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

April 4, 2016 INSURANCE CIRCULAR LETTER NO. 021-16 Supplements: CL No. 2014-42-A 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 March 2016 Pursuant to Item IV (1) of IC Circular Letter No. 2015-42-A entitled Valuation Standards for Life Insurance Policy Reserves , attached hereto are the schedules of Peso and Dollar Spot and Forward rates as of 31 March 2016 which will be used in discounting the cash flows in the calculation of policy reserves as of 31 March 2016. 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. HTcADC (SGD.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A Peso Spot and Forward Rates as of 31 March 2016 Tenor/Term Forward Tenor/Term Forward (in years) Spot Rate Rate (in years) Spot Rate Rate 1 1.7388% 1.7388% 51 5.4378% 5.3001% 2 3.5315% 5.3557% 52 5.4351% 5.3001% 3 3.7549% 4.2032% 53 5.4326% 5.3001% 4 3.2562% 1.7743% 54 5.4301% 5.3001% 5 3.5021% 4.4916% 55 5.4278% 5.3001% 6 3.9339% 6.1201% 56 5.4255% 5.3001% 7 4.3800% 7.0970% 57 5.4233% 5.3001% 8 4.5555% 5.7924% 58 5.4212% 5.3001% 9 4.7372% 6.2024% 59 5.4191% 5.3001% 10 4.9256% 6.6362% 60 5.4171% 5.3001% 11 4.9833% 5.5620% 61 5.4152% 5.3001% 12 5.0445% 5.7199% 62 5.4134% 5.3001% 13 5.1089% 5.8852% 63 5.4116% 5.3001% 14 5.1765% 6.0588% 64 5.4098% 5.3001% 15 5.2471% 6.2417% 65 5.4081% 5.3001% 16 5.3210% 6.4352% 66 5.4065% 5.3001% 17 5.3982% 6.6404% 67 5.4049% 5.3001% 18 5.4788% 6.8592% 68 5.4034% 5.3001% 19 5.5632% 7.0932% 69 5.4019% 5.3001% 20 5.6515% 7.3447% 70 5.4004% 5.3001% 21 5.6348% 5.3001% 71 5.3990% 5.3001% 22 5.6195% 5.3001% 72 5.3976% 5.3001% 23 5.6056% 5.3001% 73 5.3963% 5.3001% 24 5.5929% 5.3001% 74 5.3950% 5.3001% 25 5.5812% 5.3001% 75 5.3937% 5.3001% 26 5.5703% 5.3001% 76 5.3925% 5.3001% 27 5.5603% 5.3001% 77 5.3913% 5.3001% 28 5.5510% 5.3001% 78 5.3901% 5.3001% 29 5.5424% 5.3001% 79 5.3890% 5.3001% 30 5.5343% 5.3001% 80 5.3879% 5.3001% 31 5.5267% 5.3001% 81 5.3868% 5.3001% 32 5.5196% 5.3001% 82 5.3857% 5.3001% 33 5.5130% 5.3001% 83 5.3847% 5.3001% 34 5.5067% 5.3001% 84 5.3837% 5.3001% 35 5.5008% 5.3001% 85 5.3827% 5.3001% 36 5.4952% 5.3001% 86 5.3817% 5.3001% 37 5.4899% 5.3001% 87 5.3808% 5.3001% 38 5.4849% 5.3001% 88 5.3799% 5.3001% 39 5.4802% 5.3001% 89 5.3790% 5.3001% 40 5.4757% 5.3001% 90 5.3781% 5.3001% 41 5.4714% 5.3001% 91 5.3773% 5.3001% 42 5.4673% 5.3001% 92 5.3764% 5.3001% 43 5.4634% 5.3001% 93 5.3756% 5.3001% 44 5.4597% 5.3001% 94 5.3748% 5.3001% 45 5.4562% 5.3001% 95 5.3740% 5.3001% 46 5.4528% 5.3001% 96 5.3732% 5.3001% 47 5.4495% 5.3001% 97 5.3725% 5.3001% 48 5.4464% 5.3001% 98 5.3717% 5.3001% 49 5.4434% 5.3001% 99 5.3710% 5.3001% 50 5.4405% 5.3001% 100 5.3703% 5.3001% ANNEX B Dollar Spot and Forward Rates as of 31 March 2016 Tenor/Term Forward Tenor/Term Spot Forward (in years) Spot Rate Rate (in years) Rate Rate 1 0.7323% 0.7323% 51 3.4494% 3.3760% 2 1.0307% 1.3299% 52 3.4480% 3.3760% 3 1.3317% 1.9364% 53 3.4467% 3.3760% 4 1.5984% 2.4027% 54 3.4454% 3.3760% 5 1.8202% 2.7123% 55 3.4441% 3.3760% 6 2.0600% 3.2674% 56 3.4429% 3.3760% 7 2.3042% 3.7822% 57 3.4417% 3.3760% 8 2.5538% 4.3179% 58 3.4406% 3.3760% 9 2.8096% 4.8794% 59 3.4395% 3.3760% 10 2.6930% 1.6494% 60 3.4384% 3.3760% 11 2.8386% 4.3054% 61 3.4374% 3.3760% 12 2.9876% 4.6411% 62 3.4364% 3.3760% 13 3.1405% 4.9934% 63 3.4354% 3.3760% 14 3.2978% 5.3650% 64 3.4345% 3.3760% 15 3.4601% 5.7593% 65 3.4336% 3.3760% 16 3.4774% 3.7361% 66 3.4327% 3.3760% 17 3.4961% 3.7961% 67 3.4319% 3.3760% 18 3.5162% 3.8580% 68 3.4311% 3.3760% 19 3.5375% 3.9218% 69 3.4303% 3.3760% 20 3.5599% 3.9877% 70 3.4295% 3.3760% 21 3.5517% 3.3870% 71 3.4288% 3.3760% 22 3.5443% 3.3883% 72 3.4280% 3.3760% 23 3.5375% 3.3896% 73 3.4273% 3.3760% 24 3.5314% 3.3909% 74 3.4266% 3.3760% 25 3.5258% 3.3922% 75 3.4259% 3.3760% 26 3.5201% 3.3760% 76 3.4253% 3.3760% 27 3.5147% 3.3760% 77 3.4246% 3.3760% 28 3.5098% 3.3760% 78 3.4240% 3.3760% 29 3.5052% 3.3760% 79 3.4234% 3.3760% 30 3.5009% 3.3760% 80 3.4228% 3.3760% 31 3.4968% 3.3760% 81 3.4222% 3.3760% 32 3.4931% 3.3760% 82 3.4217% 3.3760% 33 3.4895% 3.3760% 83 3.4211% 3.3760% 34 3.4862% 3.3760% 84 3.4206% 3.3760% 35 3.4830% 3.3760% 85 3.4201% 3.3760% 36 3.4800% 3.3760% 86 3.4196% 3.3760% 37 3.4772% 3.3760% 87 3.4191% 3.3760% 38 3.4746% 3.3760% 88 3.4186% 3.3760% 39 3.4720% 3.3760% 89 3.4181% 3.3760% 40 3.4696% 3.3760% 90 3.4176% 3.3760% 41 3.4673% 3.3760% 91 3.4172% 3.3760% 42 3.4652% 3.3760% 92 3.4167% 3.3760% 43 3.4631% 3.3760% 93 3.4163% 3.3760% 44 3.4611% 3.3760% 94 3.4158% 3.3760% 45 3.4592% 3.3760% 95 3.4154% 3.3760% 46 3.4574% 3.3760% 96 3.4150% 3.3760% 47 3.4557% 3.3760% 97 3.4146% 3.3760% 48 3.4540% 3.3760% 98 3.4142% 3.3760% 49 3.4524% 3.3760% 99 3.4138% 3.3760% 50 3.4509% 3.3760% 100 3.4135% 3.3760%