Insurance Circular Letter No. 001-16

January 7, 2016 INSURANCE CIRCULAR LETTER NO. 001-16 Supplements: CL No. 2015-32 TO : All Non-Life Insurance Companies and Professional Reinsurance Companies Doing Business in the Philippines SUBJECT : Discount Rates for Non-Life Insurance Policy Reserves as of 31 December 2015 Pursuant to Item 10 of IC Circular Letter No. 2015-32 entitled Valuation Standards for Non-Life Insurance Policy Reserves, attached hereto are the schedules of Peso and Dollar Spot and Forward rates as of 29 December 2015 which will be used for discounting the cash flows in the calculation of policy reserves as of 31 December 2015. The Peso spot and forward rates derived from the PDST-R2 rates and the Dollar spot and forward rates derived from the International Yield Curve from Bloomberg, shall be used for Peso-denominated and US Dollar-denominated policies, respectively. Please be guided accordingly. ASEcHI (SGD.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A Peso Spot and Forward Rates as of December 29, 2015 Tenor/Term Forward Tenor/Term Forward (in years) Spot Rate Rate (in years) Spot Rate Rate 1 2.3851% 2.3851% 51 4.9290% 4.9514% 2 4.0579% 5.7581% 52 4.9294% 4.9514% 3 3.7041% 3.0001% 53 4.9298% 4.9514% 4 3.9321% 4.6191% 54 4.9302% 4.9514% 5 3.9836% 4.1899% 55 4.9306% 4.9514% 6 4.3577% 6.2484% 56 4.9310% 4.9514% 7 4.7435% 7.0887% 57 4.9313% 4.9514% 8 4.5321% 3.0638% 58 4.9317% 4.9514% 9 4.3260% 2.6920% 59 4.9320% 4.9514% 10 4.1238% 2.3217% 60 4.9323% 4.9514% 11 4.3055% 6.1391% 61 4.9327% 4.9514% 12 4.4917% 6.5620% 62 4.9330% 4.9514% 13 4.6835% 7.0139% 63 4.9332% 4.9514% 14 4.8823% 7.5002% 64 4.9335% 4.9514% 15 5.0891% 8.0280% 65 4.9338% 4.9514% 16 5.3055% 8.6060% 66 4.9341% 4.9514% 17 5.5333% 9.2458% 67 4.9343% 4.9514% 18 5.7746% 9.9622% 68 4.9346% 4.9514% 19 6.0321% 10.7751% 69 4.9348% 4.9514% 20 6.3091% 11.7118% 70 4.9351% 4.9514% 21 5.9960% -0.0763% 71 4.9353% 4.9514% 22 5.7007% -0.3139% 72 4.9355% 4.9514% 23 5.4215% -0.5379% 73 4.9357% 4.9514% 24 5.1569% -0.7489% 74 4.9360% 4.9514% 25 4.9056% -0.9472% 75 4.9362% 4.9514% 26 4.9074% 4.9514% 76 4.9364% 4.9514% 27 4.9090% 4.9514% 77 4.9366% 4.9514% 28 4.9105% 4.9514% 78 4.9367% 4.9514% 29 4.9120% 4.9514% 79 4.9369% 4.9514% 30 4.9133% 4.9514% 80 4.9371% 4.9514% 31 4.9145% 4.9514% 81 4.9373% 4.9514% 32 4.9157% 4.9514% 82 4.9375% 4.9514% 33 4.9167% 4.9514% 83 4.9376% 4.9514% 34 4.9178% 4.9514% 84 4.9378% 4.9514% 35 4.9187% 4.9514% 85 4.9380% 4.9514% 36 4.9196% 4.9514% 86 4.9381% 4.9514% 37 4.9205% 4.9514% 87 4.9383% 4.9514% 38 4.9213% 4.9514% 88 4.9384% 4.9514% 39 4.9221% 4.9514% 89 4.9386% 4.9514% 40 4.9228% 4.9514% 90 4.9387% 4.9514% 41 4.9235% 4.9514% 91 4.9388% 4.9514% 42 4.9242% 4.9514% 92 4.9390% 4.9514% 43 4.9248% 4.9514% 93 4.9391% 4.9514% 44 4.9254% 4.9514% 94 4.9392% 4.9514% 45 4.9260% 4.9514% 95 4.9394% 4.9514% 46 4.9265% 4.9514% 96 4.9395% 4.9514% 47 4.9271% 4.9514% 97 4.9396% 4.9514% 48 4.9276% 4.9514% 98 4.9397% 4.9514% 49 4.9281% 4.9514% 99 4.9399% 4.9514% 50 4.9285% 4.9514% 100 4.9400% 4.9514% ANNEX B Dollar Spot and Forward Rates as of December 29, 2015 Tenor/Term Forward Tenor/Term Forward (in years) Spot Rate Rate (in years) Spot Rate Rate 1 0.5678% 0.5678% 51 3.9306% 3.8911% 2 1.1227% 1.6807% 52 3.9299% 3.8911% 3 1.6855% 2.8204% 53 3.9291% 3.8911% 4 2.0940% 3.3294% 54 3.9284% 3.8911% 5 2.2053% 2.6519% 55 3.9277% 3.8911% 6 2.4594% 3.7391% 56 3.9271% 3.8911% 7 2.7188% 4.2891% 57 3.9265% 3.8911% 8 2.9845% 4.8641% 58 3.9258% 3.8911% 9 3.2577% 5.4696% 59 3.9253% 3.8911% 10 3.5063% 5.7706% 60 3.9247% 3.8911% 11 3.6795% 5.4273% 61 3.9241% 3.8911% 12 3.8584% 5.8474% 62 3.9236% 3.8911% 13 4.0438% 6.2942% 63 3.9231% 3.8911% 14 4.2364% 6.7729% 64 3.9226% 3.8911% 15 4.4372% 7.2897% 65 3.9221% 3.8911% 16 4.4001% 3.8451% 66 3.9216% 3.8911% 17 4.3656% 3.8140% 67 3.9212% 3.8911% 18 4.3331% 3.7823% 68 3.9207% 3.8911% 19 4.3023% 3.7499% 69 3.9203% 3.8911% 20 4.2729% 3.7168% 70 3.9199% 3.8911% 21 4.2103% 2.9651% 71 3.9195% 3.8911% 22 4.1490% 2.8709% 72 3.9191% 3.8911% 23 4.0890% 2.7760% 73 3.9187% 3.8911% 24 4.0299% 2.6805% 74 3.9183% 3.8911% 25 3.9717% 2.5846% 75 3.9180% 3.8911% 26 3.9686% 3.8911% 76 3.9176% 3.8911% 27 3.9657% 3.8911% 77 3.9173% 3.8911% 28 3.9630% 3.8911% 78 3.9169% 3.8911% 29 3.9606% 3.8911% 79 3.9166% 3.8911% 30 3.9583% 3.8911% 80 3.9163% 3.8911% 31 3.9561% 3.8911% 81 3.9160% 3.8911% 32 3.9541% 3.8911% 82 3.9157% 3.8911% 33 3.9521% 3.8911% 83 3.9154% 3.8911% 34 3.9504% 3.8911% 84 3.9151% 3.8911% 35 3.9487% 3.8911% 85 3.9148% 3.8911% 36 3.9471% 3.8911% 86 3.9145% 3.8911% 37 3.9456% 3.8911% 87 3.9143% 3.8911% 38 3.9441% 3.8911% 88 3.9140% 3.8911% 39 3.9428% 3.8911% 89 3.9138% 3.8911% 40 3.9415% 3.8911% 90 3.9135% 3.8911% 41 3.9402% 3.8911% 91 3.9133% 3.8911% 42 3.9391% 3.8911% 92 3.9130% 3.8911% 43 3.9380% 3.8911% 93 3.9128% 3.8911% 44 3.9369% 3.8911% 94 3.9125% 3.8911% 45 3.9359% 3.8911% 95 3.9123% 3.8911% 46 3.9349% 3.8911% 96 3.9121% 3.8911% 47 3.9340% 3.8911% 97 3.9119% 3.8911% 48 3.9331% 3.8911% 98 3.9117% 3.8911% 49 3.9322% 3.8911% 99 3.9115% 3.8911% 50 3.9314% 3.8911% 100 3.9113% 3.8911%