market report the philippines

1. marketreport thephilippines

2. ourcountry

3. thephilippines The Philippines is the third largest English speaking country in the world. In Asia, it is the oldest democracy and one of only two predominantly Roman Catholic nations, the other being East Timor. It has a rich history combining Asian, European, and American influences. Composed of 7,107 islands, the Philippines is a tropical country with fascinating landscapes, active volcanoes, splendid beaches, coral waters, and tropical rainforests.

4. thephilippines Official Name: Republic of the Philippines Capital: Manila Official Languages: Filipino, English Total Area: 299,764 km2 (115,739 mi2) Population: 90.5 million (2008 Est) 88,574,614 (2007 Census) GDP (PPP) $320.384 billion Total (2008 Est) $3,546 per capita GDP (Nominal) $168.580 billion Total (2008 Est) $1,866 per capita

5. thephilippines Home of the World’s No. 1 Pound-for-Pound Boxer

6. Insure To Be Sure. ourcompany Aviation • Fire • Marine • Misc. Casualty • Motorcar • Personal Accident • Surety

7.  One of the Flagship Companies of the Yuchengco Group •  79 years of experience in insurance business • One of the largest in Southeast Asia

8. financialstrength PhP 6.192B Gross Premiums (USD 129.0M)PhP 2.913B Premiums Earned (USD 60.7M) PhP 4.636B Net Worth (USD 96.6M) (PhP 48 : USD 1)

9. industryleadership 2008 Industry Figures not yet available

10. industryleadership •  Insurance Commission • #1 non-life insurance company for 38 years now • B++ (Very Good) Rating by A.M. Best (Re-affirmed in December 10, 2008) • BB (Stable) Rating by Standard & Poor’s DRI (Re-affirmed in April 21, 2009) • Awarded an ISO 9001:2000 certification by the Certification International U.K., Ltd. in December 2008

11. industryleadership Republic of the Philippines Department of Finance INSURANCE COMMISSION 1071 United Nations Avenue Manila The Department of Finance’s Insurance Commission has consistently ranked Malayan Insurance as the number one non-life insurance company (in terms of gross premiums written) for 38 years, with close to 20% market share in the industry, from a field of 87 non-life insurance companies. No. 1 since 1970

12. Top 200 Global Insurers trackrecord • A.M. Best has recently affirmed Malayan Insurance’s B++(Very Good) Rating • A.M. Best Co. is the world’s oldest and most authoritative insurance rating and information source. • Malayan Insurance has a BB (Stable) Rating from Standard & Poor’s (S&P), reflecting its strong market position, especially in fire insurance, as the largest general insurer in the Philippines and sound capitalization relative to risks underwritten.

13. trackrecord Certification International U.K., Ltd. has recently awarded Malayan Insurance Co. Inc. an ISO 9001:2000 Certification. ISO 9001:2000 is an internationally-known model for a well- planned quality management system, a foundation for organizations seeking disciplined and controlled processes to help achieve customer satisfaction and continual improvement.

14. non-life ourindustry

15. grosspremiumswritten Data based on IC Annual Report (2008 figures not yet available)

16. growth of industry gpw by line Data based on IC Annual Report (2008 figures not yet available)

17. industry sum insured vs gpw Data based on IC Annual Report (2008 figures not yet available)

18. insurance penetration (based on gpw)gpw vs gdp growth Data based on IC Annual Report (2008 figures not yet available)

19. industryportfoliomix Data based on IC Annual Report (2008 figures not yet available)

20. industryretentionratio in USD millions Data based on IC Annual Report (2008 figures not yet available)

21. industry retention ratio by line Data based on IC Annual Report (2008 figures not yet available)

22. industrylossratio in USD millions Data based on IC Annual Report (2008 figures not yet available)

23. industry loss ratio by line Data based on IC Annual Report (2008 figures not yet available)

24. industrycombinedratio *2007 Expense Ratio includes Investment Expenses Data based on IC Annual Report (2008 figures not yet available)

25. number of insurance companies/reinsurance firms in the philippines Data based on IC Annual Report (2008 figures not yet available)

26. currentissues

27. RP Insurance Industry ‘Stable’ S&P early this month maintained its “stable” outlook for the Philippine insurance industry after it down-graded its outlook for most insurance markets in the Asia-Pacific region. Paul Clarkson, S&P credit analyst focusing on the Philippine insurance industry, said the stable outlook on the country’s life and non-life insurers was retained given their efforts to hike their capital amid tough economic conditions.

28. Capitalization Requirements The industry may be impacted by the capital hike requirement for non-life insurance companies

29. Failure to meet the RBC Ratio requirements under Insurance Memorandum Circular 7-2006 shall result in the corresponding Action/Control Event(s) Capital hike will still be implemented in conjunction with the risk-based capital (RBC) requirements

30. Motorcar Third Party Compulsory Insurance • LTO implements memorandum designating GSIS as sole provider of CTPL for motor vehicles … • despite temporary restraining order based on petition by a non-life insurance workers’ group • Arguments for GSIS • Lower fees, greater convenience for car owners • Curb proliferation of fake CTPL insurance • Capture correct taxes • Arguments against GSIS and in favor of PIRA-administered Cover Authenticating Facility (CoCAF) • Capability for speedy and efficient processing of claims • Creation of a monopoly • Government involvement in private business

31. Insurance Taxes • New tax provisions affecting the insurance industry + Positive • Additional exemption in computing MCIT: • Cost of facilities such as depreciation, supplies, rental of equipment • Inspection & medical fees • Interest expense on investment income not subject to final tax • Reduction in documentary stamp tax (DST) from 12.5% (P0.50 for every P4 premiums) to 0.25% (P0.50 for every P200 premiums) for PA&Health • Negative • Imposition of P15 DST on Certificates of Insurance • Investment income realized from funds held subject to gross receipts tax

32. Competitive Landscape • Reduction in number of companies from 93 in 2006 to 87 in 2007 • 2 local companies were not renewed their Certificates of Authority • 2 others were placed under conservatorship, due to capital or MOS deficiencies • 1 foreign company, Aviva, pulled out of the market • 2 companies merged (merger of BPIMS and FGU) • Non-life insurance industry remains overcrowded

33. Competitive Landscape • Reduction in number of companies from 93 in 2006 to 87 in 2007 • Non-life insurance industry remains overcrowded • Intense competition characterized by rate-cutting and rising intermediary compensation

34. Competitive Landscape • Reduction in number of companies from 93 in 2006 to 87 in 2007 • Non-life insurance industry remains overcrowded • Intense competition characterized by rate- cutting and rising intermediary compensation • Low insurance penetration of less than 1%--there is still a huge untapped market potential

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