 31, 2015

3% 2%

10B AND Up 5B to 9.99B 1B to 4.99B 500M to 999M 100M to 499M

- 2 - 1 - 9 - 32 - 25

Companies Company Companies Companies Companies

TOTAL P86,267.67 - 69 Companies

13% 46% 36%

FACT BOOK 2016 81

OPERATING RESULTS

In Million Pesos

Total Premiums on Direct Business Total Reinsurance Assumed Total Reinsurance Cession Premiums Earned Losses Incurred Total Underwriting Income Net Underwriting Income Total Investments Income Net Income/(Loss) Before Income

2011

% INC/(DEC) Over Previous Year

2012

45,435.43 8,294.61 27,141.14 24,743.18 9,802.75 27,898.21 8,339.16 2,743.47 4,727.89

13.37 2.65 11.37 8.07 12.15 8.62 4.26 1.12 4.57

50,124.01 8,201.76 29,642.05 27,706.51 11,071.92 30,927.71 8,931.68 2,781.59 2,936.18

% INC/(DEC) Over Previous Year 10.32 (1.12) 9.21 11.98 12.95 10.86 7.11 1.39 (37.90)

2013 53,244.26 9,615.56 32,998.74 29,108.16 15,323.53 32,553.46 6,045.26 2,780.83 3,237.89

% INC/(DEC) Over Previous Year 6.23 17.24 11.32 5.06 38.40 5.26 (32.32) (0.03) 10.28

2014 57,828.85 8,757.89 34,146.51 31,423.63 12,581.47 35,099.92 10,001.63 2,720.23 3,963.18

% INC/(DEC) Over Previous Year 8.61 (8.92) 3.48 7.95 (17.89) 7.82 65.45 (2.18) 22.40

2015 66,614.23 8,069.15 36,323.41 35,516.54 12,907.73 39,572.43 14,279.95 3,941.78 5,650.97

% INC/(DEC) Over Previous Year 15.19 (7.86) 6.38 13.02 2.59 12.74 42.78 44.91 42.59

NON-LIFE INSURANCE INDUSTRY STATISTICS Direct Writing Companies, Excluding GSIS PREMIUMS ON DIRECT BUSINESS TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

In Million Pesos 2011

% INC/(DEC) Over Previous Year

2012

% INC/(DEC) Over Previous Year

41,349.66 12,406.91 4,202.28 13,507.44 11,233.03

15.87 17.97 9.73 14.57 17.63

46,442.19 15,091.39 4,335.20 14,599.98 12,415.62

12.32 21.64 3.16 8.09 10.53

2013 49,358.44 15,306.64 4,920.47 16,015.15 13,116.19

% INC/(DEC) Over Previous Year 6.28 1.43 13.50 9.69 5.64

2014 54,377.49 18,592.65 4,704.16 17,563.56 13,517.12

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

10.17 21.47 (4.40) 9.67 3.06

62,360.39 21,567.74 5,377.49 19,386.06 16,029.11

14.68 16.00 14.31 10.38 18.58

26%

2015 Direct Premiums Production

Others

Percentage Distribution by Line of Business

Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

34%

Fire Insurance

Marine Insurance & Aviation

FACT BOOK 2016

31%

Motor Car Insurance

PREMIUMS ASSUMED

In Million Pesos % INC/(DEC) Over Previous Year

2011 8,288.83 3,594.86 1,240.16 1,295.46 2,158.36

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

GROSS PREMIUMS

2.63 3.26 (7.25) 37.84 (6.90)

2012 8,190.25 4,061.59 1,396.06 734.44 1,998.17

% INC/(DEC) Over Previous Year

2013

(1.19) 12.98 12.57 (43.31) (7.42)

9,605.59 5,175.32 1,531.52 691.61 2,207.15

% INC/(DEC) Over Previous Year

2014

17.28 27.42 9.70 (5.83) 10.46

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

(8.83) (17.74) 8.33 1.55 (3.09)

8,063.92 4,755.47 694.52 534.97 2,078.96

(7.92) 11.70 (58.14) (23.83) (2.81)

% INC/(DEC) Over Previous Year

2015

% INC/(DEC) Over Previous Year

7.07 11.56 (1.38) 9.33 2.17

70,424.31 26,323.22 6,072.01 19,921.02 18,108.06

11.54 15.20 (4.58) 9.06 15.66

8,757.89 4,257.40 1,659.10 702.33 2,139.05

In Million Pesos

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2011

% INC/(DEC) Over Previous Year

2012

% INC/(DEC) Over Previous Year

49,638.49 16,001.78 5,442.44 14,802.89 13,391.39

13.43 14.31 5.34 16.29 12.84

54,632.44 19,152.97 5,731.26 15,334.42 14,413.79

10.06 19.69 5.31 3.59 7.63

2013 58,964.04 20,481.96 6,451.99 16,706.75 15,323.33

% INC/(DEC) Over Previous Year 7.93 6.94 12.58 8.95 6.31

2014 63,135.38 22,850.05 6,363.26 18,265.89 15,656.17

Gross Premiums from Direct Writing Companies Excluding GSIS 30,000 26,323.22

25,000 22,850.05

20,000 15,000

20,481.96

19,152.97

19,921.02 18,265.89

16,706.75

16,001.77 14,802.89

15,334.41 13,391.38

15,656.17

15,323.33

14,413.79

18,108.06

10,000 5,731.25

5,442.43

6,451.99

6,363.26

6,072.01

In Million Pesos

5,000 0 2011

2012 Fire Insurance

2013

Marine Insurance & Aviation

2014 Motor Car Insurance

2015 Others

FACT BOOK 2016 83

PREMIUMS PREMIUMS CEDED CEDED

In In Million Million Pesos Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

20,173.08 20,173.08 9,426.54 9,426.54 3,156.88 3,156.88 1,541.87 1,541.87 6,047.79 6,047.79

PREMIUMS PREMIUMS RETROCEDED RETROCEDED

4,577.12 4,577.12 2,356.59 2,356.59 889.18 889.18 291.84 291.84 1,039.51 1,039.51

NET NET PREMIUMS PREMIUMS

22,190.30 22,190.30 11,746.05 11,746.05 2,914.51 2,914.51 1,543.87 1,543.87 5,985.87 5,985.87

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.00 10.00 24.61 24.61 (7.68) (7.68) 0.13 0.13 (1.02) (1.02)

2013 2013 24,438.86 24,438.86 12,562.59 12,562.59 3,646.94 3,646.94 1,337.99 1,337.99 6,891.34 6,891.34

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.13 10.13 6.95 6.95 25.13 25.13 (13.34) (13.34) 15.13 15.13

2014 2014 26,998.88 26,998.88 15,224.63 15,224.63 3,452.36 3,452.36 1,988.38 1,988.38 6,333.50 6,333.50

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.48 10.48 21.19 21.19 (5.34) (5.34) 48.61 48.61 (8.09) (8.09)

2015 2015 30,503.14 30,503.14 17,421.56 17,421.56 3,890.92 3,890.92 1,901.62 1,901.62 7,289.03 7,289.03

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 12.98 12.98 14.43 14.43 12.70 12.70 (4.36) (4.36) 15.09 15.09

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year (14.46) (14.46) (5.57) (5.57) (4.94) (4.94) 3,229.23 3,229.23 (45.61) (45.61)

2012 2012 5,227.99 5,227.99 2,883.03 2,883.03 1,081.31 1,081.31 25.36 25.36 1,238.29 1,238.29

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 14.22 14.22 22.34 22.34 21.61 21.61 (91.31) (91.31) 19.12 19.12

2013 2013 6,208.92 6,208.92 4,020.63 4,020.63 977.50 977.50 12.41 12.41 1,198.39 1,198.39

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 18.76 18.76 39.46 39.46 (9.60) (9.60) (51.06) (51.06) (3.22) (3.22)

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 4,983.18 (19.74) 4,983.18 (19.74) 2,978.46 (25.92) 2,978.46 (25.92) 1,088.24 11.33 1,088.24 11.33 (55.34) (545.91) (55.34) (545.91) 971.82 (18.91) 971.82 (18.91) 2014 2014

2015 2015 4,628.98 4,628.98 3,468.96 3,468.96 410.60 410.60 56.25 56.25 693.18 693.18

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year (7.11) (7.11) 16.47 16.47 (62.27) (62.27) (201.64) (201.64) (28.67) (28.67)

In In Million Million Pesos Pesos 2011 2011

TOTAL TOTAL Fire Fire Insurance Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

24,888.29 24,888.29 4,218.65 4,218.65 1,396.37 1,396.37 12,969.18 12,969.18 6,304.09 6,304.09

PREMIUMS PREMIUMS EARNED EARNED

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 14.72 14.72 17.47 17.47 1.50 1.50 15.76 15.76 14.12 14.12

2012 2012 27,214.15 27,214.15 4,523.90 4,523.90 1,735.44 1,735.44 13,765.19 13,765.19 7,189.64 7,189.64

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 9.35 9.35 7.24 7.24 24.28 24.28 6.14 6.14 14.05 14.05

2013 2013 28,316.25 28,316.25 3,898.74 3,898.74 1,827.55 1,827.55 15,356.35 15,356.35 7,233.61 7,233.61

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 4.05 4.05 (13.82) (13.82) 5.31 5.31 11.56 11.56 0.61 0.61

2014 2014 31,153.32 31,153.32 4,646.97 4,646.97 1,822.65 1,822.65 16,332.84 16,332.84 8,350.86 8,350.86

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.02 10.02 19.19 19.19 (0.27) (0.27) 6.36 6.36 15.45 15.45

2015 2015 35,292.19 35,292.19 5,432.70 5,432.70 1,770.48 1,770.48 17,963.15 17,963.15 10,125.85 10,125.85

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 13.29 13.29 16.91 16.91 (2.86) (2.86) 9.98 9.98 21.26 21.26

In In Million Million Pesos Pesos 2011 2011

TOTAL TOTAL Fire Fire Insurance Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

23,321.90 23,321.90 3,784.12 3,784.12 1,400.73 1,400.73 12,281.98 12,281.98 5,855.07 5,855.07

LOSSES LOSSES INCURRED INCURRED

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 11.43 11.43 (2.78) (2.78) 6.71 6.71 15.88 15.88 14.24 14.24

2012 2012 26,009.03 26,009.03 4,337.21 4,337.21 1,704.93 1,704.93 13,332.87 13,332.87 6,634.01 6,634.01

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 11.52 11.52 14.62 14.62 21.72 21.72 8.56 8.56 13.30 13.30

2013 2013 27,345.42 27,345.42 3,947.68 3,947.68 1,628.47 1,628.47 14,634.78 14,634.78 7,134.49 7,134.49

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 5.14 5.14 (8.98) (8.98) (4.48) (4.48) 9.76 9.76 7.54 7.54

2014 2014 30,121.92 30,121.92 4,396.85 4,396.85 1,909.58 1,909.58 15,788.23 15,788.23 8,027.25 8,027.25

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.15 10.15 11.38 11.38 17.26 17.26 7.88 7.88 12.51 12.51

2015 2015 33,240.73 33,240.73 4,870.87 4,870.87 1,785.80 1,785.80 17,031.56 17,031.56 9,552.50 9,552.50

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 10.35 10.35 10.78 10.78 (6.48) (6.48) 7.88 7.88 19.00 19.00

In In Million Million Pesos Pesos 2011 2011

TOTAL TOTAL Fire Fire Insurance Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

2012 2012

In In Million Million Pesos Pesos 2011 2011

TOTAL TOTAL Fire Insurance Fire Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 20.68 20.68 19.15 19.15 10.55 10.55 1.62 1.62 36.45 36.45

9,301.79 9,301.79 2,109.12 2,109.12 512.47 512.47 5,290.07 5,290.07 1,390.13 1,390.13

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 13.45 13.45 21.24 21.24 15.88 15.88 12.92 12.92 4.30 4.30

FACT BOOK 2016

2012 2012 10,421.45 10,421.45 2,699.71 2,699.71 702.27 702.27 5,354.28 5,354.28 1,665.19 1,665.19

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 12.04 12.04 28.00 28.00 37.04 37.04 1.21 1.21 19.79 19.79

2013 2013 13,569.17 13,569.17 3,815.57 3,815.57 482.43 482.43 6,488.28 6,488.28 2,782.90 2,782.90

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 30.20 30.20 41.33 41.33 (31.30) (31.30) 21.18 21.18 67.12 67.12

2014 2014 11,786.61 11,786.61 2,230.16 2,230.16 582.17 582.17 6,748.39 6,748.39 2,225.88 2,225.88

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year (13.14) (13.14) (41.55) (41.55) 20.67 20.67 4.01 4.01 (20.02) (20.02)

2015 2015 12,924.05 12,924.05 2,255.62 2,255.62 537.40 537.40 7,758.32 7,758.32 2,372.71 2,372.71

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 9.65 9.65 1.14 1.14 (7.69) (7.69) 14.97 14.97 6.60 6.60

INCURRED INCURRED LOSS LOSS RATIO RATIO %%

In In Million Million Pesos Pesos 2012 2012

2013 2013

2014 2014

2015 2015

39.88 39.88 55.74 55.74 36.59 36.59 43.07 43.07 23.74 23.74

40.07 40.07 62.25 62.25 41.19 41.19 40.16 40.16 25.10 25.10

49.62 49.62 96.65 96.65 29.62 29.62 44.33 44.33 39.01 39.01

39.13 39.13 50.72 50.72 30.49 30.49 42.74 42.74 27.73 27.73

38.88 38.88 46.31 46.31 30.09 30.09 45.55 45.55 24.84 24.84

Percentage Percentage

TOTAL TOTAL Fire Insurance Fire Insurance Marine Marine Insurance Insurance && Aviation Aviation Motor Car Motor Car Insurance Insurance Others Others

2011 2011

LOSS LOSS RATIO RATIO %%

LOSS LOSS RATIO RATIO %% (By (By Line Line of of Business) Business)

60 60 50 50 40 40 30 30 20 20 10 10 00

49.62 49.62 39.88 39.88

2011 2011

40.07 40.07

39.13 39.13

2012 2012

2013 2013 2014 2014

38.88 38.88

2015 2015

60 60 50 50 40 40 30 30 20 20 10 10 00 2011 2011

2012 2012

Fire Fire Insurance Insurance

Marine Marine Insurance Insurance && Aviation Aviation

FINANCIAL FINANCIAL HIGHLIGHTS HIGHLIGHTS

2013 2013

2015 2015

Motor Motor Car Car Insurance Insurance

Others Others

In In Million Million Pesos Pesos

113,235.73 113,235.73 60,927.64 60,927.64 52,308.08 52,308.08

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 12.91 12.91 15.43 15.43 10.12 10.12

INC/(DEC) %% INC/(DEC) Over Previous 2012 2012 Over Year Previous Year TOTAL 37,550,935.38 54.88 44,920,384.99 44,920,384.99 TOTAL 37,550,935.38 54.88 Fire Insurance 15,935,153.53 13.61 18,163,399.77 Fire Insurance 15,935,153.53 13.61 18,163,399.77 Marine Insurance & Aviation 5,099,754.41 16.58 4,438,403.29 Marine Insurance & Aviation 5,099,754.41 16.58 4,438,403.29 Motor Car Insurance 1,668,981.62 15.82 2,065,319.34 Motor Car Insurance 1,668,981.62 15.82 2,065,319.34 Others 14,847,045.81 237.12 20,253,262.59 Others 14,847,045.81 237.12 20,253,262.59

INC/(DEC) %% INC/(DEC) Over Previous Over Year Previous Year 19.63 19.63 13.98 13.98 (12.97) (12.97) 23.75 23.75 36.41 36.41

2011 2011 Assets Assets Liabilities Liabilities Networth Networth

2014 2014

100,284.36 100,284.36 52,782.05 52,782.05 47,502.31 47,502.31

RISKS WRITTEN WRITTEN ON ON RISKS DIRECT BUSINESS BUSINESS DIRECT

%% INC/(DEC) INC/(DEC) Over Previous Over Year Previous Year 4.26 4.26 (0.38) (0.38) 9.95 9.95

2012 2012

2013 2013 130,364.41 130,364.41 82,934.34 82,934.34 47,430.07 47,430.07

INC/(DEC) %% INC/(DEC) Over Previous Over Year Previous Year 15.13 15.13 36.12 36.12 (9.33) (9.33)

%% INC/(DEC) INC/(DEC) Over Previous 2015 Over Year Previous 2015 Year 10.30 151,820.15 10.30 151,820.15 4.14 89,430.14 4.14 89,430.14 21.08 62,390.01 21.08 62,390.01

%% INC/(DEC) INC/(DEC) Over Previous Over Previous Year Year 5.58 5.58 3.54 3.54 8.64 8.64

INC/(DEC) INC/(DEC) %% INC/(DEC) %% INC/(DEC) Over Previous Over Previous 2014 2015 Over Year Previous Over Year Previous 2014 2015 Year Year 28.60 66,586,032.49 66,586,032.49 15.27 88,952,448.35 88,952,448.35 28.60 15.27 62.40 42,361,140.61 43.61 54,990,088.24 62.40 42,361,140.61 43.61 54,990,088.24 (39.81) 3,528,794.57 32.10 7,701,648.38 (39.81) 3,528,794.57 32.10 7,701,648.38 28.74 2,606,012.98 (1.99) 5,297,636.72 28.74 2,606,012.98 (1.99) 5,297,636.72 13.27 18,090,084.33 (21.14) 20,963,075.02 20,963,075.02 13.27 18,090,084.33 (21.14)

INC/(DEC) %% INC/(DEC) Over Previous Over Year Previous Year 33.59 33.59 29.81 29.81 118.25 118.25 103.29 103.29 15.88 15.88

2014 2014 143,794.90 143,794.90 86,368.56 86,368.56 57,426.34 57,426.34

In In Million Million Pesos Pesos 2011 2011

2013 2013 57,767,044.16 57,767,044.16 29,496,736.42 29,496,736.42 2,671,376.25 2,671,376.25 2,658,982.37 2,658,982.37 22,939,949.11 22,939,949.11

FACT BOOK 2016 85

NET RISKS WRITTEN

In Million Pesos

TOTAL Fire Insurance Marine Insurance & Aviation Motor Car Insurance Others

2011

% INC/(DEC) Over Previous Year

24,667,630.17 7,595,756.06 2,246,939.92 1,643,930.39 13,181,003.80

106.31 30.81 5.07 36.21 370.01

2012 21,275,959.29 7,645,422.09 1,414,225.27 2,044,552.48 10,171,759.45

% INC/(DEC) Over Previous Year

2013

% INC/(DEC) Over Previous Year

2014

(13.75) 0.65 (37.06) 24.37 (22.83)

21,279,222.91 8,923,944.98 1,433,718.34 2,527,587.04 8,393,972.56

0.02 16.72 1.38 23.63 (17.48)

29,226,562.15 11,783,934.96 1,384,008.70 2,372,408.13 13,686,210.36

Distribution, By Companies Excluding GSIS

37%

% INC/(DEC) Over Previous Year

2015

37.35 45,413,690.24 32.05 23,735,462.62 (3.47) 1,987,416.55 (6.14) 5,080,227.72 63.05 14,610,583.36

10B AND Up 5B to 9.99B 1B to 4.99B 500M to 999M 100M to 499M

NETWORTH

As of Dec. 31, 2015

% INC/(DEC) Over Previous Year

- 1 - 1 - 9 - 32 - 25

55.38 101.42 43.60 114.14 6.75

Company Company Companies Companies Companies

TOTAL P62,390.01 - 68 Companies

13% 47%

OPERATING RESULTS

In Million Pesos 2011

% INC/(DEC) Over Previous Year

41,349.66 8,288.83 24,750.20 23,321.90 9,301.79 26,221.39 7,680.50 2,435.27 3,183.86

FACT BOOK 2016

15.87 2.63 12.16 11.43 13.45 11.36 4.12 (0.58) (7.70)

2012 46,442.19 8,190.25 27,418.29 26,009.03 10,421.45 28,913.91 8,170.26 2,439.43 2,397.45

% INC/(DEC) Over Previous Year 12.32 (1.19) 10.78 11.52 12.04 10.27 6.38 0.17 (24.70)

2013 49,358.44 9,605.59 30,647.79 27,345.42 13,569.17 30,470.09 6,148.80 2,285.22 938.91

% INC/(DEC) Over Previous Year 6.28 17.28 11.78 5.14 30.20 5.38 (24.74) (6.32) (60.84)

2014 54,377.49 8,757.89 31,982.06 30,121.92 11,786.61 33,567.67 9,562.59 2,083.26 2,268.65

% INC/(DEC) Over Previous Year 10.17 (8.83) 4.35 10.15 (13.14) 10.17 55.52 (8.84) 141.63

2015 62,360.39 8,063.92 35,132.13 33,240.73 12,924.05 37,040.94 11,733.37 3,394.36 3,259.83

% INC/(DEC) Over Previous Year 14.68 (7.92) 9.85 10.35 9.65 10.35 22.70 62.94 43.69

PIRA MEMBERS AIG PHILIPPINES INSURANCE, INC. 47th Floor, PBCOM Tower 6795 Ayala Avenue cor. V.A. Rufino Street, Makati City Tel. No/s. 815-3000; 878-5453; 878-5552 Fax Nos. 815-3710; 878-5450; 878-5594/95 ALLIEDBANKERS INSURANCE CORP. 17th Floor, Federal Tower Condominium Dasmarinas Street, cor. Muelle de Binondo, Binondo, Manila Tel. No/s.243-0077; 245-2886 Fax No. 241-2549 ALPHA INSURANCE & SURETY CO., INC. 4th & 5th Floors, Alpha Insurance Centre, No. 1025 San Marcelino Street, Ermita, Manila Tel. No/s. 525-1301 Fax No. 404-0320; 522-6131 ARMED FORCES & POLICE GENERAL INSURANCE CORP. (AFP GEN. INS. CORP.) AFP GIC Building, Col. B. Serrano Road, cor. EDSA, Camp Aguinaldo, Quezon City Tel. No/s. 911-4676; 421-2286; 911-9369; 911-9888 loc.316 Fax No. 913-4358; 911-3149 info@afpgen.com ASIA INSURANCE (PHILIPPINES) CORP. 15th Floor, Tytana Plaza Bldg., Plaza Lorenzo Ruiz, Binondo, Manila Tel. No/s. 241-5201; 845-3223; 243-3213; 243-3219 Fax No. 241-6257; 243-3216; 888-2309 aipc@asiains.com.ph ASIA UNITED INSURANCE, INC. Room 777, 7th Floor BPI Office Condominium, Plaza Cervantez, Binondo, Manila Tel. No/s. 242-1688 loc. 108 Fax No. 245-3255 ASIAN LIFE & GENERAL ASSURANCE CORP. Ground Floor, to 3rd Floor, Morning Star Center, 347 Sen. Gil Puyat Avenue, 1200 Makati City Tel. No/s. 890-1758 Fax No. 895-8519 & 895-8524 E-mail: helpdesk@asianlife.com.ph

BANKERS ASSURANCE CORP. Room 604 Doña Felisa Syjuco Bldg. 1872 Remedios Street cor. Taft Ave. 1004 Malate Manila Tel. No/s. 244-7270; 241-2478; 567-4678; 241-2739; 5674675; 242-8888 loc.290 Fax No. 567-4675; 567-4676; 241-2449; 241-3155; 5674675; 242-2222; 241-2750 BPI/MS INSURANCE CORP. 11th, 14th & 16th Floor, Ayala Life-FGU Center 6811 Ayala Avenue, Makati City Tel. No/s. 840-90-00 Fax No. 840-95-99 CARD PIONEER MICROINSURANCE INC. (formerly: Pioneer Asia Ins. Corp.) 3rd Floor, Pioneer House – Makati 108 Paseo de Roxas, Legaspi Vill., Makati City Tel. No/s. 812-7777 Fax No. 817-1461 CENTENNIAL GUARANTEE ASSURANCE CORP. 12th Floor, The World Centre Building 330 Sen. Gil Puyat Extension Makati City Tel. No/s. 811-2272; 710-5121; 401-3586 Fax No. 811-4544; 864-0987 CHARTER PING AN INSURANCE CORP. Ground Floor, Skyland Plaza Sen Gil Puyat Avenue, Makati City Tel. No/s. 580-6800 Fax No. 842-1220 CIBELES INSURANCE CORP. 6th Floor, State Centre Building 333 Juan Luna Street Binondo, Manila Tel. No/s. 242-1631 to 40 Fax No. 242-0718 CLIMBS LIFE AND GENERAL INSURANCE COOPERATIVE Climbs Building, Zone 5, National Highway Bulua, 9000 Cagayan de Oro City Tel. No/s. (08822) 738-738 (088) 856-1355 Fax No. (08822) 738-886 COMMONWEALTH INSURANCE COMPANY 10th & 19th Floors, 1st BDO Plaza 8737 Paseo de Roxas, Makati City Tel. No/s.818-7626 to 31 Fax No. 813-8575

CORPORATE GUARANTEE & INSURANCE CO., INC. 2nd Floor, CGIC Building Jose Abad Santos Avenue, City of San Fernando, Pampanga Tel. No/s. (045) 961-5621 Fax No.: (045) 963-4991 • Manila: 638-6901 E-mail Address: Customer_service@cgic.com.ph COUNTRY BANKERS INSURANCE CORP. County Bankers Center 648 T.M. Kalaw St., Ermita Manila Tel. No/s.524-1886 to 89; 524-0621 Fax No. 523-2211 EMPIRE INSURANCE COMPANY 2nd Floor, B & P Building 843 A. Arnaiz Avenue, Legaspi Vill., Makati City Tel. No/s. 815-9561 to 65; 812-2245 Fax No. 815-2599 FIRST INTEGRATED BONDING & INSURANCE CO., INC. 2nd Floor, Rm 201 First Midland Offices Condo, 109 Gamboa Street, Legaspi Village, Makati City Tel. No/s. 818-0360; 813-0304 Fax No. 815-2695 Email - firstintegratedbonding@yahoo.com.ph FIRST NATIONWIDE ASSURANCE CORP. Yuchengco Tower II, Leviste Street, Makati City Tel. No/s. 737-3625; 737-3635; 844-2164; 817-4630 Fax No. 867-3483 FLT PRIME INSURANCE CORP. 16th Floor, Pearl Bank Center, Valero St., Salcedo Vill. Makati City Tel. No/s. 892-2826 to 29 Fax No. 813-00-29 FORTUNE GENERAL INS., CORP. 4th Floor, Citystate Center 709 Shaw Boulevard Pasig City Tel. No/s. 706-3959; 706-4013 Fax No. 706-3986

FACT BOOK 2016 87

PIRA MEMBERS FPG INSURANCE COMPANY, INC. 6th Floor, Zuellig Bldg., Makati Ave., cor. Paseo De Roxas, Makati City Tel. No/s. 859-1214; 859-1247; 869-1206; 859-1243; 859-1225 Fax No. 811-5108 GOVERNMENT SERVICE INS. SYSTEM General Insurance Group, Level 7 GSIS Building, Financial Center Roxas Blvd., Pasay City Tel. No/s.479-3510; 473-3512 Fax No. 859-0314 INSURANCE COMPANY OF NORTH AMERICA (ACE INSURANCE PHILIPPINES) 24th Floor, Zuellig Building Makati Ave. Cor. Paseo de Roxas Makati City Tel. No/s. 849-6021 Fax No. 325-1675 INTRA-STRATA ASSURANCE CORPORATION 8th Floor, 88 Corporate Center Sedeno cor. Valero Streets Salcedo Village, Makati City Tel. No/s.817-3031/34 Fax No. 817-2193 INVESTORS ASSURANCE CORP. Unit 1-20th Floor, BDO Plaza Paseo de Roxas near cor. Makati Ave., Makati City Tel. No/s.822-4000; 822-5000; 891-0996 Fax No. 891-1200 LIBERTY INSURANCE CORP. JCS Building, 119 Dela Rosa cor. Carlos Palanca Steets, Legaspi Village, Makati City Tel. No/s. 819-1961 Fax No.819-5217 MAA GENERAL ASSURANCE PHILS.,INC. 9th & 10th Floor, 1001 Pearlbank Centre 146 Valero Street, Salcedo Village, Makati City Tel. No/s. 867-2452 Fax No.893-2230 MALAYAN INSURANCE COMPANY Yuchengco Tower, 500 Quintin Paredes Street, Binondo, Manila Tel. No/s. 241-2744; 244-7270; 241-2739; 243-0943; 242-8888 loc. 232 Fax No. 241-2449; 241-2744; 241-2449; 242-2222;241-1489; 241-2750

FACT BOOK 2016

MANILA SURETY & FIDELITY CO., INC. 66 P. Florentino corner Banawe Streets, Quezon City Tel. No/s.712-2251 to 55 Fax No. 712-4129 MAPFRE INSULAR INSURANCE CORP. Acacia Ave. Madrigal Business Park, Ayala Alabang, Muntinlupa City Tel. No/s. 876-4412; 876-4499 Fax No. 876-4322; 876-4399 MERCANTILE INS. CO., INC. 2ND Floor, Mercantile Insurance Building, General Luna cor. Beaterio streets, Intramuros, Manila Tel. No/s. 527-0667 Fax No. 627-0607 MERIDIAN ASSURANCE CORP. 712 Philippine Stock Exchange Centre Exchange Road, Ortigas Center, Pasig City Tel. No/s. 631-4250 Fax No. 631-4348

ORIENTAL ASSURANCE CORP. 2nd Floor, OAC Building 27 San Miguel Avenue, Ortigas Center, Pasig City Tel. No/s. 631-7851 Fax No. 631-7815 PACIFIC CROSS INSURANCE, INC. Blue Cross Center, 8000 Makati Avenue cor. P. Burgos Street, Makati City Tel. No/s. 899-8001 loc. 8548 Fax No.899-5392; 899-9618 PACIFIC UNION INSURANCE CO. 2401 Antel Corporate Centre 121 Valero Street, Salcedo Village Makati City Tel. No/s. 845-1220; 845-1033/37 loc.122 Fax No. 845-3272 PARAMOUNT LIFE & GENERAL INSURANCE CORP. 15th Floor, Sage House 110 V.A. Rufino St., Legaspi Vill. Makati City Tel. No/s. 772-9200 Fax No. 813-1140

METROPOLITAN INS. CO., INC. 3rd Floor, Athenaeum Building 160 L.P. Leviste Street, Salcedo Vill., Makati City Tel. No/s. 867-2888 Fax No. 816-2294

PEOPLE’S GENERAL INS. CORP. People’s Building, 420 Calle Magallanes, Intramuros, Manila Tel. No/s. 527-7611 to 15 Fax No. 527-6555

MILESTONE GUARANTY & ASSURANCE CORP. 2654 Leveriza near the corner of Pablo Ocampo Street, Malate, Manila Tel. No/s. 353-8024 Fax No. 523-7775 info@milestoneguaranty.com

PERLA COMPANIA DE SEGUROS, INC. 2nd Floor, Perla Compania de Seguros Mansion, 117 Carlos J. Palanca, Jr. Street, Legaspi Village, Makati City Tel. No/s. 892-9546 to 50 Fax No. 892-9548 to 50

NATIONAL REINSURANCE CORP. OF THE PHILIPPINES 31ST Floor, Ayala Life-FGU Center 6811 Ayala Avenue, Makati City Tel. No/s. 988-7402 Fax No.988-7457

PETROGEN INSURANCE CORP. SMC Head Office Complex 40 San Miguel Avenue, Mandaluyong City Tel. No/s. 884-9200 Fax No. 884-0959 E-mail: assy@petron.com

NEW INDIA ASSURANCE CO. LTD. 405 ITC Building 337 Sen. Gil Puyat Ave., Makati City Tel. No/s. 899-3772; 899-9999 Fax No. 899-3844

PGA SOMPO JAPAN INS., INC. 5TH Floor, Corinthian Plaza, 121 Paseo de Roxas, Legaspi Village, Makati City Tel. No/s. 811-34-17; 810-49-16 Fax No. 811-32-78

PIRA MEMBERS PHILIPPINE BRITISH ASSURANCE CO., INC. Morning star Center Building 347 Sen. Gil Puyat Avenue Extension, Makati City Tel. No/s. 890-4051 to 57 Fax No. 897-3588; 890-4058 E-mail: pbac_rwc@mozcom.com PHILIPPINES FIRST INSURANCE COMPANY, INC. 7th Floor, iACADEMY Building 6764 Ayala Avenue, Makati City Tel. No/s. 892-8888 Fax No.814-0601; 814-0582 E-mail: ensure@pfic.com.ph PIONEER INSURANCE & SURETY CORPORATION Pioneer House Makati 108 Paseo De Roxas, Lagaspi Village, Makati City Tel. No/s. 812-7777 Fax No. 817-1461 PIONEER INTERCONTINENTAL INSURANCE CORP. Pioneer House Makati 108 Paseo De Roxas, Lagaspi Village, Makati City Tel. No/s. 812-7777 Fax No. 817-1461 PLARIDEL SURETY & INSURANCE CO. Suite 2502, 25th Floor, 88 Corporate Center cor. Sedeno & Valero Streets Salcedo Village, Makati City Tel. No/s. 889-6101 to 03; 752-1503 Fax No.752-1504 E-mail:plaridel_main@yahoo.com PNB GENERAL INSURERS CO., INC. 2nd Floor, PNB Financial Center, Pres. D. Macapagal Blvd., Pasay City Tel. No/s. 832-0312 Fax No. 832-0313

QBE SEABOARD INSURANCE (Philippines), Inc. 16th Floor, BDO Equitable Tower 8751 Paseo de Roxas, Makati City Tel. No/s. 224-4040 Fax No.224-4044

STRONGHOLD INSURANCE COMPANY, INC. 17th Floor, Security Bank Centre 6776 Ayala Avenue, Makati City Tel. No/s. 891-1329 to 37 Fax No. 891-1383; 891-1326

RELIANCE SURETY & INSURANCE CO., INC. 8th Floor, G.A. Cu-Unjieng Center 208 Dasmarinas Street, Binondo, Manila Tel. No/s. 243-0261 to 70 Fax No. 241-6172 Email: reliance_surety@rsi-insure.com

TRAVELLERS INSURANCE & SURETY CORP. 10th Floor, G.E. Antonio Building T.M. Kalaw cor. J. Bocobo Streets Ermita, Manila Tel. No/s.524-0173 Fax No. 521-4931

REPUBLIC SURETY & INSURANCE CO., INC. 7th Floor, The Rockwell Business Center Ortigas Avenue, Pasig City Tel. No/s. 470-7742 Fax No. 470-3027 Email: werhner.parel@republic-insurance.ph lani.noceja@republic-insurance.ph

UCPB GENERAL INSURANCE CO., INC. (UCPB GEN) 5th Floor, UCPB Building 7907 Makati Avenue, Makati City Tel. No/s. 811-1788 Fax No. 403-7100; 811-3333; 406-7113; 403-7091; 403-7106

SGI PHILS. GENERAL INSURANCE CO., INC. (formerly: Monarch Ins. Co., Inc.) 15TH Floor, Citibank Tower 8741, Paseo de Roxas Street Makati City Tel. No/s. 848-0188 Fax No. 752-2200 E-mail: info@monarch.com.ph SOLID GUARANTY, INC., THE Unit 402-404 4th Floor, Vicente Madrigal Building Ayala Avenue, Makati City Tel. No/s.864-0950 to 52; 810-0121 Fax No. 339-4082; 339-2226 E-mail: ecrelente@thesolidguaranty.com

PREMIER INSURANCE & SURETY CORP. Suite 702, Federal Tower Center Dasmarinas Street, Binondo Manila Tel. No/s. 243-0181 to 88 Fax No. 242-2162; 243-0170 Email: info@thepremier.com.ph

STANDARD INSURANCE CO., INC. 28th Floor, Petron Mega Plaza Bldg. Sen. Gil Puyat Avenue, Makati City Tel. No/s. 988-6306; 988-6340; 988-6338; 988-6308; 988-6314; 988-6358 Fax No. 988-6330

PRUDENTIAL GUARANTEE & ASSURANCE, INC. Coyiuto House 119 C. Palanca Jr., Street, Legaspi Village, Makati City Tel. No/s. 810-4916 to 35 Fax No. 819-2991 Email: coyiutohouse@pga.com.ph

STERLING INSURANCE CO., INC. 6th Floor, Zeta II Annex Bldg., 191 Salcedo Street, Legaspi Village, Makati City Tel. No/s. 893-0025 and 893-0026 Fax No. 759-2399; 892-3794; 759-2886 E-mail: insure@sterling-insurance.com.ph

VISAYAN SURETY & INSURANCE CORP. Unit 1403 Keppel Center, Samar Loop cor. Card. Rosales Ave., Cebu Business Park, Cebu City Tel. No/s. Cebu: (032) 231-1627; 415-8287 Manila: 242-2456; 242-2486 Fax No. Cebu: (032) 415-8287 Manila: 242-6301 WESTERN GUARANTY CORPORATION Suite 508, BPI Office Condominium Building, Plaza Cervantes, Binondo, Manila Tel. No/s. 241-7401 to 07 Fax No. 242-0789

FACT BOOK 2016 89

2016

PIRA COMMITEES FINANCE COMMITTEE NAME

COMPANY

Mr. David P. Mercado, Jr. Chairman Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Ms. Marcelina F. Valles Mr. Erwin V. Toribio Ms. Nel E. Habacon Ms. Alegria R. Castro Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Ms. Shirley F. Dela Cruz

Stronghold Insurance Co., Inc. Alliedbankers Insurance Corp. KRM Reins. Brokers Phils. Inc. PIRA Finance Committee PGA Sompo Japan Insurance Inc. Pioneer Insurance & Surety Corp. Association of Insurance Accountants of the Phils. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

PUBLIC RELATIONS (PR) COMMITTEE NAME Mr. Michael F. Rellosa, Chairman Ms. Rebecca B. Dela Cruz Ms. Melinda A. Natividad Mr. Francisco D. Papa, Jr. Atty. April Raine B. Morales Mr. Antonio Roderick B. Cabusao Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Ms. Marilou C. Serrano

COMPANY AIG Philippines Insurance, Inc. Stronghold Insurance Co., Inc. Paramount Life & Gen. Insurance Corp. Malayan Insurance Co. Inc. FPG Insurance Co., Inc. PIRA, Inc., IT Consultant AIG Philippines Insurance, Inc. PIRA, Inc., Legal Consultant PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

Mr. Mark Lwin, Chairman Mr. David P. Mercado, Jr., Mr. Andres O. Llamas Ms. Maria Beatriz A. Adversalo Ms. Ma. Cristina C. Braganza Mr. Jose C. dela Cruz Mr. Jing Ancheta Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Mr. Jerry L. Garchitorena Ms. Marilou C. Serrano

EDUCATION COMMITTEE COMPANY

NAME Mr. Armand M. Pesigan, Chairman Mr. Michael F. Rellosa Mr. Jose G. Banzon, Jr. Ms. Herminia S. Jacinto Mr. Januario C. Aliwalas Ms. Melinda A. Natividad Mr. Antonio Roderick B. Cabusao Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Ms. Marilou C. Serrano

Pioneer Insurance & Surety Corp. Fortune General Insurance Corp. Seaboard-Eastern Insurance Co., Inc. KRM Reins. Brokers Phils. Inc. Insurance Institute for Asia and the Pacific BPI/MS Insurance Corp. Liberty Insurance Corp. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

FACT BOOK 2016

Fortune General Insurance Corp. Alliedbankers Insurance Corp. BPI/MS Insurance Corp. FPG Insurance Co., Inc. PLARIDEL Surety & Insurance Co. Liberty Insurance Corp. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

AUDIT COMMITTEE

INFORMATION TECHNOLOGY (IT) COMMITTEE NAME

COMPANY

NAME Ms. Rebecca B. Dela Cruz, Chairperson Ms. Claire N. Chua Ms. Joy P. Carlos Ms. Maria Eden G. Del Rosario Mr. Erwin V. Toribio Mr. Rogelio J. Concepcion Ms. Agnes L. Silaya Ms. Shirley F. Dela Cruz

Alliedbankers Insurance Corp. Western Guaranty Corp. Pacific Union Insurance Co. Centennial Guarantee Assurance Corp. PGA Sompo Japan Insurance Inc. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

LEGISLATION/GOVERNMENT LIAISON & LEGAL COMMITTEE NAME Ms. Rebecca B. Dela Cruz, Chairperson Atty. Fortunato D. Peralta. Co-Chair Mr. Jose G. Banzon, Jr. Atty. Victoria B. Roman Atty. Marcelino B. Agana Atty. Maria Luisa Cecilia E. Garcia Atty. Noel Beltran Atty. Francisco Nob Ms. Shirley F. Dela Cruz

COMPANY Alliedbankers Insurance Corp. PIRA, Inc., Legal Consultant Seaboard-Eastern Insurance Co., Inc. R & B Insurance Corp. First Integrated Bonding & Insurance Co., Inc. Charter Ping An Insurance Corporation Investors Assurance Corp. UCPB General Insurance Co., Inc. PIRA, Inc.

TECHNICAL COMMITTEE COMPANY

NAME Mr. Joselito C. Bantayan, Co-Chair Mr. Arturo B. Reyes, Co-Chair, Tech. Com. & Chair, Tech. Sub-Com. on Motor Car Ins. Mr. Joel Libo-on, Chair, Tech-Sub Committee, Fire & Engineering Mr. Kent Cotoco, Chairman, Tech. Sub-Com. on Marine Ms. Melinda A. Natividad, Chairperson, Tech. Sub-Com. on Surety Mr. Alberto C. Santos, Chairman, Tech. Sub-Com. on Casualty Mr. Rogelio J. Concepcion Alexander D. Pablo Ms. Marilou C. Serrano

Bankers Assurance Corp. MAA General Assurance Phils., Inc. UCPB General Insurance Co., Inc. Oriental Assurance Corp. BPI/MS Insurance Corp. BPI/MS Insurance Corp. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON CASUALTY Mr. Alberto C. Santos, Chairman Mr. Alan SD. Sta. Ana Mr. Werhner V. Parel Ms. Priscila M. Manaig Ms. Arlene Q. Calimag Mr. Marlon O. Javellana Mr. Cris A. Mercader, Jr. Mr. Manny M. Maloles Ms. Josephine A. Ramos Atty. Fortunato D. Peralta Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

TECHNICAL SUB-COMMITTEE ON FIRE & ENGINEERING NAME

COMPANY

Mr. Joel Libo-on, Chairman Mr. Armand M. Pesigan Mr. Redentor D. Magat Mr. Edwin V. Salvan Mr. Elmer S. Jose Ms. Eden R. Tesoro Mr. Manuel C. Quijano Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

UCPB General Insurance Co., Inc. Pioneer Insurance & Surety Corp. Fortune General Insurance Corp. Charter Ping An Insurance Corp. PNB General Insurers Co., Inc. National Reinsurance Corp. of the Phils. Lockton Insurance and Reinsurance Brokers, Inc. PIRA, Inc., General Manager PIRA, Inc. PIRA Inc.

Mr. Arturo B. Reyes, Chairman Ms. Maribeth C. Castro Mr. Reynaldo B. Fong Mr. Danilo B. Bariring Mr. Cleto D. Obello, Jr. Ms. Melinda A. Natividad Atty. Leo-Jon Ramos Mr. Christopher Y. Marquez Mr. Alexander Reyes Atty. Fortunato D. Peralta Mr. Alexander D. Pablo Mr. Jerry L. Garchitorena Ms. Shirley F. Dela Cruz

COMPANY MAA General Assurance Phils., Inc. Standard Insurance Co., Inc. Asia Insurance (Philippines) Corp. Stronghold Insurance Co., Inc. Association of Insurance Claimsmen, Inc. BPI/MS Insurance Corp. Pioneer Insurance & Surety Corp. Fortune General Insurance Corp. National Reinsurance Corp. of the Phils. PIRA, Inc., Legal Consultant PIRA, Inc. PIRA, Inc. PIRA, Inc.

BPI/MS Insurance Corp. Philippine British Assurance Co., Inc. Republic Surety & Ins. Co., Inc. UCPB General Insurance Co., Inc. Malayan Insurance Co., Inc Charter Ping An Insurance Corp. Solaire Resorts World Fortune General Insurance Corp. QBE Seaboard Insurance Phils., Inc. PIRA, Inc., Legal Consultant PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON SURETY BUSINESS COMPANY

NAME Ms. Melinda A. Natividad, Chairperson Atty. Guia Laguio Flaminiano Atty. Christopher Jay Sacluti Atty. Christopher Hernandez Atty. Edgardo C. Galvez Atty. Francis Nob Atty. Fortunato D. Peralta Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

BPI/MS Insurance Corp. Prudential Guarantee & Assurance, Inc. FPG Insurance Co., Inc. Malayan Insurance Co., Inc Fortune General Insurance Corp. UCPB General Insurance Co., Inc. PIRA, Inc., Legal Consultant PIRA, Inc. PIRA, Inc.

TECHNICAL SUB-COMMITTEE ON MARINE

TECHNICAL SUB-COMMITTEE ON MOTOR CAR INSURANCE MATTERS NAME

COMPANY

NAME

NAME Mr. Kent S. Cotoco, Chairman Mr. Carlos H. Yturzaeta Mr. Angelito M. Lampa Mr. Elmer Victor B. Felipe Mr. Richard G. Delantar Mr. Edward N. Suy Ms. Maria Lena B. Catacutan Mr. Mandy C. Velasquez Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

COMPANY Oriental Assurance Corp. Marine Underwriters Association of the Philippines BPI/MS Insurance Corp. Charter Ping An Ins. Corp. QBE Seaboard Insurance (Philippines), Inc. MAA General Assurance Corp. Pioneer Insurance & Surety Corp. Malayan Insurance Co., Inc. PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

FACT BOOK 2016 91

TECHNICAL SUB-COMMITTEE ON PRODUCT MARKET DEVELOPMENT NAME

COMPANY

Ms. Joli Co Wu, Chairperson Mr. Mark Lwin, Co-Chair Mr. Carlo Diaz Mr. Manny M. Maloles

QBE Seaboard Insurance Phils., Inc. AIG Phils. Insurance Inc. Bankers Assurance Corp. Fortune General Insurance Corp.

AD-HOC COMMITTEE ON OFFICE ADMINISTRATION NAME

NAME

Fortune General Insurance Corp. National Reinsurance Corp. of the Phils. Stronghold Insurance Co., Inc. PIRA, Inc., Legal Consultant PIRA, Inc., General Manager PIRA, Inc.

AD-HOC COMMITTEE ON ASEAN INTEGRATION NAME

Fortune General Insurance Corp. Charter Ping An Insurance Corp. Bankers Assurance Corp. Republic Surety & Insurance Co., Inc. PIRA, Inc., Legal Consultant PIRA, Inc.

AD-HOC COMMITTEE ON

SELF-REGULATORY ORGANIZATION (SRO) & REVISIONS OF PIRAâ&#x20AC;&#x2122;s ARTICLES OF INCORPORATION AND BY-LAWS

NAME Mr. Jose G. Banzon, Jr., Chairman Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Mr. Emmanuel R. Que Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Shirley F. Dela Cruz

NAME

FACT BOOK 2016

COMPANY

Mr. Augusto P. Hidalgo, Chairman Mr. Emmanuel R. Que Mr. Michael F. Rellosa Atty. Rhodora B. Morales Ms. Rebecca B. Dela Cruz Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion

National Reinsurance Corp. of the Phils. Charter Ping An Insurance Corp. Fortune General Insurance Corp. PLARIDEL Surety & Insurance Co. Alliedbankers Insurance Corp. PIRA, Inc. Legal Consultant PIRA, Inc. General Manager

TECHNICAL WORKING GROUP

STANDARDIZATION OF WORDINGS AND CLAUSES (SWAC)

NAME

COMPANY

Mr. Pedro P. Benedicto, Jr., Chairman Atty. Rodolfo A. Lat Mr. Christopher Y. Marquez Atty. Isagani N. Acosta Mr. Manuel C. Quijano Mr. Joel G. Libo-on Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Mr. Alexander D. Pablo Ms. Marilou C. Serrano

COMPANY Seaboard-Eastern Insurance Co., Inc. Alliedbankers Insurance Corp. KRM Reins. Brokers Phils. Inc. Charter Ping An Insurance Corp. PIRA, Inc., Legal Consultant PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

Bankers Assurance Corp. Bankers Assurance Corp. BPI/MS Insurance Corp. Mapfre Insular Insurance Corp. Western Guaranty Corp. PIRA, Inc., General Manager PIRA, Inc.

TECHNICAL WORKING GROUP TAXATION COMMITEE

COMPANY

Mr. Michael F. Rellosa, Chairman Mr. Emmanuel R. Que Mr. Joselito C. Bantayan Mr. Pedro P. Benedicto, Jr. Atty. Fortunato D. Peralta Ms. Mady P. Tercero

COMPANY

Mr. Joselito C. Bantayan, Chairman Mr. Carlo B. Diaz, Alternate Member Mr. Alberto C. Santos Mr. Tomas V. Mayoralgo, Jr. Mr. Bernard Gerard M. Reyes Mr. Rogelio J. Concepcion Ms. Marilou C. Serrano

COMPANY

Mr. Michael F. Rellosa, Chairman Mr. Augusto P. Hidalgo Mr. David P. Mercado, Jr. Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Ms. Mady P. Tercero

TECHNICAL WORKING GROUP MICROINSURANCE COMMITEE

Republic Surety & Insurance Co., Inc. Chartered Adjusters, Inc. Fortune General Insurance Corp. Philippine British Assurance Co., Inc. Lockton Insurance and Reinsurance Brokers, Inc. UCPB General Insurance. Co., Inc. PIRA, Inc., Legal Consultant PIRA, Inc., General Manager PIRA, Inc. PIRA, Inc.

TECHNICAL WORKING GROUP

CORPORATE GOVERNANCE SCORECARD (with PLIA, IC and MBAI)

NAME Mr. Pedro P. Benedicto, Jr. Ms. Rebecca B. Dela Cruz Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion Deputy Commissioner Vida T. Chiong Deputy Commissioner Dennis B. Funa Mr. George Mina Ms. Carmen Rodriguez

COMPANY Republic Surety & Insurance Co., Inc. Alliedbankers Insurance Corp. PIRA, Inc., Legal Consultant PIRA, Inc., General Manager Insurance Commission Insurance Commission PLIA MBAI

TECHNICAL WORKING GROUP

FINANCIAL REPORTING FRAMEWORK RESERVING and RISK BASED CAPITAL NAME Steering Committee - Mr. David P. Mercado, Jr. Ms. Rebecca B. Dela Cruz Over-All Project Manager - Mr. Rogelio J. Concepcion Ms. Alegria R. Castro Ms. Merlina P. Mendoza Ms. Rosario S. Lopez Ms. Nel E. Habacon Ms. Celia Chan Ms. Lourdes E. Cervantes Ms. Joanne Dela Cruz Mr. Allan R. Santos Mr. Wilfredo R. Pangilinan Mr. Sherwin S. Sampang

COMPANY Stronghold Insurance Co., Inc. Alliedbankers Insurance Corp. PIRA, Inc. General Manager Association of Insurance Accountants of the Phils. BPI/MS Insurance Corp. PLARIDEL Surety & Insurance Co. Pioneer Insurance & Surety Corp. Alliedbankers Insurance Corp. UCPB General Insurance Co. Inc. Malayan Insurance Co., Inc National Reinsurance Corp. of the Phils. AIG Philippines Insurance Inc. QBE Insurance (Philippines), Inc.

PIRA REPRESENTATIVES TO DIFFERENT ASSOCIATIONS CAPITAL MARKET DEVELOPMENT COUNCIL (CMDC)

REPRESENTATIVE TO IC INVESTMENT ADVISORY COUNCIL

NAME

COMPANY

NAME

Mr. Augusto P. Hidalgo Atty. Fortunato D. Peralta

National Reinsurance Corp. of the Phils. PIRA, Inc., Legal Consultant

Ms. Rebecca B. Dela Cruz Ms. Herminia S. Jacinto Mr. Rogelio J. Concepcion

FINANCIAL SECTOR LIAISON COMMITTEE RE: ANTI-MONEY LAUNDERING NAME

COMPANY

Atty. Fortunato D. Peralta

PIRA, Inc., Legal Consultant

MAKATI FIRE SAFETY FOUNDATION, INC. (MAFSAFI) NAME

COMPANY

Atty. Fortunato D. Peralta Mr. Rogelio J. Concepcion

PIRA, Inc., Legal Consultant PIRA, Inc., General Manager

COMPANY Alliedbankers Insurance Corp. KRM Reins. Brokers Phils. Inc. PIRA, Inc., General Manager

ASEAN INSURANCE COUNCIL (AIC) NAME

COMPANY

Mr. Michael F. Rellosa Mr. Pedro P. Benedicto, Jr.

Fortune General Insurance Corp. Republic Surety & Insurance Co., Inc.

PIRA SPOKESPERSON FOR THE INDUSTRY NAME Mr. Michael F. Rellosa

COMPANY Fortune General Insurance Corp.

FACT BOOK 2016 93