Discount Rates for Non-Life Insurance Policy Reserves as of 30 September 2016

October 10, 2016 INSURANCE CIRCULAR LETTER NO. 059-16 Supplements: CL No. 2015-32 TO : All Non-Life Insurance and Professional Reinsurance Companies Doing Business in the Philippines SUBJECT : Discount Rates for Non-Life Insurance Policy Reserves as of 30 September 2016 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 30 September 2016 which will be used in discounting the cash flows in the calculation of policy reserves as of 30 September 2016. EcTCAD 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.) EMMANUEL F. DOOC Insurance Commissioner ANNEX A Peso Spot and Forward Rates as of 30 September 2016 Tenor/Term Spot Rate Forward Tenor/Term Spot Rate Forward (in years) Rate (in years) Rate 1 2 0208% 2 0208% 51 5 2145% 4 9484% 2 2 3018% 2 5835% 52 5 2094% 4 9484% 3 3 3575% 5 5019% 53 5 2045% 4 9484% 4 2 9065% 1 5652% 54 5 1997% 4 9484% 5 3 7305% 7 0928% 55 5 1951% 4 9484% 6 3 6156% 3 0430% 56 5 1907% 4 9484% 7 3 5042% 2 8385% 57 5 1865% 4 9484% 8 3 5773% 4 0906% 58 5 1824% 4 9484% 9 3 6519% 4 2506% 59 5 1784% 4 9484% 10 3 7281% 4 4158% 60 5 1745% 4 9484% 11 3 8493% 5 0700% 61 5 1708% 4 9484% 12 3 9735% 5 3495% 62 5 1672% 4 9484% 13 4 1010% 5 6432% 63 5 1638% 4 9484% 14 4 2323% 5 9534% 64 5 1604% 4 9484% 15 4 3677% 6 2827% 65 5 1571% 4 9484% 16 4 5080% 6 6342% 66 5 1540% 4 9484% 17 4 6536% 7 0117% 67 5 1509% 4 9484% 18 4 8054% 7 4198% 68 5 1479% 4 9484% 19 4 9642% 7 8643% 69 5 1450% 4 9484% 20 5 1311% 8 3524% 70 5 1422% 4 9484% 21 5 5959% 15 3358% 71 5 1395% 4 9484% 22 5 5663% 4 9484% 72 5 1368% 4 9484% 23 5 5394% 4 9484% 73 5 1342% 4 9484% 24 5 5147% 4 9484% 74 5 1317% 4 9484% 25 5 4920% 4 9484% 75 5 1293% 4 9484% 26 5 4710% 4 9484% 76 5 1269% 4 9484% 27 5 4516% 4 9484% 77 5 1246% 4 9484% 28 5 4336% 4 9484% 78 5 1223% 4 9484% 29 5 4169% 4 9484% 79 5 1201% 4 9484% 30 5 4012% 4 9484% 80 5 1180% 4 9484% 31 5 3866% 4 9484% 81 5 1159% 4 9484% 32 5 3728% 4 9484% 82 5 1138% 4 9484% 33 5 3600% 4 9484% 83 5 1118% 4 9484% 34 5 3478% 4 9484% 84 5 1099% 4 9484% 35 5 3364% 4 9484% 85 5 1080% 4 9484% 36 5 3256% 4 9484% 86 5 1061% 4 9484% 37 5 3154% 4 9484% 87 5 1043% 4 9484% 38 5 3057% 4 9484% 88 5 1025% 4 9484% 39 5 2965% 4 9484% 89 5 1008% 4 9484% 40 5 2878% 4 9484% 90 5 0991% 4 9484% 41 5 2795% 4 9484% 91 5 0974% 4 9484% 42 5 2716% 4 9484% 92 5 0958% 4 9484% 43 5 2641% 4 9484% 93 5 0942% 4 9484% 44 5 2569% 4 9484% 94 5 0927% 4 9484% 45 5 2500% 4 9484% 95 5 0912% 4 9484% 46 5 2435% 4 9484% 96 5 0897% 4 9484% 47 5 2372% 4 9484% 97 5 0882% 4 9484% 48 5 2312% 4 9484% 98 5 0868% 4 9484% 49 5 2254% 4 9484% 99 5 0854% 4 9484% 50 5 2198% 4 9484% 100 5 0840% 4 9484% ANNEX B Dollar Spot and Forward Rates as of 30 September 2016 Dollar Spot and Forward Rates as of 30 September 2016 Tenor/Term Spot Rate Forward Tenor/Term Spot Rate Forward (in years) Rate (in years) Rate 1 1 3848% 1 3848% 51 3 8403% 3 6699% 2 1 4740% 1 5634% 52 3 8370% 3 6699% 3 1 6511% 2 0062% 53 3 8339% 3 6699% 4 1 8382% 2 4016% 54 3 8308% 3 6699% 5 2 0136% 2 7193% 55 3 8279% 3 6699% 6 2 1682% 2 9434% 56 3 8251% 3 6699% 7 2 3249% 3 2700% 57 3 8223% 3 6699% 8 2 4427% 3 2714% 58 3 8197% 3 6699% 9 2 5546% 3 4542% 59 3 8172% 3 6899% 10 2 6768% 3 7829% 60 3 8147% 3 6699% 11 2 7882% 3 9094% 61 3 8123% 3 6699% 12 2 9020% 4 1624% 62 3 8100% 3 6699% 13 3 0185% 4 4258% 63 3 8078% 3 6699% 14 3 1377% 4 7010% 64 3 8057% 3 6699% 15 3 2602% 4 9899% 65 3 8036% 3 6699% 16 3 2640% 3 3211% 66 3 8015% 3 6699% 17 3 2689% 3 3470% 67 3 7996% 3 6699% 18 3 2747% 3 3736% 68 3 7977% 3 6699% 19 3 2813% 3 4008% 69 3 7958% 3 6699% 20 3 2887% 3 4287% 70 3 7940% 3 6699% 21 4 0841% 21 3440% 71 3 7923% 3 6699% 22 4 0653% 3 6699% 72 3 7906% 3 6699% 23 4 0480% 3 6699% 73 3 7889% 3 6699% 24 4 0323% 3 6699% 74 3 7873% 3 6699% 25 4 0177% 3 6699% 75 3 7857% 3 6699% 26 4 0043% 3 6699% 76 3 7842% 3 6699% 27 3 9919% 3 6699% 77 3 7827% 3 6699% 28 3 9804% 3 6699% 78 3 7813% 3 6699% 29 3 9697% 3 6699% 79 3 7799% 3 6699% 30 3 9597% 3 6699% 80 3 7785% 3 6699% 31 3 9503% 3 6699% 81 3 7772% 3 6699% 32 3 9416% 3 6699% 82 3 7759% 3 6699% 33 3 9333% 3 6699% 83 3 7746% 3 6699% 34 3 9256% 3 6699% 84 3 7733% 3 6699% 35 3 9182% 3 6699% 85 3 7721% 3 6699% 36 3 9113% 3 6699% 86 3 7709% 3 6699% 37 3 9048% 3 6699% 87 3 7698% 3 6699% 38 3 8986% 3 6699% 88 3 7686% 3 6699% 39 3 8928% 3 6699% 89 3 7675% 3 6699% 40 3 8872% 3 6699% 90 3 7664% 3 6699% 41 3 8819% 3 6699% 91 3 7654% 3 6699% 42 3 8768% 3.67% 92 3 7643% 3 6699% 43 3 8720% 3 6699% 93 3 7633% 3 6699% 44 3 8674% 3 6699% 94 3 7623% 3 6699% 45 3 8630% 3 6699% 95 3 7614% 3 6699% 46 3 8588% 3 6699% 96 3 7604% 3 6699% 47 3 8548% 3 6699% 97 3 7595% 3 6699% 48 3 8509% 3 6699% 98 3 7586% 3 6699% 49 3 8472% 3 6699% 99 3 7577% 3 6699% 50 3 8437% 3 6699% 100 3 7568% 3 6699%