Discount Rates for Life Insurance Policy Reserves as of 31 December 2016

January 12, 2017 INSURANCE CIRCULAR LETTER NO. 001-17 Supplements: CL No. 2016-66 TO : All Life Insurance Companies and Mutual Benefit Associations Doing Business in the Philippines SUBJECT : Discount Rates for Life Insurance Policy Reserves as of 31 December 2016 Pursuant to Item IV (1) of IC Circular Letter No. 2016-66 entitled Valuation Standards for Life Insurance Policy Reserves , attached hereto are the schedules of Peso and Dollar Spot and Forward rates as of 29 December 2016 which will be used in discounting the cash flows in the calculation of policy reserves as of 31 December 2016. cSEDTC 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. The Peso and Dollar spot and forward rates to be used for discounting cash flows with duration of more than 20 years were determined using the 2-year moving-average of the 20-year government bond yield rate. Please be guided accordingly. (SGD.) DENNIS B. FUNA Insurance Commissioner ANNEX A Peso Spot and Forward Rates as of 29 December 2016 Tenor/Term (in years) Spot Rate Forward Rate Tenor/Term (in years) Spot Rate Forward Rate 1 2.4670% 2.4670% 51 4.9925% 5.0034% 2 3.9335% 5.4209% 52 4.9927% 5.0034% 3 3.5522% 2.7939% 53 4.9929% 5.0034% 4 3.9452% 5.1332% 54 4.9931% 5.0034% 5 4.9160% 8.8907% 55 4.9933% 5.0034% 6 4.9813% 5.3081% 56 4.9935% 5.0034% 7 5.0527% 5.4827% 57 4.9937% 5.0034% 8 4.9325% 4.0946% 58 4.9938% 5.0034% 9 4.8157% 3.8861% 59 4.9940% 5.0034% 10 4.7011% 3.6750% 60 4.9941% 5.0034% 11 4.7976% 5.7680% 61 4.9943% 5.0034% 12 4.8962% 5.9868% 62 4.9944% 5.0034% 13 4.9972% 6.2170% 63 4.9946% 5.0034% 14 5.1011% 6.4603% 64 4.9947% 5.0034% 15 5.2081% 6.7184% 65 4.9949% 5.0034% 16 5.3188% 6.9937% 66 4.9950% 5.0034% 17 5.4337% 7.2886% 67 4.9951% 5.0034% 18 5.5532% 7.6064% 68 4.9952% 5.0034% 19 5.6781% 7.9508% 69 4.9953% 5.0034% 20 5.8090% 8.3268% 70 4.9955% 5.0034% 21 4.9770% -10.3558% 71 4.9956% 5.0034% 22 4.9782% 5.0034% 72 4.9957% 5.0034% 23 4.9793% 5.0034% 73 4.9958% 5.0034% 24 4.9803% 5.0034% 74 4.9959% 5.0034% 25 4.9812% 5.0034% 75 4.9960% 5.0034% 26 4.9820% 5.0034% 76 4.9961% 5.0034% 27 4.9828% 5.0034% 77 4.9962% 5.0034% 28 4.9836% 5.0034% 78 4.9963% 5.0034% 29 4.9842% 5.0034% 79 4.9964% 5.0034% 30 4.9849% 5.0034% 80 4.9965% 5.0034% 31 4.9855% 5.0034% 81 4.9965% 5.0034% 32 4.9860% 5.0034% 82 4.9966% 5.0034% 33 4.9866% 5.0034% 83 4.9967% 5.0034% 34 4.9871% 5.0034% 84 4.9968% 5.0034% 35 4.9875% 5.0034% 85 4.9969% 5.0034% 36 4.9880% 5.0034% 86 4.9969% 5.0034% 37 4.9884% 5.0034% 87 4.9970% 5.0034% 38 4.9888% 5.0034% 88 4.9971% 5.0034% 39 4.9892% 5.0034% 89 4.9972% 5.0034% 40 4.9895% 5.0034% 90 4.9972% 5.0034% 41 4.9899% 5.0034% 91 4.9973% 5.0034% 42 4.9902% 5.0034% 92 4.9974% 5.0034% 43 4.9905% 5.0034% 93 4.9974% 5.0034% 44 4.9908% 5.0034% 94 4.9975% 5.0034% 45 4.9911% 5.0034% 95 4.9976% 5.0034% 46 4.9913% 5.0034% 96 4.9976% 5.0034% 47 4.9916% 5.0034% 97 4.9977% 5.0034% 48 4.9918% 5.0034% 98 4.9977% 5.0034% 49 4.9921% 5.0034% 99 4.9978% 5.0034% 50 4.9923% 5.0034% 100 4.9978% 5.0034% ANNEX B Dollar Spot and Forward Rates as of 29 December 2016 Tenor/Term (in years) Spot Rate Forward Rate Tenor/Term (in years) Spot Rate Forward Rate 1 1.2298% 1.2298% 51 3.6249% 3.6498% 2 1.5830% 1.9374% 52 3.6254% 3.6498% 3 2.0170% 2.8906% 53 3.6259% 3.6498% 4 2.3613% 3.4011% 54 3.6263% 3.6498% 5 2.6603% 3.8651% 55 3.6267% 3.6498% 6 2.8942% 4.0716% 56 3.6271% 3.6498% 7 3.1334% 4.5806% 57 3.6275% 3.6498% 8 3.3065% 4.5266% 58 3.6279% 3.6498% 9 3.4709% 4.7956% 59 3.6283% 3.6498% 10 3.6436% 5.2108% 60 3.6287% 3.6498% 11 3.7800% 5.1542% 61 3.6290% 3.6498% 12 3.9207% 5.4804% 62 3.6293% 3.6498% 13 4.0659% 5.8246% 63 3.6297% 3.6498% 14 4.2162% 6.1898% 64 3.6300% 3.6498% 15 4.3721% 6.5796% 65 3.6303% 3.6498% 16 4.3540% 4.0833% 66 3.6306% 3.6498% 17 4.3379% 4.0797% 67 3.6309% 3.6498% 18 4.3233% 4.0759% 68 3.6311% 3.6498% 19 4.3101% 4.0721% 69 3.6314% 3.6498% 20 4.2980% 4.0682% 70 3.6317% 3.6498% 21 3.5893% -9.6147% 71 3.6319% 3.6498% 22 3.5921% 3.6498% 72 3.6322% 3.6498% 23 3.5946% 3.6498% 73 3.6324% 3.6498% 24 3.5969% 3.6498% 74 3.6327% 3.6498% 25 3.5990% 3.6498% 75 3.6329% 3.6498% 26 3.6010% 3.6498% 76 3.6331% 3.6498% 27 3.6028% 3.6498% 77 3.6333% 3.6498% 28 3.6045% 3.6498% 78 3.6335% 3.6498% 29 3.6060% 3.6498% 79 3.6337% 3.6498% 30 3.6075% 3.6498% 80 3.6339% 3.6498% 31 3.6088% 3.6498% 81 3.6341% 3.6498% 32 3.6101% 3.6498% 82 3.6343% 3.6498% 33 3.6113% 3.6498% 83 3.6345% 3.6498% 34 3.6125% 3.6498% 84 3.6347% 3.6498% 35 3.6135% 3.6498% 85 3.6349% 3.6498% 36 3.6145% 3.6498% 86 3.6351% 3.6498% 37 3.6155% 3.6498% 87 3.6352% 3.6498% 38 3.6164% 3.6498% 88 3.6354% 3.6498% 39 3.6173% 3.6498% 89 3.6356% 3.6498% 40 3.6181% 3.6498% 90 3.6357% 3.6498% 41 3.6188% 3.6498% 91 3.6359% 3.6498% 42 3.6196% 3.6498% 92 3.6360% 3.6498% 43 3.6203% 3.6498% 93 3.6362% 3.6498% 44 3.6210% 3.6498% 94 3.6363% 3.6498% 45 3.6216% 3.6498% 95 3.6365% 3.6498% 46 3.6222% 3.6498% 96 3.6366% 3.6498% 47 3.6228% 3.6498% 97 3.6367% 3.6498% 48 3.6234% 3.6498% 98 3.6369% 3.6498% 49 3.6239% 3.6498% 99 3.6370% 3.6498% 50 3.6244% 3.6498% 100 3.6371% 3.6498%