A Message from the President

     The economic outlook of the Philippines in 2009 was fairly stable except for the “Ondoy” calamity in the 3rd quarter of that year.  The GNP of 3.1% while fairly commendable in the Asean region was somewhat dented by the volatile prices of the oil commodities and bourgeoning budgetary deficit.  These negative factors were, however, cushioned by the remarkable US $ 9.1 billion remittances of OFW’s and the resiliency of the financial and services sectors.

     The performance of the non-life sector at the start of the year was relatively commendable except for the effects of the “Ondoy” calamity.  Your company’s performance for 2009 can be gauged by the following figures:  Gross Premium Written for the year amounted to Php 184.70 Million; Net Premium amounted to Php 142.50 Million which is approximately at par with that of the 2008 figure.  On the reinsurance side, reciprocal cessions among non-life companies have diminished because most underwriters have opted for much bigger retention. Our Total Comprehensive Income for 2009 amounted to Php 16.80 Million.  Investment of your company on Treasury Bills amounted to Php 86.90 Million; Investment on Stocks amounted to Php 29.40 Million.  Total assets amounted to Php 476.20 Million

     On the underwriting side, 2 major lines have been adversely affected by the “Ondoy” calamity whose nature and geographical scope was unprecedented.  Our Combined Catastrophe Excess of Loss Cover for property and motor was not enough as flood claims on motor consumed the priority layers of the catastrophe cover.  The losses were, however, somewhat cushioned by the remarkable performance of our Surety lines as well as income from our various investment instruments. 

     We are confident that in a couple of years, we shall have recovered from the “Ondoy” calamity and look forward to 2010 with renewed efforts to cut down on our variable expenses so as to meet the rising cost of power and other essentials needed in our operations.  On the marketing side, we are embarking on developing our retail accounts in order to enhance our underwriting income. 

    I would like to extend my sincerest thanks to all stakeholders, members of the Board of Directors, officers and staff of our company for the support you have given to establish your company as one of the leading players in the non-life insurance industry.

DIONISIO M. DUNGCA, JR.
President