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Malayan Insurance maintains lead on 81st year

Leading non-life insurer Malayan Insurance enters its 81st year of service with much optimism of retaining its no. 1 position in the industry. The company, which is considered the founding pillar of the Yuchengco Group of Companies, continues its #1 rank with gross premiums written of P5.86 billion and net premiums written of P2.59 billion, keeping a significant lead over its nearest competitor. Malayan reached the no. 1 spot in 1970 and has consistently stayed on top up to the present. As the countrys leader in non-life insurance, it has provided world-class property, casualty, motorcar, accident and marine insurance, as well as surety bonds, to Filipino businesses and families for more than 8 decades already. Don Enrique T. Yuchengco founded the China Insurance and Surety Company in 1930 out of the vision to provide exemplary insurance service and operate through fair dealings and speedy settlement of just and valid claims. The company was renamed Malayan Insurance in 1949 under Don Enrique's son Alfonso, who went on to consolidate his other businesses under his YGC conglomerate. To this day, the strength of its founding vision propels Malayan to excellence, which is recognized by an ISO 9001:2008 global quality management certification. By virtue of its aptitude for developing more products and services, initiating robust retail business efforts, and maintaining strong capitalization, the company continues to gain favorable outlook as well from respected global ratings agencies such as Standard and Poor's and A.M. Best.

Malayan Insurance, RFC Philippines settle claim of bereaved family.

In yet another display of its commitment to prompt processing of just and valid claims, Malayan Insurance, the countrys no. 1 non-life insurance company, was able to settle the death benefits of the widow Jocelyn Tatac (in photo, center) two weeks after filing a claim on her husband Dantes death benefit. Dante Tatac was insured through the Pampamilya Insurance Program, a partnership product between Malayan and Radiowealth Finance Company (RFC), a consumer and retail lending firm that serves the micro enterprise sector. RFC partnered with Malayan in 2008 to help protect its loan borrowers against accidents and other adverse circumstances. Dante Tatacs death benefit will go a long way to comfort the bereaved family he left behind, composed of his wife and their five children. Beside the claimant in photo is Yvonne S. Yuchengco (right), President of Malayan Insurance, with Benjamin C. Lucas, Jr., RFC COO and General Manager.

Malayan Insurance now ISO 9001: 2008 Certified Certification International U.K., Ltd recently upgraded Malayan Insurances certification from ISO 9001:2000 to ISO 9001:2008. The confirmation was based on the successful audit of Malayans Quality Management System (QMS) conducted in 2010.

ISO 9001:2008 is a new standard 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. Certification International especially cited the strengths of the Malayans QMS and the activities that have been initiated by the companys different departments to meet their quality objectives, and ensure external and internal customer satisfaction. The certification is a testimony to Malayans mission to provide service excellence and world-class insurance protection for its clients. Malayan Insurance is currently celebrating 81 years of service excellence, strength and stability. Founded in February 1930, Malayan in a member of the Yuchengco Group of Companies. The Insurance Commission of the Philippines has consistently ranked Malayan Insurance as the number one non-life insurance company in the country, in terms of gross premiums written and premiums earned, for the past 40 years. It has been given a financial strength rating of B++ (Good) and an issuer credit rating of bbb by A.M. Best, the worlds most authoritative insurance rating company. Malayan Insurance has likewise received a BB positive rating from Standard & Poors.

Malayan Insurance gains stable S&P rating

Malayan Insurance's leading market position, consistent investment performance and sound capitalization were key factors that merited another BB/Stable financial strength rating from Standard & Poor's, one of the world's most respected global credit ratings agencies. The company outlook is notable in the face of what S&P determined as a challenging operating environment, characterized by lower capital requirements, higher industry tax, and a weaker regulatory oversight compared with other regional markets. S&P stated that the current volatility of the company's underwriting performance is expected to improve over the next three to five years due to better risk selection and a higher number of retail products. In its latest report, the agency further stated: Malayan has a strong business position as the largest non-life insurance company in the Philippines. It has strong parentage, a long record of operations, deep corporate relationships, and a wide branch network that has helped it maintain a leading 20% market share of gross premiums. Its share in the fire class is even larger, at about 31%, due to longestablished relationships.

Based on data from the Philippine Insurance Commission, Malayan Insurance has been consistently ranked number one in the non-life insurance industry for the past 40 years. As of end-2009, the company has assets of over P15 billion, and gross premiums worth over P6.2 billion, more than double its nearest competitor. Malayan Insurance also recently gained an upgrade in its ISO certification, from ISO 9001:2000 to ISO 9001-2008 from Certification International U.K., following the successful audit of the company's Quality Management System (QMS) conducted in 2010. The certification is a testimony to Malayans mission to provide service excellence and world-class insurance protection for its clients. Malayan Insurance is currently celebrating 81 years of service excellence, strength and stability. Founded in February 1930, it now has a network of 34 offices in key cities nationwide. Together with its subsidiaries Bankers Assurance Corporation (BAC) and First Nationwide Assurance Corporation (FNAC), Malayan Insurance forms the country's biggest group of non-life insurance companies.

A.M. Best Affirms Ratings of Malayan Insurance Co., Inc. A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and issuer credit rating of bbb of Malayan Insurance Co., Inc. (MICO). The outlook for all ratings is stable. Since 2005, A.M. Best has provided MICO with a favorable rating for six (6) consecutive years. The ratings reflect MICOs strong business profile, adequate level of capitalization and consistent investment performance. Despite the competitive environment of its main operating market, MICO has maintained its leading position as the largest non-life direct insurer in the Philippines in terms of gross premiums written in 2009. MICOs capitalization level is supportive of its current ratings and has further strengthened in fiscal year 2009, given its greater surplus growth compared to both its underwriting and assets risks. The companys investment performance remained good in 2009, generating sufficient earnings to offset the underwriting loss and to record positive net income. Offsetting these factors is the volatility of the underwriting performance and the competitive operating environment in the non-life insurance sector of the Philippines. The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Bests rating process and highlights the different rating criteria employed. Additional key

criteria utilized include: Understanding Universal BCAR; Natural Catastrophe Stress Test Methodology; Rating Members of Insurance Groups; Assessing Country Risk; and Risk Management and the Rating Process for Insurance Companies. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. Malayan Insurance is currently celebrating its 81st year in the Philippine non-life insurance industry. It offers a range of property and casualty products that offer protection for homes, motor vehicles, businesses, families and individuals nationwide. It has a branch network of 34 offices located in key cities all over the Philippines. It is a member of the Yuchengco Group of Companies.

Malayan Insurance receives two awards during the 1st PIRA Awards Malayan Insurance receives the Awards for Corporate Social Responsibility and the award for Corporate Governance, during the 1st PIRA Awards held October 21, 2011.


THE SECRET TO MALAYAN'S UNWAVERING SUCCESS MOVING VISION RESTLESS is one word to describe the Philippines - and the rest of the world - in the early 1930s. Nations were biting their nails in anticipation of war. It was as though you could perceive a bomb ticking away in a short distance, only to realize it was the wild beating of your own heart that you're hearing. It was amid this environment that Don Enrique T. Yuchengco - Father and Founder of what is now known as the Malayan Insurance - set up what he called then as China Insurance and Surety Company. People either saw it as an excellent move or a hasty endeavor, depending on one's penchant for risky undertakings. But for Don Enrique, it was the most practical business decision that he ever made.

After all, the 1930s also marked the beginnings of the Commonwealth, which promised to be a transition government before the country gained its independence from the United States 15 years later. As the country prepared for its independence, Don Enrique, not only saw liberty from foreign hands, but, with the trained eye of a brilliant businessman, foresaw a thriving economy and a prosperous future for the Philippines. Barring skepticism, Don Enrique took a leap of faith into the then uncharted waters of the insurance industry, while grasping the one possession that he had which others lack: VISION. This outstanding quality was later on inherited by his son, Alfonso. ASHES TO GOLD True to his vision, Malayan Insurance has continuously ranked FIRST in the non-life insurance industry - a position it has enjoyed for decades. From a handful of employees and a paid-up capital of P147,500 when it opened its doors on February 16, 1930; it now boasts of hundreds of employees in the Philippines and abroad, with a multi-billion-asset portfolio. Indeed, Malayan Insurance has gone a long, long way. Then again, getting to the top was to say the least - not an easy walk in the park. When World War II broke out, the upward growth of China Insurance was suddenly put to a halt. In 1944, the company's operations were suspended. When the battle ended in 1945, only a shadow of the once thriving Manila was left. The war left billions of pesos worth of damages and economic losses to the country. Nothing was spared. The Japanese liquidated China Insurance and Surety, Inc. during the occupation, and its capital assets seized by the occupation government. The former premier location of China Insurance along Gandara St., in downtown Binondo was reduced to rubble and ashes, but not its Founder. With unwavering resolve to rebuild what was ruined, Don Enrique reopened China Insurance and Surety Company in 1949. This time in a "shanty" at 484 Rosario St., now Quintin Paredes St., in Binondo, Manila. Aside from the location, however, Don Enrique and his handful of dependable employees - inadvertently or not - built a more sturdy, resilient image of himself in the eyes of China Insurance's pre-war policyholders when he settled their claims for losses, even when his business was ravaged by war. That was pure, unadulterated palabra de honor in the eyes of the public. And with that move, China Insurance quickly regained its former stature in the insurance industry in the newlyindependent Republic. NEW NAME, NEW LEADER

In 1949, owing to an atmosphere of nationalistic fervor and a growing realization of the need to establish the identity of the brown race, China Insurance was renamed Malayan Insurance Company. In the couple of years that followed, the reins of leadership was also gradually passed on to Don Enrique's son Alfonso - a practicing accountant

who took advanced studies at Columbia University, New York. Alfonso learned the ropes of the business the hard way when he became Malayan's general manager, just only in his mid-twenties. He did two jobs - early morning to midday as a professor at the Far Eastern University, then after that worked late nights and even Sundays at Malayan. When Don Enrique passed away in 1953, he was more than equipped to head the fast-growing business. SURGING AHEAD Under Alfonso Yuchengco, Malayan Insurance experienced tremendous growth. The Malayan Group of Insurance Companies was established. Under its wings was the Malayan Insurance Company Inc. as the nucleus, the Pan Malayan Insurance Corporation (later named Tokio Marine Malayan Insurance Co., Inc.), The First Nationwide Assurance Corporation and Bankers and Manufacturers Assurance Corporation (later known as the Malayan-Zurich Insurance Company, Inc. and then renamed as Bankers Assurance Corporation in 2006). In July 2008, the Tokio Marine Malayan Insurance Co., Inc. merged with Malayan Insurance Company, Inc. It is expected that the combined resources and capabilities of the two will further enhance Malayan Insurances leadership in the Philippine market. The Group provided the machinery for local and global expansion. Between 1955 and 1976, offices were established in Hong Kong, Kuala Lumpur, Singapore, Brunei, Bangkok, Jakarta, Taipei, Guam, Papua New Guinea, the United Kingdom, Japan, Greece, France, Belgium, Germany, Mexico, Kenya and Holland; a subsidiary was established in the United States; and in the Philippines, regional offices and branches were opened in Luzon, Visayas and Mindanao. In a speech delivered during the 1999 Annual Lecture of the Malaysian Institute, Ambassador Alfonso T. Yuchengco stated that, "Malayan was probably the first ASEANbased insurance company to become truly multinational. It was the first to avail of the openness then of the various Asian countries to the establishment of branches by foreign insurance companies." In 1983, Alfonso Yuchengco's daughter, Helen Y. Dee, was elected as the third president of Malayan Insurance, heralding a period of domestic expansion and modernization. She spearheaded the firm's modernization programs through innovative developments in manpower training, computer technology and insurance products and services. In 1982 and 1984, Mrs. Dee was elected Chairperson of the ASEAN Insurance Council (AIC). STRONGER, STURDIER AT 75 The strength of Malayan Insurance has been reaffirmed internationally. AM Best, the worlds oldest and most authoritative insurance rating and information source, affirmed Malayan Insurances rating of B++ (Good) and assigned an issuer credit rating of bbb . The outlook on both ratings is stable, reflecting consistency in market leadership, strong risk adjusted capitalization, and a stable stream of investment income and extensive reinsurance arrangements. Standard and Poors also provided a BB (positive) rating despite the entire industrys negative financial strength outlook, noting the companys market franchise, satisfactory solvency and adequate level of reserves that support the companys growth prospects.

Perhaps one of the more perceptible keys to Malayan Insurance's success is its constant pursuit of innovative products and services - all for the benefit of the policyholders who have placed their trust on the company over the years. Proof of that was when Malayan created the first Filipino professional reinsurance company in the Philippines in 1956. While in the '60s, Malayan introduced the first Personal Accident Insurance vending machine - the Flight Travel Insurance Plan - and the first Personal Accident (PA) Christmas Card. Malayan's "firsts" continued in the '80s when it again became the first insurance company to embrace modern technology. In 1983, Malayan networked all its systems and computerized its processes. While in 1987, it introduced another innovation in the country with Car Etching - a carnapping deterrent program - in cooperation with the Philippine Motor Association. Malayan's prospective and existing policyholders in the 1990s were greeted with more pioneering products. In 1992, Malayan introduced the first fully-computerized motorcar insurance claims processing service, aptly called Express Claims Service (XCS). Another innovation of the standard motorcar insurance was the Loss of Use (LOU) feature which provided policyholders with an additional benefit of transportation reimbursement when the insured vehicle is not available for use as a result of loss or damage. Wanting to further improve its service to its policyholders, Malayan provided motorcar insurance policyholders with a free Membership Road Assistance Program dubbed CAMILLE or Call Malayan Insurance Live Line. In 1995, Fidel M. Alfonso, a well-known personality in the domestic insurance industry, and Yvonne S. Yuchengco, were elected Chairman of the Board and President of Malayan, respectively. Together, they embarked on a quest to raise the standards of insurance protection and service quality in the Philippine non-life insurance industry. In 2001, Atty. Adelita Aquino Vergel de Dios, the country's former Insurance Commissioner during the administration of President Corazon S. Aquino, was elected Chairman of the Board of Malayan Insurance. Together with Yvonne S. Yuchengco, the company sought to increase the industry's penetration in the country, which the Insurance Commission identified as a low 11% of the "insurable universe." What Malayan did was to open new markets and channels to insurance product, and, provided the public insurance access through banks (through its marketing programs), pawnshops, cellphone service providers, utility service providers, money remittance outlets, credit cards and privilege cards, rural banks and livelihood cooperatives. After Atty. Vergel De Dios left the company in February 2008, Malayan Insurance welcomed its new Chairman of the Board, Mrs. Helen Y. Dee. A stream of new products and packages were created by Malayan Insurance, enabling the ordinary Filipino to enjoy world class insurance protection through products like the Home Protect (an affordable insurance package for homeowners, town-house and condominium unit owners), the Automaster (a fully loaded automobile insurance package that provides superior features to the car-owner), Golfer's Insurance (a comprehensive insurance package for golfers), Business Protect (a packaged insurance product meant for small and medium business owners, offices and franchise holders), Malayan's Travel Master (a comprehensive accident and medical insurance cover with travel assistance benefits), and the OFW Bantay Pamilya (a personal accident and hospitalization insurance plan designed for the

family/dependents of overseas Filipino workers). The youthful leadership in Malayan then established a Quality Services Department - a first in the industry - which reviewed and improved the processes and transaction turn-around time of the company's front-line services, thereby raising the bar on customer service among the 94 insurance companies doing business in the Philippines at the turn of the century. Malayan also successfully lobbied various local governments to mandate that business owners and building owners be required to obtain general liability insurance to protect those who would suffer an accident or be harmed while in their premises. The company also advocated for the national government to use the proceeds from the fire service tax to improve the country's Fire protection services. Today, the general public, as well as the non-life insurance industry, is benefiting from the leadership shown by Malayan Insurance. Serving the varied needs of the market is at the core of Malayan Insurance's mission. And this mission was further affirmed when in 2002, it introduced the first valued insurance cover for high-end big bikes, called the Motorcycle 1. In keeping up with hard times, Malayan also saw fit to give the public the best way to invest their hard-earned peso when it introduced Text Insure in 2003 and One Peso a Day in 2004 - giving policyholders the first daily travel insurance conveniently available through SMS text. Two innovative products were introduced in the market in 2005 namely: the Cell Protect which exclusively offered to the subscribers of Globe G-Plan that provides indemnity for lost or stolen or accidentally damaged cellphones and SIM cards; and, Travel Master, a full protection travel insurance that responds to various emergencies and assistance while traveling such as accidents, medical assistance and recovery of lost or delayed baggage. On its 75th year, Malayan honored its founder by successfully campaigning to rename Calle Nueva St. in Binondo to E.T. Yuchengco Street. Malayan also channeled its efforts on investment by developing the Malayan Plaza, a 36-storey residential condominium in Ortigas. The Plaza was inaugurated in 2005. Also in this year, Malayan launched Todo Asenso, a micro loan insurance product in partnership with the Rural Bankers Association of the Philippines (RBAP). In 2006, two casualty line products were introduced, the PC Protect Insurance and Photo RX that cover the valuable owned computers and cameras against accidental damages and loss. As a part of its Corporate Social Responsibility Program, Malayan also launched in 2006 the Kabalikat Malayan Pondo Kabuhayan that supports the Gawad Kabuhayan sustainable livelihood projects of Couples for Christ. A portion of the insurance premiums paid by clients who renewed their comprehensive motorcar insurance and residential fire insurance policies was donated to Gawad Kabuhayan. With much vigor, Malayan unveiled another product in 2007, the Foresight D & O Liability Insurance, a legal liability insurance for company executives and officers against any allegation of wrongful act brought against them. TravelSure travel insurance product was also launched and was exclusively offered to passengers of the leading domestic airline in the country. Also in 2007, the Fire Assist product sachet protection to ones property from losses due to fire and lightning was introduced. At this very moment, the Malayan Group - the Members of the Board down to the staff - are on a constant lookout for fresh, new ways to address the needs of the market. It never rests on its laurels, even as it has a strong hold at the top post in the non-life insurance market. And of course, much of Malayan Insurance's success is also credited to the men and women who tirelessly present to the public the many virtues of its products and services. They are

Malayan's intermediaries and agents -- men and women who literally go to great lengths to offer the no.1 non-life insurance products in the country. ENDURING LEGACY Looking at the company's history, one can surmise that the lessons and legacies of three generations have not been kept in a wooden chest to rot and get musty. Instead, the wisdom and experience have been passed on such that when you look at Malayan today, the old school type of leadership is still very much present - made more potent with the injection of modern technology and unending dynamism. Giants in the fields of business and politics have also shared their experiences with the company. Among those who have served as Chairmen of the Board include Mariano Cuenco, former President of the Philippine Senate; Alfonso Sycip, a well-respected banker and business tycoon; Carlos P. Romulo, former President of the United Nations General Assembly and former Foreign Secretary; and Alfonso T. Yuchengco, Don Enrique's son who would later become Ambassador to the People's Republic of China (1986-1989) and Japan (1995-1998). Excellent leadership, diligence, creativity and palabra de honor, these virtues kept the Company afloat when it was hit by circumstances that it had no control over. And these virtues are also the main reason why Malayan Insurance remains at its fittest - ready to take on any challenge - that the world places at its feet for years to come.

Euromoneys Best Insurer in the Philippines continues to redefine excellence

After being cited as Euromoneys 2009 Best Insurer in the Philippines, it was business as usual for Pioneer Insurance & Surety Corporation (PISC), one of the countrys top non-life insurance companies. The usual though, for Pioneer Insurance is definitely out of the ordinary, as the standard for the team is to constantly aim for higher levels of excellence. Having also been cited by the magazine as Best Insurer for Innovation and Best for Claims Resolution, the team has been challenged to not only maintain but surpass the expectations of its varied client base. In the survey, conducted by the leading journal for international financial markets, 400 risk managers, treasurers and chief financial officers were asked to rank the best insurers around the world. Pioneer Insurance topped the survey as Best Insurer for the Philippines, joining 58 other Best Insurer awardees from other countries. In an increasingly challenging financial

environment, the winners of the 2009 Euromoney Insurance Awards are those that exhibited the ability to innovate, respond to the increasingly complex demands of their clients, and make the best use of the inherent strengths of their organization. Through the insurance survey, the market has recognized the achievements of these institutions in the face of difficult market conditions, which is why the awards are so richly deserved, said Neil Osborn, publisher of Euromoney. Our clients have always expressed their appreciation for our ability to resolve claims and for the way we respond to their needs, states PISC President and CEO David Coyukiat. The Best Insurer citation is an assurance that we are serving our clients well. He likewise sees the recognition as a reminder, to be constantly aware of how we can serve our clients even better in a challenging environment. Pioneer Insurance has been serving the Filipino for over half a century. This experience, coupled with the drive to be consistently among the top five non-life insurers in the country, makes Pioneer a respected name in the industry. With Euromoney naming it Best Insurer in the Philippines 2009, the Pioneer team proudly forges ahead and looks forward to being the industry benchmark for excellence, year a Home Pampanga Local News

Insurance firm bags best in CSR award

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Thursday, October 27, 2011 CITY OF SAN FERNANDO -- Corporate Guarantee and Insurance Company (CGIC) was awarded Best in Corporate Social Responsibility (CSR) during the 1st Philippine Insurers and Reinsurers Association (Pira) Awards Night held at The Peninsula Manila last October 21. CGIC, an affiliate of the Laus Group of Companies -- the leading automotive dealership network in the country -- earned the plum through its various CSR programs and activities that include seminars on safety driving, auto-preventive maintenance and trouble shooting, safety driving tips and proper vehicle maintenance via tri-media and the website. Plan your Sinulog week ahead and find out what's in store for Sinulog 2012. The award is another feather in the cap of CGIC and considered as a milestone achievement since CGIC competed against other top finalists such as: ACE Insurance Company of North America, BPI/MS Insurance Corporation, Fortune General Insurance Corporation, MAA General Assurance Philippines, Malayan Insurance Company, MAPFRE Insular Insurance Corporation, Perla Compania de Seguros, Philippine Charter Insurance Corporation, Pioneer Insurance and Surety Corporation, QBE Insurance (Philippines), Reliance Surety and Insurance Company, Seaboard-Eastern Insurance Company, Utility Assurance Corporation and Visayan Surety and Insurance Corporation.

All the finalists belong to the industrys top performing non-life insurance companies. The award is the industrys way of honoring its best members, particularly in the fields of Corporate Governance and Corporate Social Responsibility. All 87 member companies are candidates for the said awards. CGIC was among the 15 finalists chosen under the CSR category after the initial screening process was made based on the questionnaires submitted by each Pira member. Four other non-life insurance firms were also given the same award, namely: Malayan Insurance Company, MAPFRE Insular Insurance Corporation, BPI/MS Insurance Corporation, and Pioneer Insurance and Surety Corporation. The theme for the 1st Pira Awards is Malasakit, which means in simple translation as genuine concern. It embodies everything that the non-life insurance industry wants to show to its customers, the Filipino society and to the entire country. In line with this theme, the CSR programs of the finalists should meet the required criteria for impact, uniqueness and sustainability to be considered as winners. Established in 1997, CGIC has been among the top performing non-life insurance firms and only one of seven in the industry with ISO-9001:2008 Certification CGIC is also the first such firm to establish its headquarters outside Metro Manila.

Our Company
Pioneer Insurance & Surety Corporation is the flagship company of the Pioneer Group. Its market leadership is highlighted by its strong position across all non-life insurance lines, including property, marine, motor and aviation. Pioneers solid reputation has been reinforced by recognition from its customers in the Euromoney Annual Global Insurance Survey where Pioneer was cited as Best Insurer in the Philippines for a second consecutive year. This year, Pioneer has also been recognized as best Insurer in Asia in the General Property & Casualty and Employer Liability subcategories. Pioneer Insurance generated gross premiums written of close to P2.2 billion in 2009, backed by equity of almost P6 billion and managed assets of nearly P10 billion.