InLife launches new model to improve its products’ personalization

June 17, 2022 | 12:02 am

INSULAR LIFE Assurance Co., Ltd. (InLife) has launched a new insurance model in response to changing consumer needs to make more personalized products.

“We recognize that due to the [coronavirus disease 2019] (COVID-19) pandemic, more Filipinos have become aware of the importance of financial planning and life insurance,” InLife President and Chief Executive Officer Raoul Antonio E. Littaua said at a media briefing on Thursday.

The new insurance model, the InLife Agency Model (I AM), features Wealth Assure Plus, a customizable life insurance product with an investment component to provide a higher protection benefit equivalent to a minimum of 10 times the annual regular premium or the policy’s fund value.

This product may be customized based on the customer’s needs, such as attachment of other benefits, the preferred mode of payment, payout options, and access to fund selections, to suit customer needs.

“If your need is this, you want business protection, you want investments, you want education, you want healthcare, you are able to configure it so that, the end result is a product that is customized for you,” Mr. Littaua said on the sidelines of the event.

“So, we have to reconfigure the whole platform, and with that, a change in the model of the agency so that we are able to also be more effective in reaching our customers. That includes everything: the support that they have, the technology that they have, the compensation that they get.”

InLife said the model also aims help encourage young Filipinos to pursue a career in financial advising by offering attractive commissions and a flexible agency structure to help financial advisors advance their careers.

“Because one model, okay, you recruit agents, you make them do product pushing, In this case, no. [This will attract] more the younger generation, so we’re talking about financial advice, financial planning, as a long-term career, and not a raket (sideline) only,” Mr. Littaua added.

Mr. Littaua said InLife is eyeing to increase its ranks of financial advisors to 8,000 this year from 4,000.

Meanwhile, InLife also reported that individual claims in the first quarter hit P682 million, mostly on the back of maturity benefits and anticipated endowments.

Of this amount, individual death claims made up P206.5 million of 543 policy claims, with 261 of these COVID-19-related and 229 being death-related claims worth P94.4 million.

“Even as COVID-19 peaked in January due to infections brought about by the Omicron strain, InLife recorded fewer COVID-related death claims,” Mr. Littaua said. “However, we remain vigilant and observe all safety protocols but at the same time, we remain hopeful that things will get better.

Based on 2020 and 2021 data, InLife paid out about 9% of the entire insurance industry’s COVID-19-related claims. — Tobias Jared Tomas

Alliance Select reports net loss

June 17, 2022 | 12:02 am

ALLIANCE Select Foods International, Inc. on Thursday reported a net loss of $394,000 in the first quarter.

“Amidst the challenging environment, the company will continue to implement new strategies to improve growth. Likewise, the capital investments made for automation and equipment upgrade should translate to more productivity and efficiency gains in the medium term,” Alliance Select Treasurer Ma. Carolyn C. Angeles said.

Meanwhile, revenues for the first quarter were at $6.4 million.

In 2021, the firm sold its 80% stake in Akaroa, a company incorporated and domiciled in New Zealand. Proceeds from the sale were used to pay down debts.

“The sale is consistent with the company’s long-term objective to focus on its Philippine operations,” it added.

The company said that its export demand has been primarily weak due to the continued rise in freight costs amid the lack of shipping containers and the temporary closure of ports.

“To partially cushion the impact, Alliance Select implemented cost-reduction measures to lower cost of goods sold and general administrative expenses,” it added.

In a separate disclosure, Alliance Select announced the appointment of Jeoffrey P. Yulo as its president and chief executive officer, and Lorenzo S. Lichauco as chairman of the board of directors.

On Thursday, company shares were down 1.67% or one centavo to close at P0.59 apiece. — Luisa Maria Jacinta C. Jocson

Philippines jumps 4 notches to 125^th in 2022 Global Peace Index

June 17, 2022 | 12:02 am

The Philippines’ rank improved four places to 125th out of 163 countries in the 2022 edition of the Global Peace Index (GPI) by think tank Institute for Economics & Peace. The annual index assessed countries based on their level of peacefulness using three domains: ongoing conﬂict,safety and security, and militarization. The Philippines was among the ﬁve countries with the biggest improvements this year alongside Libya (up ﬁve places to 151st), Egypt (up 5 to 126th), Saudi Arabia (up 8 to 119th), and Algeria (up 10 to 109th). With an overall GPI score range of 1 to 5 (where 1 is the most peaceful), the Philippines scored 2.339, below the Asia-Paciﬁc average of 1.860. It was also the third-lowest in the region, only ahead of Myanmar (139th) and North Korea (152nd).

Rocker Ozzy Osbourne ‘on road to recovery’ after surgery

June 17, 2022 | 12:01 am

LONDON, June 15 – British rocker Ozzy Osbourne is “doing well and on the road to recovery” after undergoing surgery earlier this week, his wife said.

Sharon Osbourne in a message on Instagram thanked fans for their support, after saying last week that the frontman for the former group Black Sabbath was going to have “a very major operation” on Monday. She did not give details about the surgery.

“Our family would like to express so much gratitude for the overwhelming amount of love and support leading up to Ozzy’s surgery,” Sharon Osbourne wrote on Tuesday. “Ozzy is doing well and on the road to recovery! Your love means the world to him.”

The music manager and television personality on Friday told her co-panelists on her UK chat show The Talk that she would be travelling to Los Angeles at the weekend to be with her husband, describing the surgery as one that was “really going to determine the rest of his life”.

In an interview with Classic Rock magazine last month, Ozzy Osbourne, 73, said he was still struggling with injuries sustained from a 2003 quad bike accident. A 2019 fall at his home exacerbated the injuries and he required surgery.

“I’m just waiting on some more surgery on my neck. I can’t walk properly these days. I have physical therapy every morning,” he told the magazine. “I am somewhat better, but nowhere near as much as I want to be to go back on the road.” — Reuters

UST Woodpushers reclaim UAAP Season 84 men’s chess crown

June 17, 2022 | 12:01 am

UNIVERSITY of Santo Tomas (UST) quickly atoned for its exit in women’s indoor volleyball by reclaiming its crown in the University Athletic Association of the Philippines (UAAP) Season 84 men’s chess tournament at the Far Eastern University (FEU) Engineering Building Auditorium in Sampaloc, Manila.

The Tiger Woodpushers harvested 28 points highlighted by a 2.5-1.5 win over La Salle in the last round to end their 10-year title drought. Overall, it’s the eighth chess championship for the España-based squad.

Skipper Brylle Vinluan, Julius Gonzales, Lee Palma and Antonio Almodal led the way in Santo Tomas’ title push much to the delight of coach Ronald Dableo.

University of the Philippines, led by Rookie of the Year Jan Daryl Batula, finished at second with back-to-back champion FEU settling for the bronze medal behind Season MVP Jeth Romy Morado.

University of Santo Tomas’ reign in chess came a few days after the Golden Tigresses bowed out of the women’s volleyball tilt with a 23-25, 23-25, 20-25 loss to reigning champion Ateneo in the first phase of the stepladder playoffs.

Though Santo Tomas also exited early in the men’s basketball last month, it ruled the other remaining events of the compressed UAAP season amid the pandemic.

Before chess, Santo Tomas also stamped its class with championships in poomsae, men’s beach volleyball and men’s 3×3 basketball for a nevertheless stellar season.

Meanwhile, Allanney Doroy copped the Rookie of the Year and Most Valuable Player (MVP) plums as National University captured its first-ever UAAP women’s chess title with 26.5 points. — John Bryan Ulanday

Deciding between a loyal old-timer and a top-performing newcomer

June 17, 2022 | 12:01 am

I’m a vice-president who is torn between promoting an average-performing old-timer (OT) and a newcomer with star qualities (SQ) to a vacant managerial post. The human resource (HR) department does not have a clear policy on promotion but recommended OT. I rejected this advice out of my belief that meritocracy should prevail over seniority. How do we resolve this matter? — Yellow Submarine.

The most objective and practical way is to send both OT and SQ through an evaluation process by a third party, using tools like psychological assessments, job simulation games, ability and aptitude tests. It may cost your organization some money but the result can be worth if you want to assess likely on-the-job performance.

As a department head, you must understand the dynamics of each and every relationship in your organization. It could be that the HR department is influenced by friendship with OT. We can’t say for sure. That’s one reason why you need to be very careful with your choice.

Of course, loyalty as displayed by OT is an important ingredient in any work relationship, except that any hiring decision must balance the need for loyalty with the overall requirements of the job. It is possible to interpret OT’s long service as reflecting an inability to get a job elsewhere.

If this is the case, then a consistent performer like SQ, who could serve as a role model, might be more welcome. On the other hand, OT and the rest of your department may have been so accustomed to a relaxed work environment that SQ might be treated like a pariah if he rocks the boat by demanding more performance.

If you aren’t aware of these things, maybe you don’t have your ear to the ground.

MERIT TAKES PRECEDENCE
You need to make a firm and objective decision that keeps future issues from arising. Now might be the right time to create or review a management policy with the help of the HR department. Put it in black and white that merit takes precedence over seniority. Seniority should come in only to settle ties between equally-qualified candidates.

Here are some ideas that you can use to create a healthy working environment:

One, job vacancies must be announced to all workers. Go public. Explain the requirements of the job, the required qualifications and the timeline for submitting applications. This does not mean ignoring those who do not indicate their interest. If this happens, talk to people who are next in line and find out what their career plans are.

Two, promotion policy must align with succession planning. You can’t have one without the other. If there’s a vacancy, the succession plan (aka replacement plan) is the first document you should consult. Unlike the promotion policy, a succession plan must be kept confidential to avoid adversely affecting the morale of people not on the list.

Last, employee career management and career planning. This is the job of all line managers and department heads who must practice proactive communication with their direct reports. This requires a regular engagement dialogue to help discern the employees’ career interests and assist them through a multi-pronged training and coaching program.

MANAGING MOTIVATION
People management is the heart and soul of every organization. In order for your business to succeed, it’s important to manage people effectively, by motivating them not just with big money and handsome perks. You should also do so with zero-cash motivational approaches that let them use their talent to full potential.

While the employment contract carries with it specific expectations from both employees and management, there are many unwritten rules, like treating everyone with due respect and trust.

Everyone deserves a happy, healthy, secure and safe working environment. The employees themselves must be the ones making the environment sustainable. Anything less than this would represent a clear failure in motivating people. It may lead to the promotion of deadwood over candidates who consistently perform like stars.

Consult with Rey Elbo via Facebook, LinkedIn or Twitter or send your workplace questions to elbonomics@gmail.com or via https://reyelbo.consulting

Cryptocurrency — a risk asset

June 17, 2022 | 12:01 am

JUST a few days ago, the total cryptocurrency market capitalization fell below $1 trillion for the first time since February 2021, according to data from CoinMarketCap.com. This happened against the backdrop of a bull run of Bitcoin in 2021, which ended 70% up at the end of the year. During the lockdown-stricken year of 2020, Bitcoin gained more than 300%!

But in 2022, crypto investors are embracing “a general flight to safety across the board in most asset classes,” said Alex Reffett, co-founder of wealth management firm East Paces Group, as reported in Forbes. “Collectively, investors have shown more interest in value-based investments and less in speculative stocks and alternative ‘store of value’ investments.”

One major source of the negative Bitcoin sentiment is the meltdown of Celsius, a decentralized finance (DeFi) platform and one of the largest crypto lenders. The company gathers crypto deposits from retail customers and loans them out to other investors and financial institutions, much like what a conventional bank does. Investors earn yield from the revenue Celsius generates from crypto borrowers.

In recent days, we have seen the consequence to consumers when unregulated crypto firms play in the highly regulated financial markets. Within the last few days, Celsius experienced an old-fashioned run on the bank and halted customer withdrawals last Sunday. For a variety of reasons, customers lost confidence in the Crypto firm.

One reason is the Federal Reserve’s raising of interest rates twice this year and is planning to raise them again soon. The demand for cryptocurrencies and Bitcoin apparently dwindles when the Fed raises interest rates, just like its impact on tech stocks.

The sustained jacking up of interest rates to fight the historic surge in inflation is uncharted territory for cryptocurrency. In fact, Interactive Brokers’ Chief Strategist Steve Sosnick said, “We have no historical precedent for how Bitcoin and other cryptos might act if we enter a sustained period when central banks actively drain liquidity; Those tend to be tough times for investors, and riskier assets tend to underperform safer ones,” as quoted in Forbes.

These highlight the fact that Bitcoin and cryptocurrencies are risk assets — investments that experience a substantial amount of volatility when subjected through the usual market forces. Other risk assets are stocks, commodities, currencies, and high-yield bonds, which frequently experience difficulties in prices under almost any market conditions.

That’s why Microsoft co-founder Bill Gates described cryptocurrencies and non-fungible tokens (NFTs) as something that’s “100% based on greater fool theory.” He was “referring to the idea that overvalued assets will go up in price when there are enough investors willing to pay more for them” as reported by CNBC. “I’m used to asset classes… like a farm where they have output, or like a company where they make products,” Gates said in a CNBC report.

Gates’ pronouncements resonate well with astute investors. In 2017, I have written and spoken advisories about cryptocurrencies and Bitcoin. I likened investing in Bitcoin to gambling — deciding to put one’s money into something with low to moderate knowledge of the investment and extremely substantial risk.

Warren Buffett said that gamblers are “encouraged when they see some successes around.” But it “has terrible odds attached.” Gamblers lose more when they erroneously assume that the more they lose now, the better the chances of winning in the future; hence they make more bets. This is what has been happening with Bitcoin and other cryptocurrencies over the last years. Only a few make money relative to those ignorant masses that blindly speculate on the risky asset.

Is it wise to invest in Bitcoin? The answer is no. It’s never an investment in the first place. Just like rare baseball cards, Bitcoin is being driven to absurd prices by speculators, misinformed investors, and even gamblers who think they could sell them to someone else for more money in the future.

Reynaldo C. Lugtu, Jr. is CEO of Hungry Workhorse, a digital and culture transformation consulting firm. He is the country representative of the Institute of Change and Transformation Professionals Asia (ICTPA) and fellow at the US-based Institute for Digital Transformation. He teaches strategic management in the MBA Program of De La Salle University. The author may be e-mailed at rey.lugtu@hungryworkhorse.com

Tax court declines to review telco firm’s VAT refund claim

June 17, 2022 | 12:01 am

THE Court of Tax Appeals (CTA) affirmed its division ruling denying the appeal of Lantro Philippines, Inc. to review and refund its excess value-added tax (VAT) worth P11.9 million for the four quarters of 2014.

In a 15-page decision on June 9 and made public on June 14, the CTA full court agreed with the First Division as it ruled that the company did not file its petition within the 30-day period prescribed by law.

“Petitioner’s (Lantro) claim was filed out of time, and the court in division did not err in dismissing the petitioner for review for lack of jurisdiction,” according to a copy of the ruling penned by CTA Associate Justice Erlinda P. Uy.

The tribunal said it need not address the issues presented since the late filing justified an instant dismissal of the petition.

Lantro had filed its petition for review on Aug. 23, 2016, which was beyond the 30-day period to appeal a tax decision.

Under the country’s revenue code, if the commissioner of internal revenue rejects or fails to act on a claim for refund, the taxpayer is given a 30-day period from the receipt of an adverse decision or ruling to file a petition for review with the tax court.

The CTA en banc said that taxpayer-claimants should act “judiciously and with circumspection” in complying with the prescribed periods to file a judicial claim, which affects the court’s jurisdiction on the claim for refund. It added that an administrative claim for refund must be filed within two years after the end of a taxable quarter when the sales were made.

The company argued it had refiled its refund claim on Feb. 26, 2016, after it initially filed its claim on Jan. 7 of the same year.

“Surely, the petitioner cannot expect the court to assume that it re-filed its administrative claim absent any clear and definite proof that it abandoned its initial administrative claim,” the court said.

The petitioner is a telecommunications company based in Pasig City that provides its clients with installation, maintenance, and support services. — John Victor D. Ordonez

Tourism’s share to GDP slightly improves in 2021

June 17, 2022 | 12:01 am

THE SHARE of the tourism industry to the Philippines’ economic output inched up in 2021, as domestic travel restrictions eased alongside the increase in coronavirus disease 2019 (COVID-19) vaccination rates. Read the full story.

How PSEi member stocks performed — June 16, 2022

June 17, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Thursday, June 16, 2022.

PHL shares up on bargain hunting after Fed hike

June 16, 2022 | 9:00 pm

SHARES climbed on Thursday on bargain hunting and as Wall Street cheered the US Federal Reserve’s decision to hike interest rates by 75 basis points (bps), bigger than increases made at previous meetings, to fight rising inflation.

The benchmark Philippine Stock Exchange index (PSEi) rose by 73.59 points or 1.16% to close at 6,393.01 on Thursday, while the broader all shares index ended higher by 25.54 points or 0.74% to 3,435.24.

“Philippine shares rebounded following the Federal Open Market Committee’s rate hike announcement. The Fed announced a 75-bp rate hike to conclude its two-day policy-setting meeting, which had been widely anticipated by the market, but it was Fed Chair Jerome Powell’s willingness to do another hike of that size to tamp down inflation back to its 2% objective that surprised markets,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market bounced back this Thursday as investors hunted for bargains from the preceding day’s losses… The positive spillovers from Wall Street’s overnight performance also helped in the rebound. This is as Federal Reserve Chairman Jerome Powell said that it is still possible for the US economy to avoid a recession amid their monetary tightening,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The Fed on Wednesday approved its largest interest rate increase in more than a quarter of a century to stem a surge in inflation, Reuters reported.

Officials also envision steady rate increases through the rest of this year, perhaps including additional 75-bp hikes.

Wall Street rallied on Wednesday after the Fed’s announcement. The Dow Jones Industrial Average rose 303.70 points or 1% to 30,668.53; the S&P 500 gained 54.51 points or 1.46% to 3,789.99; and the Nasdaq Composite added 270.81 points or 2.50% to end at 11,099.16.

Back home, Regina Capital’s Mr. Limlingan said the April remittances report also helped buoy the market. Cash remittances sent home by overseas Filipino workers surged by 3.9% in April. The growth was the fastest since the 5.1% print seen in November last year.

The majority of sectoral indices ended in the green, except for services, which declined by 35.05 points or 2.04% to 11,681.98.

Meanwhile, property rose by 69.51 points or 2.36% to 3,005.79; holding firms gained by 99.93 points or 1.72% to 5,900.30; financials went up by 25.31 points or 1.63% to 1,573.04; industrials climbed by 79.67 points or 0.90% to 8,932.97; and mining and oil added 93.63 points or 0.80% to end at 11,681.98.

Decliners narrowly beat advancers, 107 versus 103, while 48 names ended unchanged.

Value turnover decreased to P5.60 billion on Thursday with 647.17 million shares changing hands from P11.03 billion with 3.65 billion issues seen the previous trading day.

Net foreign selling dropped to P295.08 million from P1.22 billion on Wednesday. — Luisa Maria Jacinta C. Jocson with Reuters

Peso weakens further after Fed hikes rates by 75 bps

June 16, 2022 | 9:00 pm

THE PESO weakened further against the dollar on Thursday after the US Federal Reserve delivered its biggest rate hike since 1994.

The local unit closed at P53.47 versus the greenback, down by 3.5 centavos from its P53.435 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P53.30 against the dollar. Its intraday best was at P53.29, while its worst showing for the day was at P53.495 versus the greenback.

Dollars exchanged went down to $1.141 billion on Thursday from $1.164 billion on Wednesday.

The local unit declined after the Fed hiked its benchmark interest rates by 75 basis points (bp), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. The bigger hike came after US inflation hit a 40-year high in May.

The Fed on Wednesday said officials also expect to raise rates steadily this year, with more 75-bp hikes still on the table.

The US central bank has hiked borrowing costs by a total of 150 bps since starting its tightening cycle in March.

For today, a trader said the peso may drop further on expectations of a dovish statement from the Bank of Japan (BoJ). The BoJ is widely expected to keep its ultra-low interest rate targets unchanged at its two-day review that ends on Friday.

Mr. Ricafort gave a forecast range of P53.35 to P53.50, while the trader expects the peso to move from P53.30 to P53.50 per dollar. — KBT