Discount Rates for Non-Life Insurance Policy Reserves

October 12, 2015 INSURANCE CIRCULAR LETTER NO. 052-15 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 Pursuant to Item 10 of the 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 September 30, 2015 which will be used in discounting the cash flows in the calculation of policy reserves as of September 30, 2015. cTDaEH 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. (SGD.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A Peso Spot and Forward Rates as of September 30, 2015 Tenor/Term Spot Forward Tenor/Term Spot Forward (in years) Rate Rate (in years) Rate Rate 1 2.5629% 2.5629% 51 4.8370% 4.7839% 2 2.6323% 2.7017% 52 4.8360% 4.7839% 3 3.1421% 4.1693% 53 4.8350% 4.7839% 4 3.8134% 5.8537% 54 4.8341% 4.7839% 5 3.5443% 2.4746% 55 4.8332% 4.7839% 6 3.9186% 5.8110% 56 4.8323% 4.7839% 7 4.3044% 6.6494% 57 4.8314% 4.7839% 8 4.1463% 3.0458% 58 4.8306% 4.7839% 9 3.9922% 2.7680% 59 4.8298% 4.7839% 10 3.8410% 2.4899% 60 4.8291% 4.7839% 11 4.0076% 5.6888% 61 4.8283% 4.7839% 12 4.1784% 6.0751% 62 4.8276% 4.7839% 13 4.3541% 6.4855% 63 4.8269% 4.7839% 14 4.5356% 6.9245% 64 4.8262% 4.7839% 15 4.7240% 7.3975% 65 4.8256% 4.7839% 16 4.9204% 7.9114% 66 4.8250% 4.7839% 17 5.1262% 8.4747% 67 4.8243% 4.7839% 18 5.3431% 9.0985% 68 4.8237% 4.7839% 19 5.5729% 9.7973% 69 4.8232% 4.7839% 20 5.8183% 10.5903% 70 4.8226% 4.7839% 21 5.6181% 1.6917% 71 4.8221% 4.7839% 22 5.4261% 1.4744% 72 4.8215% 4.7839% 23 5.2416% 1.2630% 73 4.8210% 4.7839% 24 5.0638% 1.0579% 74 4.8205% 4.7839% 25 4.8923% 0.8593% 75 4.8200% 4.7839% 26 4.8882% 4.7839% 76 4.8196% 4.7839% 27 4.8843% 4.7839% 77 4.8191% 4.7839% 28 4.8807% 4.7839% 78 4.8186% 4.7839% 29 4.8774% 4.7839% 79 4.8182% 4.7839% 30 4.8743% 4.7839% 80 4.8178% 4.7839% 31 4.8713% 4.7839% 81 4.8173% 4.7839% 32 4.8686% 4.7839% 82 4.8169% 4.7839% 33 4.8660% 4.7839% 83 4.8165% 4.7839% 34 4.8636% 4.7839% 84 4.8162% 4.7839% 35 4.8613% 4.7839% 85 4.8158% 4.7839% 36 4.8592% 4.7839% 86 4.8154% 4.7839% 37 4.8572% 4.7839% 87 4.8150% 4.7839% 38 4.8552% 4.7839% 88 4.8147% 4.7839% 39 4.8534% 4.7839% 89 4.8143% 4.7839% 40 4.8517% 4.7839% 90 4.8140% 4.7839% 41 4.8500% 4.7839% 91 4.8137% 4.7839% 42 4.8484% 4.7839% 92 4.8133% 4.7839% 43 4.8469% 4.7839% 93 4.8130% 4.7839% 44 4.8455% 4.7839% 94 4.8127% 4.7839% 45 4.8441% 4.7839% 95 4.8124% 4.7839% 46 4.8428% 4.7839% 96 4.8121% 4.7839% 47 4.8416% 4.7839% 97 4.8118% 4.7839% 48 4.8404% 4.7839% 98 4.8115% 4.7839% 49 4.8392% 4.7839% 99 4.8113% 4.7839% 50 4.8381% 4.7839% 100 4.8110% 4.7839% ANNEX B Dollar Spot and Forward Rates as of September 30, 2015 Tenor/Term Spot Forward Tenor/Term Spot Forward (in years) Rate Rate (in years) Rate Rate 1 0.8096% 0.8096% 51 3.9515% 3.9095% 2 1.2831% 1.7588% 52 3.9507% 3.9095% 3 1.7628% 2.7289% 53 3.9499% 3.9095% 4 2.1318% 3.2470% 54 3.9491% 3.9095% 5 2.4498% 3.7318% 55 3.9484% 3.9095% 6 2.6529% 3.6744% 56 3.9477% 3.9095% 7 2.8604% 4.1139% 57 3.9471% 3.9095% 8 3.0727% 4.5710% 58 3.9464% 3.9095% 9 3.2904% 5.0493% 59 3.9458% 3.9095% 10 3.4788% 5.1901% 60 3.9452% 3.9095% 11 3.6424% 5.2928% 61 3.9446% 3.9095% 12 3.8112% 5.6857% 62 3.9440% 3.9095% 13 3.9857% 6.1025% 63 3.9435% 3.9095% 14 4.1666% 6.5475% 64 3.9429% 3.9095% 15 4.3548% 7.0261% 65 3.9424% 3.9095% 16 4.3377% 4.0808% 66 3.9419% 3.9095% 17 4.3227% 4.0838% 67 3.9414% 3.9095% 18 4.3096% 4.0869% 68 3.9410% 3.9095% 19 4.2981% 4.0901% 69 3.9405% 3.9095% 20 4.2878% 4.0934% 70 3.9401% 3.9095% 21 4.2269% 3.0167% 71 3.9396% 3.9095% 22 4.1674% 2.9255% 72 3.9392% 3.9095% 23 4.1091% 2.8335% 73 3.9388% 3.9095% 24 4.0517% 2.7409% 74 3.9384% 3.9095% 25 3.9952% 2.6478% 75 3.9380% 3.9095% 26 3.9919% 3.9095% 76 3.9377% 3.9095% 27 3.9888% 3.9095% 77 3.9373% 3.9095% 28 3.9860% 3.9095% 78 3.9369% 3.9095% 29 3.9834% 3.9095% 79 3.9366% 3.9095% 30 3.9809% 3.9095% 80 3.9363% 3.9095% 31 3.9786% 3.9095% 81 3.9359% 3.9095% 32 3.9764% 3.9095% 82 3.9356% 3.9095% 33 3.9744% 3.9095% 83 3.9353% 3.9095% 34 3.9725% 3.9095% 84 3.9350% 3.9095% 35 3.9707% 3.9095% 85 3.9347% 3.9095% 36 3.9690% 3.9095% 86 3.9344% 3.9095% 37 3.9674% 3.9095% 87 3.9341% 3.9095% 38 3.9659% 3.9095% 88 3.9338% 3.9095% 39 3.9644% 3.9095% 89 3.9335% 3.9095% 40 3.9630% 3.9095% 90 3.9333% 3.9095% 41 3.9617% 3.9095% 91 3.9330% 3.9095% 42 3.9605% 3.9095% 92 3.9328% 3.9095% 43 3.9593% 3.9095% 93 3.9325% 3.9095% 44 3.9582% 3.9095% 94 3.9323% 3.9095% 45 3.9571% 3.9095% 95 3.9320% 3.9095% 46 3.9560% 3.9095% 96 3.9318% 3.9095% 47 3.9551% 3.9095% 97 3.9316% 3.9095% 48 3.9541% 3.9095% 98 3.9313% 3.9095% 49 3.9532% 3.9095% 99 3.9311% 3.9095% 50 3.9523% 3.9095% 100 3.9309% 3.9095%