Saturday, July 5, 2014

Insular Life largest and most valuable Insurance Company in the Philippines, 2nd time in a row! (2013 Ranking)

Insular Life largest and most valuable Insurance Company in the Philippines, 2nd time in a row! (2013 Ranking)

For the past few years I am with Insular Life. I have seen how this company has grown and I can say with my heart that I am proud to be a Filipino.

As per insurance commission website, here is the net worth ranking of insurance companies operating in the Philippines from 2011 to 2013:

Insular Life has been growing as  company through its prudent management of resources and expenses and proper investment management. For 2013, we are the largest and most valuable life insurance company of the Philippines, two times now in a row.

Net worth is important since it is a measure of how much assets is left after deducting liabilities. It is usually an indicator of how much financial pressure a company can take.

Insular Life has been founded in 1910. It is the First Filipino Life Insurance Company that has been established in the Philippines.

Being a The Largest Insurance Company in the Philippines means that we have been a great help to the Insurance Industry and to the Philippine Economy. Insular Life has created several job opportunities for Filipinos, has contributed to large taxes for nation building.

Moving forward, we continue to pray that someday we can be able to reach out to more people (and maybe outside the Philippines) through the financial solutions that we provide for single individuals starting to save their money, to parents who are saving for their child's education or for those who are saving for retirement and for those who are planning for their estate and inheritance.

That way we can help more individuals and provide more jobs for the Filipino people.

Mabuhay ang Pinoy at Mabuhay ang Insular Life!

New Product of Insular: Sure Cash For Me 1 Pay

Just this July, Insular Life has just recently introduced a new product called Sure Cash For Me 1 Pay. Sure cash for me is a 1 time paying endowment program that provides insurance coverage until age 15. It is available for individuals age 55 and below. No medical examination is required to avail of the program.

Aside from the insurance coverage, it provides guaranteed yearly cash benefits of 10% of the insurance coverage (face amount) every year starting the end of the 5th year to the end of the 14th year.

When the insurance terminates on the 15th year, a lump sum of 100% of the face amount will be given the insured if he is still alive.

Illustration of Benefits:

Age of Insured: 35Plan 500Face Amount: P500,000
AT THE END OF THE5th year50,000
 6th year50,000
 7th year50,000
 8th year50,000
 9th year50,000
 10th year50,000
 11th year50,000
 12th year50,000
 13th year50,000
 14th year50,000
MATURITY BENEFIT15th year500,000
LIFE INSURANCE BENEFIT1ST TO 2ND YEAR(if death due to natural cause)
Return of premiums plus 2% interest
per annum
  (if death due to accident/injury)1,000,000

 3RD TO 15TH YEAR(sickness and accidental death) 1,000,000

The Legal Wife Problem in Real Life Setting


The teleserye The Legal Wife has been a very popular one primarily because a lot of people can relate to the issue. If someone a man dies, who is entitled to bury the corpse- the legal or the mistress? Read the article below from Atty. Leo Cabrera which an be found at

Early in 2012, a custody battle over the corpse of a prominent congressman arose between his estranged wife and his mistress. The solon died in a foreign land and the mistress left instructions with the mortuary to cremate the body. The wife though wanted her husband’s remains to be buried in their family mausoleum in the Philippines. The foreign court awarded custody to the mistress, but the wife filed her own case in Quezon City. Eventually, the matter was settled in a media-frenzy spectacle with both women being present in the funeral and burial of the late solon in his home province.

If the conflict had dragged on, who would legally be entitled to Iggy’s corpse? And would the remains be cremated, or buried?

Fortunately, we need not wonder any longer as the Supreme Court came out with what could well be the final saying “corpse custody battles” just a few weeks ago.

Adriano and Rosario were married but became estranged. Rosario had been living separately in the United States for 20 years, while Adriano began maintaining a live-in relationship with Fe.

When Adriano died, Fe took care of all the funeral arrangements in Manila Memorial Park. Rosario then learned of Adriano’s death and immediately contacted Fe telling her to wait for her as she wanted to bury him instead in Holy Cross Memorial Park. When Fe ignored Rosario’s pleas, Rosario filed a lawsuit against her.

Fe argued that Adriano had long ago told her that he wanted to be buried in Manila Memorial park. She also pointed out that Rosario had no right since she had already abandoned him.

Ruling in favor of Rosario, the Supreme Court explained that custody over a corpse follows the same hierarchical order as support, i.e., the spouse is primarily favored, followed by the nearest descendants, the nearest ascendants, and lastly the siblings. The persons enumerated are the only ones given the duty of burial and their consent is required in the disposition of human remains. A mistress is clearly not among those mentioned.

Fe also cannot take refuge in the fact that Adriano allegedly left instructions to her to bury him in Manila Memorial Park. The Supreme Court said that “the expressed wishes of the deceased” as to his funeral only pertains to the form of the funeral rites. Any instructions regarding the place of burial should be embodied in a testamentary disposition and must not be contrary to law, meaning…it should not contravene the wishes of those who have rightful custody over his body.

Lastly, Rosario’s estrangement cannot be taken against her as a waiver in the absence of a clear indication that she intended to do so.As the Supreme Court put it, “human compassion, more often than not, opens the door to mercy and forgiveness once a family member joins his Creator.”

(Based on G.R. No. 182894, April 22, 2014)

When A Woman Love's Another

Society and the case of degrading morality has caused infidelity issues to husbands and wife. What happens when a wife gets impregnated by someone other than her husband and the husband claims that the children born was his? Read the article below from

 Children born inside an existing marriage are legitimate, while those born outside of one are illegitimate. As the Supreme Court puts it, “There is perhaps no presumption of the law more firmly established and founded on sounder morality and more convincing reason than the presumption that children born in wedlock are legitimate.”

This presumption of legitimacy... can only be impugned by the husband or, in case the husband is already dead, by his heirs. Apart from these, nobody else, not even the mother, is allowed to question the legitimacy of a child, except to contest that the child was never hers to begin with.

Therefore, while a husband having extra-marital relations could lead to the birth of an illegitimate child, a wife having extra-marital relations could actually bring forth a new legitimate member of the family by the birth of a child not of her husband.

As demonstrated in this interesting Supreme Court case, this wrinkle in the law has significant repercussions in determining the rights of heirs.

Danilo and Carolina are married. During their marriage, Carolina gave birth to Jinkie and Jacqueline. However, the children were not Danilo’s but actually Juan’s. Juan even acknowledged in a notarized document that the children were his. On the other hand, Danilo simply kept quiet.

Juan was a very wealthy businessman with stockholdings in corporations and several real properties. When he died, Jinkie and Jacqueline filed an action seeking to get their inheritance as heirs of Juan. They presented as proof of their filiation the notarized document Juan had earlier signed.

The Supreme Court denied the petition holding that, having been born during the marriage of Danilo and Carolina, Jinkie and Jacqueline were presumed to be the legitimate children of Danilo and Carolina. Danilo, who had every right to impugn the legitimate status of Jinkie and Jacquiline did not do so within the period provided by law (one to three years from knowledge of birth of the child, depending on the circumstances), making the presumption of their legitimacy conclusive, fixed, and unassailable.

Juan’s acknowledgment of Jinkie and Jacqueline as his children through a notarized document was of no consequence because such notarized document takes the form of a collateral attack on Jinkie and Jacqueline’s status as legitimate children. This is not allowed because the proper forum to assail their legitimacy is in a separate civil action, which unfortunately, was never resorted to by Danilo, the only person allowed by law to impugn the legitimate status of the children.

Thus, Jinkie and Jacqueline cannot inherit from their wealthy biological father, Juan. They can, however, look forward to inheriting from Danilo, who in the eyes of law is their father.

(Based on G.R. No. 142877, October 2, 2001)

Tuesday, June 3, 2014

Slowing GDP Growth: Should I Sell?

As of this writing, the NEDA reported that the Philippines registered a GDP growth of just 5.7% in the first quarter of 2014.  This is much slower than the GDP growth rates reported for the first and fourth quarters of 2013 as shown below:

Source: Philippine Statistics Authority

Source: Philippine Statistics Authority

The reasons given for the slower growth are the reduction in agricultural output and consequent disruptions to the supply chain brought on by the natural calamities that hit the country as well as the prudential measures implemented in the fourth quarter of 2013 to prevent the formation of a real estate bubble.  The latter reason was greatly responsible for the slowdown in private construction, particularly in the mid-housing, high rise residential and commercial condominiums sectors.

The bright spots though were in the continued growth in the services industry, particularly in the communication and land transportation sectors as well as the mining and quarrying sectors of the manufacturing industry.  The country is also benefiting from the sustained growth in the global manufacturing industry as exports enjoyed a double-digit growth of 10.6% for the first quarter of 2014 compared to a contraction for the same period in 2013.

The question is, "Should I be selling my investments now in anticipation of a decline in market prices and in the hope of buying back at lower levels at some time in the near future?"

If you have the Size of funds to attract in-depth analysis from the large brokerage houses, the Expertise to comprehend such reports and the Time to manage your money "24/7" (or if you are all S.E.T.) then go ahead and engage in trading.  However, you should have taken on a trading stance even before the first quarter GDP growth numbers were reported.  Acting now would be too late.

That is why it is always better to have professionals manage your money if you have even just one of the S.E.T.'s lacking. Professional fund managers would have seen this slowing GDP growth coming and would have already fine-tuned their portfolios.

Professional fund managers would not have sold in a big way as they, like the NEDA, are probably still confident that the long-term growth story for the Philippines is intact. These fund managers would just have lightened up on their exposure to those sectors that would not do as well as the others, such as with certain companies in the real estate industry.

Don't forget that fund managers are always forward looking. For them, today's news was yesterday's food for thought.

Source: Efren Cruz,

Insular Group revenues reach P19.3 billion in 2013

Largest Filipino life insurer, The Insular Life Assurance Company, Ltd. reported consolidated revenues in 2013 of P19.3 billion, up by 7 percent from the previous year, with insurance revenues accounting for 65 percent of total revenues.

conso_financialAt the Annual Members' Meeting held recently at the corporate headquarters in Alabang Muntinlupa, Insular Life Chairman of the Board and Chief Executive Officer, Vicente R. Ayllon, reported on the gains of the Group led by parent company, Insular Life, which recorded a robust 40 percent increase in new business premiums to reach P7.3 billion, and 20 percent increase in total premiums amounting to P11.3 billion. This growth in both new business and total premiums was attributed to the company's strong drive for product development and product innovation, higher productivity of all its sales units across the country, and continuous improvement in its sales and customer servicing capabilities.

In 2013, Insular Life launched three structured products, Wealth Assure, a peso-denominated product where regular premium payments are required to enjoy the benefits of lifetime protection, I-Dollar Asset Plus, a structured product hinged on the performance of the Asian markets, and I-Dollar Asian Gems, a structured product hinged on Asia's emerging companies. It also offered new multiple pay investment unit-linked products Wealth Assure Education, an insurance plan that maximizes the education fund's earning potential; and I-Pinoy Pro Save, a 25-year to mature product issued on a guaranteed basis to enable overseas Filipino workers to save.

The company also reported consolidated assets up by 6 percent to P94.8 billion from P89.6 billion the previous year. It paid a total of P8.3 billion in total policy benefits, including dividends, claims, surrenders maturities and survivorship benefits.

"We also set aside P49.6 billion worth of policy reserves to pay for future claims. With a net worth of P27.9 billion, among the highest in the industry, our Company's reserves-to-business-in-force ratio now stands as the highest in the insurance industry," Ayllon reported.

The company's consolidated net income, however, dipped by 25 percent to P2.4 billion from P3.2 billion a year ago, due to the pre-termination of corporate loans of some of its borrowers, and lower dividends earned from the company's strategic investments.

"Notwithstanding our impressive sales performance in 2013, our bottom line dropped by a quarter percent because some of our corporate borrowers opted to pay their corporate loans ahead of term maturity to refinance and take advantage of the prevailing low interest rates. Also, one of our major strategic investments opted to defer paying dividends to its shareholders in order to internally finance its business expansion plans."

Early this year, Insular Life offered a limited investment product I-Peso Enrich which is a combination of life insurance, investment with 100% capital protection while participating in the upward potential of the Philippine Stock Market. It is also set to launch a number of product innovations that will give policyholders better options to grow their wealth

Insular Life is the largest Filipino life insurance company and in the top three industry-wide in terms of assets and net worth. It continuously complies with and easily passes all the annual requirements of the Insurance Commission, the regulatory body of life insurance companies in the Philippines, in terms of Margin of Solvency, Capital Investment, Reserve Investment, Minimum Statutory Net Worth and Risk Based Capital Ratio.

Saturday, May 17, 2014

Funny and Surprising Investing Theories

With all the uncertainties with stock investing, wouldn’t it be great to have something reliable to hold on to?  In the US, a number of theories have evolved about stock investing in particular and the direction of the economy in general.  Here are some of these theories.
skirtSkirt Length or Hemline Theory – The theory states that the shorter skirts become, the higher will stock prices be.  It seems that shorter skirts are associated with higher consumer confidence and apparently bolder consumer clothing preference. In contrast, ladies apparently dress with longer skirts when there is fear and gloom in the air, which sentiment also leads to bearish stock prices.  Thus far, this theory has yet to be proven.
underwear (3)
Men’s Underwear Index – While purchasing men’s underwear is anecessity, it is said that men would tend to delay their purchase of underwear when the economy is bad. Conversely, a pick up in men’s underwear sales signals a growing economy. According to Investopedia, no less than former US Federal Reserve Chairman Alan Greenspan subscribed to this theory.
There are many factors involved in men buying underwear.  To begin with, women’s habits in purchasing underwear for their men can mess up the index.  Men are also known to hold back from buying underwear until these articles of clothing develop “bacon” garters.
waitressHot Waitress Economic Index – The index states that the higher the number of attractive servers there are, the weaker will the economy be.  The reasoning is that attractive people find it easier to land higher paying jobs during good economic times.  In bad economic times, these lovely people will find it harder to find higher paying jobs and will be compelled to apply for lower paying ones like waiting on tables.
The index is not only insulting but also discriminatory.  Moreover, traditional economic theory contends that employment is a lagging indicator.
lipstick (3)Leading Lipstick Indicator – The indicator was coined by no less than Leonard Lauder, the chairman of Estee Lauder. The indicator says that women tend to resort to less expensive indulgences, such as lipstick in times of uncertainty.  And surprisingly, this indicator had been fairly accurate in the past.
My take on these indicators is that nothing beats solid macro and micro fundamental studies backed by shrewd technical analyses and performed with a cold heart (i.e. without emotions).  More importantly, these indicators and indexes were created in an American culture and as much may not be as applicable in other countries.