Home Blog Page 10508

Enjoying a festival of friendship

By Cecille Santillan-Visto

Concert Review
K-Pop World Music Festival 2019 in Manila
June 9
SM MOA Arena

AS THE Philippines and Korea commemorated the 70th anniversary of diplomatic relations, yet another festival was held recently to celebrate the close ties between the two countries.

With both nations known for their passion for entertainment and the arts, what better way to mark the milestone than through a music festival, particularly a K-pop concert?

Solo acts Sohee and Kim Donghan, girl groups Elris and Red Velvet, and boy band NCT 127 joined forces to entertain the fans who trooped to the SM Mall of Asia Arena for the epic show, put together by All Access Production.

Hosted by Korean celebrity Ryan Bang, the three-hour extravaganza did not only showcase the talents of the K-pop idols but also had some interesting sidelights, including the public fangirling of megastar Sharon Cuneta, a self-confessed follower of the group, NCT 127.

The concert started slow and easy with Sohee, also a member of Elris, dishing the opening song “Mannequin.” Sohee, who had the unenviable task of going first, was initially tentative in her moves but found her footing in “Spotlight,” and finally gaining momentum in “Hurry Up.”

Sohee, who donned a fiery red number, is familiar to Filipinos as she was a contestant in the show K-Pop Star 6: The Last Chance, which was shown on Philippine cable TV. Prior to Elris, she formed a temporary group called KWINs with Kriesha Tiu, a Filipino singer based in Korea, and another Korean aspirant.

Sohee’s performance was followed by the five-song set of Kim Donghan, another product of the reality talent show Produce 101 Season 2. Although he later debuted with boy band, JBJ, he launched his solo career in June 2018.

Unquestionably a talented dancer, Donghan’s moves in “Sunset,” “Goodnight Kiss,” “Focus,” “Idea,” and “Ain’t No Time” were captivating but his vocals left much to be desired.

Girl group Elris has five members but aside from Sohee, only Yukyung, Hyeseong, and Karin managed to perform. Bella emerged onstage visibly injured and wearing a bandage on her leg.

Although they were only four, Elris managed to deliver to the audience’s delight. They included in their repertoire “Summer Dream” and “We, First.” Although the main stage — as well as the extended stage — seemed too big for just the four of them, they owned the MOA Arena with “Heart Bank,” “Will Be Mine,” and their last song, “Pow Pow.”

But when NCT 127 appeared, it was clear that they were one the most awaited act. Taeyong, Taeil, Yuta, Jaehyun, Winwin, Mark, Jungwoo and Haechan, joined by new members Johnny and DoYoung, were vocally impressive and their choreography was on point in “Fire Truck,” “Cherry Bomb,” and “Simon Says.”

Their rendition of “Regular” and “Super Human” also demonstrated why they are one of the K-pop to reckon with.

The main stars, however, were Red Velvet. Although the girls had visited the Philippines in April 2015, they have yet to hold a solo concert in Manila. Their fans eagerly sang with them during their five-song set, obviously missing the girls who took more than four years to return.

Red Velvet was no less than explosive when they performed “Red Flavor,” “Power Up,” and the ballad “Moonlight Melody.”

At the rate Filipinos are enticed by the Korean entertainment industry, especially K-pop and K-drama, more events similar to the K-Pop World Music Festivals are expected to be held in the Philippines. As it is, there is at least one K-pop concert in the country a month. Counting the regular fan meetings of K-celebrities, there is an inundation of everything Korean.

The synergy is great for each other’s economies and deepen the bonds that took root 70 years ago.

Now, that is the kind of friendship worth celebrating.

IC requires adjusters to get APAC, PILA endorsement

THE INSURANCE Commission (IC) is now requiring new insurance adjusters to secure endorsement from two associations related to the industry.

The IC said in a circular letter posted on its website on June 17 that all insurance adjusters intending to do business in the country must furnish an endorsement from either the Association of Philippine Adjustment Companies (APAC) and Philippine Institute of Loss Adjusters (PILA).

“Endorsement from the said adjusters associations must be attached together with the application for license of insurance adjusters and be submitted to the Licensing Division,” the IC said.

“This new requirement will ensure that integrity, honesty and ethical business practiced are observed in the insurance adjuster business in the country,” Insurance Commissioner Dennis B. Funa was quoted as saying in a separate statement.

Insurance adjusters are tasked to investigate the validity and extent of claims.

According to the circular letter, APAC and PILA shall “determine the applicant’s qualifications based on standards set by respective association, and shall endorse the qualified applicant to the IC.”

However, the regulatory body noted that membership or non-payment of association dues to the claims adjustment organizations shall not hinder the approval of endorsement from APAC and PILA.

“While the new regulation requires a favorable endorsement from APAC and PILA, the Insurance Commission, as the ultimate decision-making authority for approving an adjuster’s license, may direct the issuance of the license even without the endorsement if we find that the non-endorsement unjustified,” said Mr. Funa.

APAC and PILA are the two organizations of claims adjustment professionals in the country. PILA is an individual membership while APAC is a company membership.

Sought for comment, Philippine Insurers and Reinsurers Association, Inc. Executive Director Michael F. Rellosa welcomed the move of the IC.

“This is fine as this will help professionalize the adjusting industry even more,” Mr. Rellosa told BusinessWorld in a text message.

He added that membership into an association “bodes well for them as best practices can be institutionalized.”

Under the Insurance Code, no person shall act as an adjuster, acting in behalf of either the insurance firm or the insured, unless authorized by the IC. — Karl Angelo N. Vidal

Your Weekend Guide (June 21, 2019)

Frederick Peralta trunk sale

BEAUTIFUL vintage creations by couturier Frederick Peralta — from gowns and dresses to suits, all in mint condition — are on sale daily from 7 a.m. to 7 p.m. at The Hub at Marriott Manila until June 23. Gowns can be had for P8,000, men’s suits for P2,500, shoes for P250 and more. All proceeds from the sale will go to a fund to support designer’s recovery from a stroke he suffered last year.

Virgin Labfest 15

VIRIGIN LABFEST 15 — the 15th iteration of the annual theater festival which focuses on unpublished, untried, and unstaged one-act plays — is ongoing until July 7 at various venues in the Cultural Center of the Philippines (CCP) complex. The lineup includes 12 one-act plays and four sets of staged readings. Tickets are available at the CCP Box Office and TicketWorld (www.ticketworld.com.ph, 891-9999). For ticketing information, call the CCP Marketing Department at 832-3706 or 832-3704 or e-mail the Sales and Promotions Division at ccpsalesandpromo@gmail.com.

Noli me Tangere opera

BASED on the great novel by National Hero Dr. Jose P. Rizal, and written by the late National Artists Felipe de Leon (music) and Guillermo Tolentino (libretto in Filipino), the opera will have performances on June 21, 22, and 23 at the Tanghalang Nicanor Abelardo in Cultural Center of the Philippines. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Beautiful: The Carole King Musical

BASED on the true story of Carole King’s remarkable journey from teenage songwriter to rock ‘n’ roll legend, Beautiful features classic songs such as “You’ve Got a Friend,” “One Fine Day,” “So Far Away,” “Will You Still Love Me Tomorrow,” and “Natural Woman.” Beautiful: The Carole King Musical, a production of Atlantis Twenty, will run until July 7 at the Meralco Theater, Pasig City. It stars Kayla Rivera and Nick Varricchio, and is directed by Bobby Garcia. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Swan Lake

THE Moscow Ballet’s classical choreography arm La Classique will perform the ballet classic Swan Lake, at the New Frontier Theater until June 22. Sharing the stage with the Moscow Ballet company are two Bolshoi Ballet principal dancers, Nina Kaptsova and Alexander Volchkov. The production of Swan Lake will be accompanied by the Russian Symphony Orchestra, under the baton of conductor Yaroslav Tkalenko. Tickets are available at all TicketNet (www.ticketnet.com.ph, 911-5555) and TicketWorld (www.ticketworld.com.ph, 891-9999) outlets.

Fête de la Musique

FÊTE DE LA MUSIQUE returns on June 21 and 22 with two main stages — at Greenbelt Park in Makati and at the A-Venue Parking Lot along Makati Ave. — and pocket stages all over Poblacion, Makati. Performing on June 21 at the A-Venue Parking Lot are Irie Sunday Crew, Bawal Clan, Anima Tierra x Flow Arts PH, Extrapolation, Ang Bandang Shirley, Unique, Dicta License, Apartel, Ebe Dancel, and Itchyworms. On June 22 there will be exclusive Afternoon Sessions, starting at 1 p.m. Come nighttime, party on at the main stage at Greenbelt Park and dance the night away to the music of Dayaw, Pinkmen, CRWN x August Wahh, Todo Pasa, She’s Only Sixteen, The Ransom Collective, Project Yazz X Skarlet Brown, Hernandez Brothers X Quest, Ciudad, Autotelic, and Urbandub. All performances are free.

Nationalistic film festival

AS PART of its month-long celebration of Filipino arts and culture, Shangri-La Plaza presents the first National Retrospective Film Festival on June 19 to 22 at the Red Carpet Cinema. To be shown are Marilou Diaz-Abaya’s Jose Rizal (1998); Jerrold Tarog’s Heneral Luna and Goyo: Ang Batang Heneral; Enzo Williams’ Bonifacio: Ang Unang Pangulo; Gil Portes’ Ang Hapis at Himagsik ni Hermano Puli; and, Ang Kababaihan ng Malolos, a musical docudrama about the group of women that Rizal addressed in his famous Letter to the Young Women of Malolos. All films are shown for free on a first come, first served basis.

Manila Mini Maker Faire 2019

THE Manila Mini Maker Faire (MMMF), a festival of artistic and scientific innovations, will be held on June 22 to 23 at The Mind Museum at BGC. It will feature over 150 “makers” from around the country, as well as from around Asia. This year, projects will highlight environmentally sustainable projects. Some of these include solar-powered waste collectors, motorcycles retrofitted with electric engines, and products fashioned out of ocean plastic. Attendees can also participate in hands-on maker activities and sign up for a variety of free and ticketed workshops. Bokashi mud ball making, robotics, paper engineering, 3D design, eco art organic painting, and more will be available for everyone interested to learn new things. Free admission. For details, visit: http://manila.makerfaire.com/.

SPAVI to open 5-6 Peri-Peri stores

By Arra B. Francia, Senior Reporter

SHAKEY’S PIZZA Asia Ventures, Inc. (SPAVI) targets to open at least five stores under its newly acquired restaurant chain Peri-Peri Charcoal Chicken.

The listed full-service restaurant operator said this will be in addition to the 20 new Shakey’s stores it will open in the country this year, or a total of 248 Shakey’s stores by end-2019.

“We just took over (Peri-Peri in) June 1. Maybe as a guidance, five to six stores will be realistic. We’re still trying to learn this new brand. We don’t want to be haphazard here, because we wanna do it right,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said in a briefing after the company’s annual shareholders’ meeting on Thursday.

SPAVI in April acquired the Peri-Peri business from businessman Bryan Tiu’s iFoods Group, Inc., the same firm behind homegrown brands Tokyo Cafe, Stackers Burger Cafe, and Parmigiano.

Mr. Gregorio said one of the new Peri-Peri stores will be located in the soon to be finished Ayala Mall in the Manila Bay Area, while two will be located in Quezon City. They are negotiating two more locations inside the SM Group’s malls in Metro Manila.

Peri-Peri currently has 23 stores, 60% of which are franchised while the rest are company-owned. Mr. Gregorio said that all stores they will be opening for the moment will be owned by the company.

Meanwhile, SPAVI is tracking a double-digit growth for both its revenues and net income for full-year 2019 on the back of a three to four percent target for same-store sales growth (SSSG). Mr. Gregorio noted that the first quarter has been very challenging for the food industry, with other players reporting a flat performance or a decline in SSSG.

At the same time, SPAVI continues to bring down its costs to boost net income margins.

“Last 2018 the margins have grown faster than sales and revenues, we believe we’ve been making progress on efforts to bring down and manage costs. We expect to intensify that to keep it the same or hopefully even better,” Mr. Gregorio said.

The company is also introducing new products in its menu, such as a breakfast line, to improve sales in traditionally weak portions of the day.

Overseas, Mr. Gregorio said they are looking to open the third Shakey’s stores in the United Arab Emirates soon.

SPAVI’s net income attributable to the parent grew three percent to P188.38 million in the first quarter of 2019, amid a four percent uptick in gross revenues to P1.84 billion.

Shares in SPAVI added 0.14% or two centavos to close at P14.14 apiece at the stock exchange on Thursday.

Sanofi plans 466 job cuts as part of R&D reshuffle

PARIS — Sanofi on Wednesday said a reorganization of its research and development operation in Germany and France would result in 466 job cuts in the two countries.

In an emailed statement, a spokesman with the French drugmaker said the reshuffle aimed at enabling Sanofi to concentrate its research efforts in cancer, immunology, rare diseases and vaccines.

The company would end new research efforts in cardiology, the spokesman added, solely keeping existing research programs.

The 466 job cuts are to be implemented on a voluntary basis, Sanofi said. The company currently employs 15,000 in R&D worldwide out of a total staffing of more than 100,000. — Reuters

Bank of Japan holds fire, joins Fed in warning of rising risks

WIKIPEDIA.ORG

TOKYO — The Bank of Japan (BoJ) kept monetary policy steady on Thursday, preferring to save its dwindling ammunition as a darkening global growth outlook prompts other major central banks to drop hints of additional stimulus.

But the BoJ stressed anew that global risks were increasing as trade tensions and uncertainty over US economic policies jolt financial markets, signaling that it, too, is leaning more toward ramping up — not whittling down — monetary support.

As widely expected, the BoJ maintained its short-term rate target at -0.1% and a pledge to guide 10-year government bond yields around zero percent.

It also kept intact a loose pledge to keep buying government bonds so the balance of its holdings increase by roughly 80 trillion yen ($738 billion) per year.

“Downside risks regarding overseas economies are big, so we must carefully watch how they affect Japan’s corporate and household sentiment,” the BoJ said in a statement announcing the policy decision.

Central banks across the globe are tilting towards easing as the escalating US-China trade war adds pressure on the slowing world economy.

The US Federal Reserve kept interest rates steady on Wednesday but signaled it was ready to battle risks by cutting rates beginning as early as next month.

The more dovish outlook saw the yen strengthen against the weakened dollar.

Australia’s top central banker on Thursday said it was not “unrealistic” to expect a further reduction in rates given ample slack in the labor market. It cut rates to a record low earlier this month.

Many Japanese policy makers, however, are wary of expanding stimulus any time soon, as years of heavy money printing have left them with little ammunition.

Some analysts say the BoJ could strengthen its forward guidance and pledge to keep current ultra-low rates longer than it promises to do so now, if future Fed rate cuts trigger an unwelcome yen spike that hurts Japan’s exports.

“There’s a good chance the Fed will cut rates in July. If that happens, the BoJ will strengthen its forward guidance to keep yen rises in check,” said Izuru Kato, chief economist at Totan Research.

“The BoJ’s next move will depend on how the US economy performs and how Washington’s trade war with China progresses.”

At its previous rate review in April, the BoJ adopted a forward guidance that pledges to keep current ultra-low rates at least until around spring of next year.

Japan’s economy expanded by an annualized 2.1% in January-March but many analysts predict growth to slow in coming quarters as the US-China trade row hurts global trade. A scheduled sales tax hike in October may also curb consumption.

Annual core consumer inflation hit 0.9% in April, remaining distant from the BoJ’s 2% target, despite years of massive and radical stimulus.

A Reuters poll released this week showed expectations of the BoJ’s next move have shifted amid growing concerns about the economic outlook.

For more than two years, a majority of economists surveyed have said its next policy change would be to tighten the money taps with an eye to “normalising” settings that have long been at crisis levels.

But now, half the analysts polled June 5-17 said the BoJ’s next step would be to ease even further. — Reuters

What to see this week

5 films to see on the week of June 21 — June 27, 2019

Rocketman


A BIO-PIC on British singer-songwriter Elton John, the film — sprinkled heavily with his songs — follows the journey of the singer from shy piano prodigy Reginald Dwight into a international superstar. Directed by Dexter Fletcher, the film stars Taron Egerton, Jamie Bell, Richard Madden, and Bryce Dallas Howard. With a score of 89% on the review aggregate site Rotten Tomatoes, the site’s “Critics Consensus” says “It’s going to be a long, long time before a rock biopic manages to capture the highs and lows of an artist’s life like Rocketman.”

MTRCB rating: R-13

Toy Story 4


JUST when we thought Pixar ended the movie franchise with its third installment, it returns with Bonnie’s craft project turned toy, Forky who considers himself “trash,” and Woody takes on the task of making Forky realize that he is a beloved toy. But then a family road trip ends up in the unexpected reunion with Bo Peep and things start getting complicated. Directed by Josh Cooley, the animated film features the voices of Tim Allen, Tom Hanks, Annie Pots, Tony Hale, Keegan-Michael Key, and Jordan Peele. Empire’s Dan Jolin writes, “In arguably the series’ most grown-up storyline yet, the film asks whether two people who were once very close, but whose lives have been pulled in such drastically different directions, could ever make it work again.” Review aggregate site Rotten Tomatoes gives the film a high score of 98%

MTRCB rating: G

Child’s Play

THE film is a contemporary re-imagining of the 1988 horror classic where Karen, a single mother, gifts her son a Buddi doll which then reveals its sinister nature. Directed by Lars Klevberg, the film stars Gabriel Bateman, Mark Hamill, and Aubrey Plaza.

MTRCB rating: R-16

Anna

THIS English language French action thriller follows Anna Poliatova, whose beauty hides the strength and skill to becoming the world’s most feared assassin. Directed by Luc Besson, the film stars Sasha Luss, Helen Mirren, and Luke Evans.

MTRCB rating: R-16

Feelinnial

MADAME Bato-bato, a rich single mother, and Chito, a bachelor and lottery winner, meet through a dating app. As their relationship develops, they also meet each other’s families and engage in activities millennials do — to the dismay of the real millennials in their lives. Directed by Rechie Del Carmen, the film stars Bayani Agbayani and Ai Ai Delas Alas.

MTRCB rating: PG

Convincing a manager who doesn’t believe in workers’ ideas

I’m an ordinary employee at a medium-sized corporation. My concern is about the management style of our department boss who thinks he knows everything about our job. Whenever we give excellent ideas on how to do a certain job, including how to save money, our boss normally rejects them all. Some of the employees think the boss is doing that for fear that he may lose control of the situation and make him look like a weakling before top management. The trouble is that many practical ideas, including those that don’t cost money, have long been relegated to the sidelines. Sometimes, our boss will simply delay judgment by asking the proponent-workers to give their ideas some serious thought before passing it to higher management. What’s the cure for this? — Lost Dissident.

Exhilaration is that feeling you get just after a great idea hits you and before you realize what’s wrong with it. But somehow, your boss may be right for asking you to give your ideas serious thought. Now, let me tell you another story:

Two young inexperienced hunters went hunting in the woods. As they enter the forest, they see a warden’s notice along the road informing them that should they get lost, they must fire three shots in rapid succession. After two hours, they did get lost. One of them said to the other: “You’d better fire three shots.” So he fired three shots in the air.

Nothing happened. After a while, the first hunter said: “You had better fire another three shots.” So three shots were fired in succession. They waited for another hour or so and still nothing happened. Again, the first hunter turned to the second and said in great distress: “I guess you had better fire three more shots.”

The second hunter said: “I can’t. I’ve run out of arrows.”

Was it a case of miscommunication? Certainly! In people management, the success or failure of managers depends largely on creating and sustaining a proactive communication process every day, starting with a stand-up meeting for not more than 15 minutes, first thing in the morning.

But that’s not all. There must be a holistic approach so that all employee ideas are secured, processed, and implemented with the participation of all stakeholders. This requires a dynamic feedback mechanism that promotes two-way communication all throughout the organization.

I’m not sure about your credibility, status, and image with your boss. These factors are very important and critical in answering your concern. If your performance is “average,” chances are, your proposal may be treated as a low priority by management. On the other hand, if your performance is consistently hovering between “above-average” and “excellent,” you can expect your management to do what it can do to listen to your ideas, no matter how crazy they may appear to be.

If you can’t exceed management expectations, then no number of good ideas will be accepted if it comes from a “polluted” source. The question is this – are you credible enough to suggest the following approaches to your management? That’s the only way. There must be a systematic approach to doing all of these without assuminging malice on the part of your boss and with you looking at the mirror to discover your weaknesses.

If you think you’re ready, explore the following techniques that would promote a greater degree of openness in communicating your thoughts to management:

One, establish a clear-cut policy in managing employee ideas. Either by way of an individual suggestion scheme or through quality circles or any of its derivatives, there must be a clear mechanism on how employee suggestions are to be solicited, processed, approved and rewarded. Without a system, you will only be running in circles and would continue to blame your boss about it.

Two, apply the policy to all departments, sections or units. No ifs, no buts. Such a policy must be a part of everyone’s key performance indicators and done as a corporate-wide program and not as a pocket issuance that applies only to selected groups, except during the planning and piloting stage. This requires the approval of top management who must be committed to make everything happen.

Three, conduct an annual employee satisfaction survey. Continue to take the pulse of all employees. Don’t rely on exit interviews. It’s too late and limited to certain employees only. Find out the majority opinion of the workers and take it from there. You’ll be surprised at the amount of information you’ll get if you will allow your employees to voice their opinion in an anonymous survey.

Four, give rewards and recognition to those who deserve it. It’s one basic approach to motivating people. Praise employees when you see them doing something that is over and beyond their job description. When people work hard, they appreciate it more if management recognizes their efforts. One thing: The reward should not be limited to giving out material rewards.

Last, devolve decision-making to the person closest to a problem. This is not a new idea. It has long been practiced by Toyota, which requires its workers to stop line production as soon as they discover a problem. There’s no need for management approval to do it. And it’s not limited to the Japanese. Even Pixar and Disney workers don’t wait for management approval to come up with solutions.

Ed Catmull, an American computer scientist and former president of Pixar and Disney asks: “What is the point of hiring smart people, if you don’t empower them to fix what’s broken?” It’s not about a managerial job title. What matters is that excellent employee ideas are greater than managerial rank.

ELBONOMICS: The managers can become leaders as soon as they empower their workers.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Aboitiz InfraCapital, FTAP to build common towers

ABOITIZ InfraCapital, Inc. is partnering with Frontier Tower Associates Philippines, Inc. (FTAP) to build and operate common cell towers around the country.

In a statement, the infrastructure unit of Aboitiz Equity Ventures, Inc. (AEV) said it entered into a cooperation agreement with FTAP to develop, build, operate and maintain a network of new towers “in a bid to vastly improve and expand the country’s cellular and telecommunications capabilities.”

“We truly believe that we will be able to deliver a common tower solution that is fast and effective, paving the way for greater quality and coverage in the telecommunications sector. Amid the country’s growth momentum and the government’s commitment to bolster further advancement, Aboitiz InfraCapital aims to build the right infrastructure that will advance business and communities,” Cosette V. Canilao, Aboitiz InfraCapital chief operating officer, said.

For the project, the company said it is bringing the Aboitiz group’s vast experience in constructing and operating provincial utility networks, such as Visayan Electric Co., Davao Light and Power Co., and Cotabato Light and Power Co.

FTAP is a member of the Frontier Tower Associates Group (FTA), described as an established international tower operator and service provider. Its chairman, Patrick Tangney, founded the biggest tower company in Myanmar before launching operations in Indonesia and the Philippines.

“We have rolled out and operated thousands of towers in the ASEAN region; our operations team has also in the past rolled out more than 1,000 towers in the Philippines that form a core part of existing mobile phone networks. In the run-up to our launch, the FTAP-Aboitiz team has been conducting radio planning in a number of regions, developing tower designs specific to the Philippines, and building a landbank of site locations relevant for mobile phone companies,” Mr. Tangey said.

The Department of Information and Communications Technology is calling on common tower providers to help install 50,000 common towers all over the country over the next seven years.

Lloyd’s to meet with AIG, Chubb to boost business

LLOYD’S of London Ltd. is looking to boost its business in the United States. — WIKIMEDIA.ORG

NEW YORK — Lloyd’s of London Ltd. is meeting with major US insurers about driving more business through its global insurance market, Chief Executive Officer John Neal said on Wednesday.

The 330-year-old insurance market, which launched its most recent modernization effort in May, will meet with American International Group Inc. on Thursday, and later with Chubb Ltd. about potential opportunities for selling more of their insurance products through Lloyd’s, Neal told Reuters.

Neal, who took charge of Lloyd’s in late 2018, is trying to drag Lloyd’s into the 21st century, following combined losses of $3.9 billion over the last two years. Lloyd’s insures everything from hurricane damage to soccer stars’ legs, but high levels of insured losses from natural catastrophes triggered the two years of poor results.

While Lloyd’s outlined plans last month to set up electronic platforms as soon as next year, its intricate structure involving 99 underwriting syndicate members and hundreds of brokers makes change difficult.

Neal said his strategy includes shifting Lloyd’s geographic focus, including concentrating on developed markets with strong growth potential such as the United States. The United States and Canada accounted for 51% of Lloyd’s business last year.

Lloyd’s kicked off its US strategy during a dinner on Tuesday for top insurance and brokerage executives in New York’s new World Trade Center building, a site that following the destruction of the Sept. 11, 2001, attacks was rebuilt partly with $8 billion in claims payments from the Lloyd’s marketplace, its chairman, Bruce Carnegie-Brown, said.

“We are talking to all of the big insurers here…to say, How do you feel about the marketplace and what opportunities can we help you realize in the Lloyd’s marketplace?” Neal said, adding that both AIG and Chubb are interested in the conversation.

Lloyd’s has already been talking to AIG, including CEO Brian Duperreault and Peter Zaffino, CEO of AIG’s General Insurance business, about the possibility of selling more products through the marketplace, Neal said.

AIG acquired Bermuda reinsurer Validus in 2018, partly because of its Talbot unit, a Lloyd’s of London syndicate, Duperreault said at the time.

“Our impression from any conversations with (Duperreault) and Zaffino is that they’d love to grow their business at Lloyd’s,” Neal said.

Neal said his London-based colleagues were surprised when he proposed the United States as a priority because they believed emerging economies had more growth potential.

He sees growth potential in several US areas, including specialty insurance, which covers unique risks such as damage to a company’s reputation, or liability for a merger deal that goes sour. “Professional lines” insurance, which includes liability coverage for corporate directors and officers, is another possible growth area, Neal said.

The global commercial, corporate, specialty insurance and reinsurance business is worth $750 billion, and half of those premiums are in the United States, Neal said.

“So literally, one dollar in two of everything that would interest Lloyd’s underwriters is here,” he said. — Reuters

How PSEi member stocks performed — June 20, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, June 20, 2019.

 

Cebu Pacific renews fleet with order of 31 brand-new Airbus NEO aircraft

Cebu Pacific (PSE: CEB), the leading carrier in the Philippines, announces that it has ordered a total of 31 next generation aircraft from Airbus. The investment accelerates the carrier’s plan to introduce more fuel-efficient and eco-friendly aircraft to replace its current fleet.

The order is comprised of 16 A330neo and 15 A320neo family aircraft. The aircraft are scheduled for delivery between 2021 and 2026.

Based on list price, the deal is worth an estimated USD6.8 Billion. The agreement was made during the 2019 Paris Air Show in Le Bourget, France—the global aerospace industry’s biggest trade event. The latest order is in addition to the 32 A321neo aircraft ordered in 2011, for delivery until 2022.

The 16 A330neo will be fitted with 460 seats, having 5.5% more capacity than CEB’s current fleet of   A330ceo aircraft. The additional seats were made possible through a more efficient layout of cabin interiors and new generation seats.

The new A330neo will replace the A330ceo, which will be progressively retired. Using the new Rolls Royce Trent 7000 engine and a more aerodynamic wing design, the A330neo is more efficient, providing a range of up to 7,200 nautical miles with as much as 12% less fuel burn per trip. On top of a reduced environmental footprint, the A330neo also has a quieter cabin for an improved passenger experience.  As part of the transaction, Rolls Royce has also been selected for engine maintenance and support.

“The A330neo will give us the lowest cost per seat and allow us to continue offering the lowest fares. Moreover, the lower fuel burn matched with higher seat density will allow CEB to address growing demand for leisure and business travel, by upgrading aircraft and maximizing available airport slots in Manila and other megacities we serve,” said Lance Gokongwei, President and CEO of Cebu Pacific.

CEB also ordered 15 A320neo family aircraft, including 10 A321 XLR (Xtra Long Range) and five (5) 194-seat A320neo. The increased capacity of the A320neo will result in a 7% reduction in cost per seat; and a reduction of fuel burn and emissions of as much as 15%.

Scheduled to start delivering in 2024, the A321 XLR is designed to have a range of up to 4,000 nautical miles and can potentially fly 220 passengers for up to 11 hours. This new and unique capability gives CEB the opportunity to develop new markets from key cities other than MNL.

As the new A320neo enter into service, the older A320ceo aircraft will be subsequently retired.

“Our strategy is to replace our fleet with bigger and more fuel-efficient aircraft to fly more passengers utilizing our existing slots while reducing our environmental footprint per passenger. We will be operating an all Airbus NEO fleet by end-2024 and retiring our older generation jets.”

Currently, CEB has a 72-aircraft fleet comprised of two (2) Airbus A321neo, seven (7) A321ceo, one (1) A320neo, 33 A320ceo, eight (8) A330ceo, eight (8) ATR 72-500s and 13 ATR 72-600s. CEB boasts of one of the youngest fleets in the world, with an average fleet age of five (5) years.

CEB was advised by Plane View Partners on the new transactions with Airbus and Rolls Royce.