A Message from the President
Economic data and figures of the financial services sector for 2008 have been severely affected on account of the global financial crisis. Almost all of the first world countries and some tiger economists of Asia have registered negative gross rates with the exception of Indonesia, Vietnam and the Philippines.
Our sound economic fundamentals which made us resilient in the face of this crisis have propelled the Philippine economy with a growth rate of approximately 4% in 2008.
THE FINANCIAL
In spite of this financial crisis, our company performed reasonably well in 2008. Our underwriting performance showed a minimal increase of 6% on gross premium from Php187M in 2007 to Php193M in 2008.
Likewise, the net income of our company was Php7.5M which registered a decrease of 31% over 2007 income of Php10M. The decrease was due to low interest rates and increase in the operating expenses.
Our investment in 2008 totaled Php83M compared to Php78M in 2007 or an increase of Php5M.
Our total assets now amount to Php417.3M.
OUTLOOK AND STRATEGIES FOR 2009 & 2010
While there are some misgivings about the possible effects of the financial meltdown, your company’s management team will continue to exert effort in preserving our corporate accounts and embark on a program of increasing our retail business. Our underwriting operations will be geared towards efficiency and profitability. While our income on reinsurance will definitely be affected due to our friendly competitors increasing their retention limits, we will continue to look for better reinsurance program that will cater to our traditional and non-traditional, as well as our other innovative product lines.
We share the expectation that in spite of this crisis, we will continue to work hard and achieve our company’s goal and profitability.
To all our Stakeholders and Shareholders, we wish to extend to you our thanks for the continued support that you have given to the Management and Staff of your company.
DIONISIO M. DUNGCA, JR.
President
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