Amendments to Circular Letters

July 13, 2015 INSURANCE CIRCULAR LETTER NO. 035-15 Amending: CL No. 2015-31; CL No. 2015-32 TO : All Non-Life Insurance and Professional Reinsurance Companies Doing Business in the Philippines SUBJECT : Amendments to Circular Letters: 1. CL No. 2015-31: Transition Period and Full Implementation Requirements for Financial Reporting Framework, Valuation Standards for Insurance Policy Reserves, and New Risk-Based Capital Framework 2. CL No. 2015-32: Valuation Standards for Non-Life Insurance Policy Reserves The previously-issued Circular Letters No. 2015-31 and No. 2015-32 are hereby amended as follows: cDHAES 1. The submission of the completed Financial Reporting Template and Actuarial Valuation report as of 31 December 2014 of Non-Life Insurance and Professional Reinsurance Companies has been moved from 15 July 2015 to 31 July 2015 to coincide with the submission of the completed RBC2-QIS Template . The rest of the timelines as indicated in Circular Letter No. 2015-31 shall remain. 2. The first four (4) Actuarial Valuation reports of Non-Life Insurance and Professional Reinsurance Companies as of 31 December 2014, as of 31 March 2015, as of 30 June 2015, and as of 30 September 2015 need not be certified by an accredited Non-life Actuary. In case the Actuarial Reserve Valuation report was not prepared/certified by an accredited Non-life Actuary, the curriculum vitae of the person who prepared the Valuation report shall, likewise, be submitted. However, the Actuarial Valuation report as of 31 December 2015 and thereafter shall have to be certified by an accredited Non-Life Actuary, as required under Circular Letter No. 2015-32. 3. The "Summary of Valuation Results" labeled as Annex B in Circular Letter No. 2015-32: Valuation Standards for Non-Life Insurance Policy Reserves is hereby amended to include the reserves computed based on the old framework. Please see attached "Summary of Valuation by Line of Business" . Please be guided accordingly, (SGD.) EMMANUEL F. DOOC Insurance Commissioner ATTACHMENT Name of Company:__________________ Actuarial Valuation Results Non-Life Insurance Policy Reserves in Philippine Peso For the period ended dd/mm/yyyy Summary of Valuation by Line of Business (Based on new framework) Lines of Business 1 Fire Marine Motor Car Casualty Suretyship Premium Liabilities (1) UPR: Gross of Reinsurance _________ __________ ________ ________ ________ (2) URR: Best Estimate _________ __________ ________ ________ ________ (3) MfAD _________ __________ ________ ________ ________ (A) Total (MAX(1,2 + 3)) _________ __________ ________ ________ ________ Losses and Claims Payable _________ __________ ________ ________ ________ (4) Outstanding Claims _________ __________ ________ ________ ________ (5) IBNR: Best Estimate 2 _________ __________ ________ ________ ________ (6) Loss Adjustment _________ __________ ________ ________ ________ Expenses Payable (7) MfAD _________ __________ ________ ________ ________ (B) Total (4 + 5 + 6 +7) Policy Reserves (A + B) (A) This summary shall be accompanied by a short narrative discussing the valuation results for each class of business. (B) Kindly also submit a soft copy of your development triangles by class of business as of the indicated period above. Please see Paragraph 13, 1 of CL2015-32. (Based on old framework) Lines of Business 1 Fire Marine Motor Car Casualty Suretyship Premium Liabilities (1) UPR: Gross of Reinsurance _________ __________ ________ ________ ________ (A) Total _________ __________ ________ ________ ________ Losses and Claims Payable _________ __________ ________ ________ ________ (2) Outstanding Claims _________ __________ ________ ________ ________ (3) IBNR: Best Estimate 2 _________ __________ ________ ________ ________ (B) Total (2 + 3) Policy Reserves (A + B) (A) This summary shall be accompanied by a short narrative discussing the valuation results for each class of business ASEcHI Prepared by: _________________________ (Signature over Printed Name) Countersigned by: ______________________ ________________________ Chief Financial Officer President (Signature over Printed Name) (Signature over Printed Name) Footnotes 1. The Company may come up with a more granular categorization of its lines of business through its internal risk assessment. 2. IBNER may already be incorporated in the IBNR line item, or may appear as a separate line item, depending on the Company's discretion.