Growing the business with renewable energy

May 17, 2021 | 9:00 am

Business operations and climate change have a complicated connection. Nevertheless, this can still be resolved.

“The massive developments in business have benefited people greatly, but at the same time, they have come with a price: increasing the rate of climate change,” Talal Rafi, a World Bank Global Youth Climate Network Ambassador on Climate Change, wrote on Forbes.

Yet, Mr. Rafi said that all businesses can play a role in combating climate change. Among the actions that businesses should to take in fighting this concern, he recognizes the impact of using renewable energy (also referred to as clean or green energy).

According to him, working towards carbon neutrality, which could be helped by a switch to renewable energy, is a powerful way for businesses to mitigate climate change. It is also one of the two key areas where businesses can bring in innovation in dealing with the said issue.

“The renewable energy market is set to reach $2.15 trillion by 2025, so there is a huge market for businesses to move into when it comes to growth,” he noted.

Since May 2020, the Environmental Protection Agency and Fortune 500 acknowledged several major companies like Microsoft and Intel that have been using green energy. Topping the list is Google LLC, which annual green power usage in kWh is 7,492,567,647.

Just last month, Facebook has also announced that its global operations are now supported by 100% renewable energy. It also shared how it reached this goal that was set in 2018.

“We believe that climate change is an urgent issue facing the world today, and we are committed to doing our part to address this challenge,” Urvi Parekh, director of renewable energy at Facebook, shared on the social media platform’s tech website.

Facebook’s journey towards an absolute renewable energy began in 2011. Ms. Parekh recounted their first wind project in Iowa and have continued their progress to build one of the largest portfolios of renewable energy projects.

“Our commitment to renewable energy has resulted in 63 new wind and solar power plants, representing an estimated $8 billion of investment,” she said. “These projects support tens of thousands of jobs during construction, when solar panels and wind turbines are installed on-site, as well as along the global supply chain to produce solar panels and wind turbines and towers.”

At present, Facebook is one of the largest corporate buyers of renewable energy, with contracts in place for more than six gigawatts of wind and solar energy across five countries and 18 American states.

“In partnership with the utilities that serve our data centers, we have also developed new green tariffs, which are mechanisms for customers to buy green power from their electric utility,” Ms. Parekh informed.

She also said that Facebook has already announced 720 MWh of new energy storage projects paired to solar power plants this 2021. “We remain committed to innovative solutions that increase the amount of renewable energy on electricity grids around the world, including energy storage,” she added.

Ms. Parekh said that Facebook continues to work on maintaining its 100% renewable energy as they continue to grow.

“We’ve already set a new goal that in 2030, we will reach net zero emissions across not only our own operations but also our value chain (our suppliers, as well as items like business travel and employee commuting),” she stated.

Facebook is merely among the big businesses that embraced renewable energy which benefitted its operations. The European Business Review looked at how the transition towards a sustainable future through renewable energy can let companies experience its advantages.

“Going green can help a company’s finances in multiple ways, it also attracts more customers and clients,” it observed.

The journal said that renewable energy like solar and wind could notably decrease the company’s energy bills. Moreover, since the company would rely on an energy generated from natural processes, there can be no service disruptions that can cost sales.

Companies can also further boost the local economy through renewable energy, according to the journal. As Facebook also demonstrated, the switch to renewable energy will encourage growth and create jobs, particularly in the energy sector.

“By adopting renewable energy such as solar, you will be able to reap the rewards of your investment over a period of time. Although the initial cost may be high, you will certainly see the savings in the years ahead,” the European Business Review stated. — Chelsey Keith P. Ignacio

Malayan Insurance is Top Philippine non-life insurer

May 17, 2021 | 8:10 am

Photo with IC Funa — Photo shows (from left): Malayan Insurance president and CEO Paolo Y. Abaya, Insurance Commissioner Dennis B. Funa, Malayan Insurance chairperson Helen Y. Dee and vice chairperson Yvonne S. Yuchengco.

Photo shows (from left): Malayan Insurance president and CEO Paolo Y. Abaya, Insurance Commissioner Dennis B. Funa, Malayan Insurance chairperson Helen Y. Dee and vice chairperson Yvonne S. Yuchengco.

In the latest release of insurance industry unaudited figures, Insurance Commissioner Dennis Funa said that Malayan Insurance Co., Inc. was in first place for the Philippine non-life insurance industry, based on Gross Premiums Written, for the Year 2020.

Malayan Insurance’s number one ranking was based on the compilation of quarterly reports on selected financial statistics of the insurance industry, submitted by companies to the Insurance Commission.

Based on a compilation of unaudited reports submitted for the year 2020, Malayan Insurance’s gross premiums written amounted to P14.21 billion, the highest in the industry, despite the effects of the COVID-19 pandemic on the economy. Malayan’s net premiums written were at Php4.08 billion, putting it among the top non-life insurers in the country.

“Gross premiums written (GPW) are computed by taking the sum of an insurance company’s premiums from direct business and assumed premiums before the effect of ceded reinsurance,” IC Commissioner Dennis Funa earlier explained. GPW reflects the total business written by the insurance company, “while net premiums written (NPW) are obtained by subtracting a non-life insurance company’s reinsurance cessation from GPW,” said Funa.

With many of the largest Philippine companies placing their non-life insurance with Malayan Insurance during the pandemic, the company has secured reinsurance support to be able to meet the requirements of Philippine business.

Official and audited insurance industry figures are released in the Insurance Commission website in, middle of the year.

Malayan Insurance has been the dominant non-life insurer of Philippine businesses and families for over 50 years. Malayan Insurance is rated by AM Best, a global rating authority for the insurance industry, with Financial Strength Rating (FSR): B++ (Good), and Long-Term Issuer Credit Rating (Long-Term ICR): bbb+, providing the Philippine insuring public with world-class insurance protection.

Malayan Insurance, founded in 1930, is a member of the Yuchengco Group of Companies (YGC), one of the largest conglomerates in the Philippines, with core businesses in financial services, banking, investments, construction, education, energy, and information technology.

Sun Life of Canada (Philippines), Inc.: Constantly committed to purpose and clients

May 17, 2021 | 8:00 am

By Adrian Paul B. Conoza, Special Features Writer

Amid the COVID-19 pandemic’s impact on businesses and individuals, the insurance industry continues to fulfill its purpose, and its relevance among consumers has even widened with the increase in health and safety concerns.

Testifying to the steady commitment of the sector is the remarkable performance of Sun Life of Canada (Philippines), Inc. as it remains the top life insurance company in the country.

Last April, the Insurance Commission reported that in 2020, Sun Life posted the highest premium income among life insurers at P39.27 billion. With this latest achievement, Sun Life has successfully retained its no. 1 position for 10 consecutive years.

Sun Life Philippines Chief Executive Officer (CEO) and Country Head Benedict C. Sison attributes this steady performance of the company to the focus it gives on clients, coupled with constantly being driven by its purpose.

“What really drives us is our purpose of helping clients achieve lifetime financial security and live healthier lives,” he said in an e-mail. “Being no. 1 is but a reward for putting our focus on our clients.”

Mr. Sison also noted as an achievement that the company recorded paying claims and maturities amounting to P4.7 billion last year. “This stands for the fulfillment of our promises to our clients, and to be able to carry out our mission in such extraordinary times is an honor,” he said, adding that the company is thankful that it was able to keep its team together and focused amid the pandemic.

Furthermore, the CEO finds Sun Life fortunate to have advisors and employees who genuinely believe in the company’s purpose and are determined to do their part in making it happen. This, he added, enables the company to aim for more robust and impactful strategies to enhance client experiences.

Mr. Sison also sees the company’s longevity — marked by generations of advisors championing Sun Life’s advocacy and generations of clients constantly relying on the company — to have strongly supported Sun Life, especially in a challenging time like the ongoing pandemic.

The CEO noted, nonetheless, the constant imperative to be adaptive to change, which has been further stressed by the pandemic. “[T]he world can change in a day,” he said. “This emphasized the value of a good sustainability strategy and sound risk management practices, highlighting a strength that Sun Life has proven in its 126 years in the Philippines.”

Such strategy must be coupled with a strong culture, he added. “During the extreme lockdowns, it was our company’s culture of collaboration, community, resilience, and passion that allowed us to rethink our plans and pivot quickly to a new operating model,” Mr. Sison added. “When the organization is aligned in its values, purpose, and goals, it is easier to pivot when a crisis occurs.”

A significant part of Sun Life’s pivot amid the pandemic is upgrading its digital capacity, which consist of rolling out its Digitally-Enabled Selling process and Remote Online Medical Examination — both of which, Mr. Sison noted, continue to be key in the successful pursuit of the company’s purpose.

The CEO added that Sun Life has implemented its eRecruitment platform that allows the company to enhance the journey of its new advisors; the Advisor Home Office platform that helps current advisors expedite tasks; and its own eLearning platform that allows its community to continuously expand their knowledge despite the current restrictions.

“Our Human Resources and Business Transformation teams have started efforts to inculcate a digital mindset among our employees,” Mr. Sison continued. “Educational opportunities on the agile approach, risk management, psychological safety, and other programs have been expanded to boost collaboration as we strive to strengthen our digital capabilities.”

Alongside its digital efforts, Sun Life continues to find new ways of reaching people better through a dedicated team for client research; its cross-functional Client-Centric Solutions Idea Generation council that focuses on innovating solutions for clients; as well as external experts and third-party research companies.

As the country proceeds into the ‘now normal’, Sun Life remains grounded on its focus on its clients by enhancing their experience across every platform possible and deepening relationships through emotional connections.

At the same time, it will continue to be focused on its purpose by further defining financial security and healthier lives through four pillars: liquidity, health and protection, wealth accumulation, and wealth transfer.

“Health is an opportunity that this pandemic heightened. It’s an area we will further emphasize and grow,” Mr. Sison said.

In light of these, the CEO said that plans are in place to launch new product solutions, embed technology into more digitally enhanced human capabilities, and further enrich the client-advisor engagement while observing safety protocols.

The company, he added, will continue to engage the business owners segment as it continues to develop solutions and services that will provide them with options to its current suite of products. New solutions are also expected to be introduced for asset management.

BPI-Philam turns challenges into opportunities

May 17, 2021 | 8:00 am

Long before the threat of a pandemic, businesses had embraced modern ways of selling by bringing their products to where the customers are: The Internet. Through powerful e-commerce platforms, brands have learned to widen their reach, target their desired market, and maintain their relevance in ways that weren’t as quick and easy when done through traditional means.

Now that it’s been over a year since COVID-19 shifted our gears, it seems like going digital is the only way a business would not only survive, but thrive.

Getting protection from the comfort of your home
It was tricky at first for the insurance industry to adapt to digital selling, especially since insurance is traditionally a product built on personal relationships between customers and their agents. Insurance companies trained agents to meet with clients and some even dedicated office spaces for sales meetings.

However, months into a continuous lockdown, the Insurance Commission (IC) reviewed some of their existing regulations to better serve the public. Eventually, the IC eased restrictions and allowed insurance companies to fully sell insurance products digitally.

Last November 2020, Commissioner Dennis Funa ruled that “life and non-life insurance companies are hereby allowed to utilize remote selling initiatives in the sale of their products, regardless of amount of premium payable on the policy sold.”

Embracing digital transformation early on
BPI-Philam was quick to adapt to the IC’s new regulations even during pre-pandemic as they were already equipped to digitalize the customer experience.

Customers can review their coverage details, monitor policy values, and even pay their premiums through BPI-Philam’s very own online Customer Portal called ePlan. Bancassurance Sales Executives (BSEs) stationed at BPI and BPI Family Savings Bank branches are provided iPads, equipped with the ability to help customers discover their needs and find an insurance product that best suits them. BPI-Philam also piloted an electronic Know-Your-Customer (eKYC) technology which lets BSEs understand a customer better so they can recommend the right insurance product — no face-to-face meetings required.

These initiatives carried BPI-Philam to the forefront of digital insurance through the years and helped maintain the company’s standing as the country’s number one in bancassurance since 2014.

There’s no end to learning
When things took a sharp turn in 2020, the enhanced community quarantine (ECQ) posed new challenges for BPI-Philam to protect more Filipinos.

“Due to the pandemic, we’ve seen an increased sense of need for life and health insurance among the public in the past few months, and BPI-Philam understands that the implementation of the ECQ makes it inaccessible to them,” said BPI-Philam’s Chief Executive Officer Surendra Menon in a press release.
Despite the challenges, BPI-Philam used this time to further improve the way they fulfill their mission of making insurance easy to get and easy to have for every Filipino, no matter what class they belong to.

With the November ruling of the IC on digital selling, BPI-Philam together with AIA Philam Life introduced Coffee Closing, a digital journey where customers can be insured as fast as twenty minutes, or before a cup of coffee gets cold. BPI-Philam’s Bessie the virtual chatbot assistant was launched on Facebook Messenger and Viber to help customers with their basic policy inquiries and concerns. BPI-Philam also shifted to ePolicy, a legally-binding digital copy of a policy contract which clients can safekeep online without the risk of losing or damaging their contracts. BPI-Philam also made it easier to file a claim by simplifying the claims process.

Flourishing at an extraordinary time like this requires flexibility and a renewed mindset towards change. It’s about thinking ahead of the customer and anticipating their needs. More importantly, it’s also the perfect time for an insurance company to let financial technology transform their business so they can continue to be a dependable partner for their customers.
“As we move forward, BPI-Philam will always be innovating and adapting accordingly,” said Mr. Menon.

Rediscovering investment opportunities in real estate

May 17, 2021 | 8:00 am

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Moving closer into the second half of 2021, the notion of economic recovery is on everyone’s minds, particularly as the government’s COVID-19 vaccination program commences. In the real estate market, where office and commercial spaces have borne the brunt of the pandemic, such a recovery could be close, both in and out of the metro.

BusinessWorld Insights, in partnership with Alveo Land, hosted a webinar titled “Investing on Next Wave Cities: Emerging Potential for Real Estate” that attempted to chart the immediate future of the country’s property sector, especially that of emerging markets outside of the National Capital Region.

Claro Cordero, head of research for Cushman & Wakefield, said that foreign companies, particularly those in the Information Technology Business Process Management sector, are attracted to the upcoming infrastructure projects in areas like Pampanga, Laguna, Cebu, and Davao.

Markets like Pampanga, Laguna, Cebu, and Davao are attracting investments from major developers. Claro Cordero, head of research for Cushman & Wakefield, said during the exclusive webinar that foreign companies, particularly those in the Information Technology Business Process Management (IT-BPM) sector, are attracted to the upcoming infrastructure projects in these areas, along with their young and educated workforce.

“The Philippines is still one of the most attractive emerging markets, not only in the Asia-Pacific region but also in the rest of the global economy. Especially since the Philippines’ very young population is expected to provide an ample source of healthy workforce for at least the next twenty years,” he said.

Ongoing government projects like the NLEx Harbor Link, Metro Manila Skyway Stage 3, Metro Manila Subway, North-South Commuter Railway Project, Malolos-Clark Railway Project, and the Laguna Lake Highway, Mr. Cordero noted, are pushing investors to the north and south of the capital.

“The IT-BPM industry continues to be a strong demand driver for office space in the country, averaging 500,000 square meters. The industry also continued to expand in 2020 amidst the COVID-19 pandemic,” Phillip G. Añonuevo, executive director for commercial leasing at Leechiu Property Consultants, Inc., added.

In 2020, he pointed out, IT-BPM demand in the provinces accounted for a record 43% of the total IT-BPM take-up in the country. The appeal of such markets are bolstered by the availability of PEZA buildings, pushing companies to acquire office spaces there. Iloilo accounted for the biggest take-up in the country, with Cebu, Clark, and Davao following behind.

“Last year, the demand for office space was just around 182,000 square meters. We’re hoping that would normalize to maybe half a million square meters next year, and three or four years down the road. It’s entirely possible that we go back to the higher levels of demand, which would be in the million square meters every year that we experienced in 2018 and 2019,” he said.

Mr. Añonuevo specifically cited three key areas that show great investment potential in the near future: Cebu, Pampanga, and Davao.

“Cebu makes for a good case study with regards to real estate investments. It has all the fundamentals in place: very good government support, and available real estate. Cebu is a good example of a city that is prepared, and has investors who are confident in developing properties there. As a result, Cebu is host to many of the world’s largest companies,” he said.

Phillip G. Añonuevo, executive director for commercial leasing at Leechiu Property Consultants, Inc., cited three key areas that show great investment potential in the near future: Cebu, Pampanga, and Davao.

Pampanga, meanwhile, benefits from a slew of recent infrastructure developments, most notably the upcoming Clark International Airport, and its proximity to Metro Manila. Davao has continually proven itself as a city with solid fundamentals and the rise in the number of master-planned townships in these areas further enhances their foreign appeal.

“Outsourcing to the Philippines will continue to be a viable business strategy for many companies in the next ten or twenty years,” Mr. Añonuevo said.

“I believe that master-planned communities are a very attractive real estate investment, primarily because employers would want to be able to provide the best environment for their employees. It’s just a matter of time before companies become confident again in investing in new office buildings, and we will see the same growth in real estate in the office sector as in previous years.”

The makings of an emerging city

Moving past the pandemic, Mr. Cordero pointed out opportunities in the real estate industry that investors can take advantage of, aside from the expected surge brought about by IT-BPM activities.

The high-end residential segment is expected to ride out the crisis, as such developments provide a safe environment that can support various lifestyles. The industrial segment, meanwhile, is propped up by the boom in e-commerce, increasing the demand for developments near sources of labor. Retail and hospitality segments, however, should expect recovery to take much longer.

“We think that there are various drivers of success in a city that will enable investing in these new wave cities a worthwhile endeavor,” he said.

“We need to look out for these cities that have a lot of investment activities being poured in, cities that put a premium on social inclusion and urban well-being, health equality, cultural and environmental diversity. We need to look at cities with environmental and climate resilience. Cities should have proactive and coordinated prevention, adaption, mitigation strategies to address climate change to safeguard investments,” he added.

Cities with competitive advantages that increase their capacity to generate talent, knowledge, and innovation, meanwhile, are cities that will attract not only co-minded investors but aspiring residents and locators, making it a self-sustaining development. He encouraged investors to look for such developments outside Metro Manila as they would provide a more stable investment than the currently-volatile equity market.

“Investing in real estate during this pandemic also entails a social responsibility as it helps in accelerating economic recovery and growth. Right now, we need to grab the opportunity while interest rates are still very attractive and we need to take advantage of the massive fiscal stimulus that the government is also offering. Take advantage of that and we can do our share in helping the economy regrow in no time,” he said.

Alveo Land, the country’s leading innovative real estate developer, offers a vibrant portfolio of groundbreaking property developments that provides upscale living and working spaces within various thriving and emerging growth centers around the country. Outside the National Capital Region, it has noteworthy projects located in Cagayan de Oro, Cavite, Cebu City, Davao City, Laguna, and Pampanga. For more details, visit www.alveoland.com.ph.

50-MW BulacanSol power plant: Powering the good life through sustainable energy

May 17, 2021 | 8:00 am

MERALCO PowerGen Corp. (MGen) is taking serious strides on the renewable energy front with the start of commercial operations of its first solar power plant.

Now called BulacanSol, the newly completed power station now provides clean and renewable power to the Luzon grid.

Located in San Miguel, Bulacan, the P4.25-billion project is a joint undertaking of MGen Renewable Energy, Inc. (MGreen), which owns 60% of the project; and PowerSource Energy Holdings Corp., with 40%.

BulacanSol last February reached 1.5 million safe man-hours without lost time incident, reflecting the commitment to safety and security in all its activities.

This was achieved notwithstanding hurdles encountered including delays brought about by the COVID-19 pandemic and a string of weather disturbances that limited movements at the power plant site.

“We share this achievement with our employees, engineers, contractors, and partners in the government and private sector who worked together to bring this project into reality. With their perseverance, determination and hard work, we are finally going to see the light,” said PowerSource Chairman Aloysius B. Colayco.

“Not even the COVID-19 pandemic and lockdowns we experienced during the construction period hindered us from completing this renewable project. We are confident that this solar plant will help the much needed power requirements of our country especially during these challenging times,” said Ricardo G. Lazatin, PowerSource president & CEO, said.

MGen President & CEO Rogelio L. Singson acknowledged the very strong support BulacanSol received from national government agencies including the Department of Energy, Energy Regulatory Commission, and the Department of Public Works and Highways; as well as from the local government unit of San Miguel.

BulacanSol signifies the commitment of MGen to help ensure energy security through clean, cost-competitive, and sustainable power.

“We pledge to continue building more environmentally conscious projects as part of our commitment to a sustainable energy transition for the future generations,” said Mr. Singson.

“As the first operational project of MGreen, BulacanSol is a very important milestone that drives us to aggressively pursue more projects that will help us achieve our target of building a renewable energy portfolio with a capacity of up to 1,500MW in the next five to seven years,” he added.

BulacanSol now plays a significant role in One MERALCO Group’s long-term sustainability agenda.

“This is a modest step into renewables but a significant one for MERALCO. We look forward to many more investments in renewables, particularly solar, as we attempt to achieve that balance in fuel sourcing, which will ultimately be biased towards renewables,” MERALCO Chairman Manuel V Pangilinan said.

“In June 2019, MERALCO made the first announcement that it would join the shift to renewable energy and it will adopt sustainable practices for the One MERALCO Group. And today, we realize the very first renewable power plant — the first of several that One MERALCO has lined up for investment and sourcing,” added MERALCO President & CEO Atty. Ray C. Espinosa.

Pru Life UK remains strong on its 25th year as it claims number 1 spot¹ in life insurance industry ranking for 2020

May 17, 2021 | 8:00 am

Pru Life UK remains strong on its 25^th year as it claims number 1 spot^[1] in life insurance industry ranking for 2020

Pru Life UK has been introducing innovations in the industry since its inception in the Philippines in 1996. Its rich history of product and service excellence for Filipinos now culminates with a number one spot, according to the Insurance Commission’s latest ranking of local life insurers in terms of New Business Annual Premium Equivalent (NBAPE) in 2020.

The timing of this momentous feat could not have come better as this year, Pru Life UK also celebrates its 25^th year. Befitting its new position and landmark anniversary, it offers customers more reasons to celebrate with the company through a weeks-long treat.

25^th Anniversary Celebration, raffle bonanza

To celebrate its silver anniversary and number 1 success, Pru Life UK currently holds the We DO Health & Wealth: 25^th Anniversary Celebration, featuring a 25-week free raffle bonanza.

Pru Life UK President and CEO Antonio ‘Jumbing’ De Rosas

“Last year was especially challenging because of the pandemic, but thanks to the remarkable resilience and strength of our people, coupled with the continued loyalty of our new and existing customers, we thrived. This celebration is our simple way of thanking our customers for letting us be their trusted life insurance partner for two-and-a-half decades. In the years to come, we will continue to uphold our promise to be a company that listens and responds to the financial needs of our fellow Filipinos on their journey to achieve their health and wealth goals, and helps them get the most out of life,” added Pru Life UK President and CEO Antonio “Jumbing” De Rosas.

The 25-week raffle draw will award over P6 million worth of prizes to more than 600 winners, including a grand prize winner of P2.5 million cash, 25 winners of an iPhone 12 mini and 24 winners of an e-gift certificate worth P2,500.

Participants can join via the Pulse app available for free on the Apple Store and Google Playstore. Users can increase their chances of winning by being active on the app. Official announcements will be posted on Pru Life UK’s website and official Facebook page one day after the draw.

Rising to the Challenge of the pandemic

As one of their initiatives amidst the COVID-19 pandemic, Pru Life UK embraced digital solutions and channels early on to propel its business further and expand its customer touchpoints. In 2020, it introduced Pulse. As a wellness ecosystem, the app educates and encourages users to lead a healthy lifestyle, enables them to interact with each other and offers rewards for completing health-related challenges. At the height of the pandemic, the company offered free Personal Accident insurance and COVID-19 protection through Pulse as an additional measure to safeguard users against the virus. As of today, the app has been downloaded over four million times.

In 2020, Pru Life UK was also the first insurer to operate digitally, with nearly 100% work-from-home capability. It also further promoted Pulse for customers to easily access digital life protection solutions and payments safely. Meanwhile, the company’s agency force grew by 21% from 2019 to over 44,000 agents in 2020.

New products and services for Filipinos

Pru Life UK continues to provide its customers protection against COVID-19 with its latest PRUPersonal Accident with COVID-19 and vaccine protection cover for adverse reactions that is valid for one year. This free insurance is available to the first 250,000 registrants on the Pulse app before May 31. It is the first-of-its-kind that offers the most comprehensive coverage in the industry. It builds on the company’s free Personal Accident and COVID-19 protection that was launched in April last year, with the added extension of post COVID-19 vaccination coverage.

Another first in the market, Pru Life UK launched its latest health protection product designed for the independent and empowered women in our lives, the PRUHealth Prime – Select Breast Cancer, through Pulse.

The PRUHealth Prime – Select Breast Cancer comes in two packages. With a one-time premium of P150, a lump sum amount of P10,000 is provided upon diagnosis. Meanwhile, a one-time premium of P425 offers a lump sum amount of P10,000 upon diagnosis and a guaranteed amount of P20,000 when undergoing Mastectomy or Lumpectomy. It is the first cancer-specific product offered in the market, and is valid for one year.

Last month, Pru Life UK also introduced two new optional supplemental critical illness (CI) benefits or riders, the Select Top 42 and Select 523 Critical Illness riders, to PRUHealth Prime. The new feature is an insuravest plan with critical illness coverage against all forms of cancer.

The Select Top 4 Critical Illness Benefit provides for top 4 covered late-stage critical illness conditions, while the Select 52 Critical Illness Benefit provides for 52 covered late-stage critical illness conditions.

Customers who are availing of PRUHealth Prime but would want to be covered against other critical conditions can purchase either of the two new critical illness riders during the new business application process and/or after policy issuances.

Pru Life UK is #1 For NBAPE

Meanwhile, in a disclosure by the Insurance Commission (IC), Pru Life UK recorded a total NBAPE of P7.95 billion last year, which represents a 3.7% increase from the company’s NBAPE in 2019.

“We are thrilled to finally announce that we are the new industry leader. I extend my congratulations to our PRULifers — agency leaders, agents, distribution partners, and employees for their relentless commitment to our We DO promise of delivering our products and services with excellence. More importantly, I express our utmost gratitude to all our policyholders for their continued trust in the company,” said Mr. De Rosas.

According to a media statement by the IC, the country’s life insurance industry as a whole recorded a 5.9% growth in premium income to P247.7 billion in 2020 from P233.9 billion in 2019.

The IC has adopted NBAPE, a global standard, to measure the Philippines’ life insurance industry’s sales performance more accurately. This yardstick helps the government body compare companies’ new sales by considering the two payment methods used in the industry — regular premium and single premium (also known as single-pay or one-time pay). A life insurer’s NBAPE is calculated by adding the value of regular premiums from products sold in a given year (or the initial annualized premiums) and 10% of single premiums written in the same period.

Pru Life UK first entered the top 10 list of life insurance companies in terms of First-Year Premiums in 1998. In 2007, it hit the P1-billion mark in terms of Annualized Premium Equivalent, a 130% growth from the previous year. Thirteen years later, it is now on top of the leaderboard, with a total net premium income of P30.9 billion, a 14% increase from P26.9 billion in 2019.

Pru Life UK’s unaudited Quarterly Reports on Selected Financial Statistics (QRSFS) for NBAPE in 2020 have been submitted and will be made available on the IC website https://www.insurance.gov.ph. For more information about Pru Life UK’s offerings and the raffle bonanza, visit www.prulifeuk.com.ph.

^[1] In terms of New Business Annual Premium Equivalent (NBAPE) for 2020

Horizon Manila: Envisioning the ‘City of Tomorrow’

May 17, 2021 | 7:00 am

The COVID-19 pandemic has changed the world as we once knew it. Not only did it force businesses and organizations all over the world to digitize and adopt new technologies, the crisis has also caused many people to reconsider the traditional values that the old world had cherished. More than ever, more people are thinking about social, humanitarian, and environmental issues. It is no longer enough to consider economic gains in this new world, but one must also choose that which would cause the greatest social good.

Horizon Manila, the biggest reclamation project in the City of Manila proposed by JBros Construction Corporation, stands by this philosophy, aiming to recognize the diversity of lifestyles, preferences, and needs among urban populations through its design and development by becoming the City of Tomorrow.

Horizon Manila’s President Jesusito “JR” Legaspi, Jr.

“Horizon Manila aims to serve as an extension of Manila, rather than a ‘New Manila’ altogether. Future residents and workers within Horizon will feel that they are in Manila, but more modern. It’s better. The fact that Horizon is three kilometers away from the ‘mainland’ Manila reinforces the notion that more than just being an extension of Manila, it’s almost a city in itself,” Horizon Manila President Jesusito “JR” Legaspi, Jr. said.

This city extension is built with social development in mind, as Mr. Legaspi pointed out that the 419-hectare reclamation project comes at no cost to the government. Only 49% of the area belongs to the private proponent, with the remaining 51% belonging to the local government. This government share includes roughly 30 hectares of green spaces, approximately 70 hectares of public roads (both of which the private proponent will build and pay for), and over 85 hectares of prime, developable land, comparable to that of Bonifacio Global City.

“The income from the sales or development of the government’s 85 hectares can fund multiple projects for the local community. The project will also generate billions from business and real estate taxes. It is projected that Horizon will create 400,000 new jobs for Filipinos. This mega project is also bound to attract foreign investors back to the country. With all these in mind, one can safely say that Horizon does not only benefit its proponent and its investors, but the community as well,” he added.

Cuervo Appraisers valued JBros’ share in the project to be at P321 billion today. Furthermore, Horizon Manila holds the honor of being the first reclamation project endorsed by Mayor Isko Moreno since he assumed office in 2019. He endorsed the solar reclamation project even before when he was a vice-mayor.

In designing Horizon Manila, JBros Construction enlisted the aid of WTA Architecture and architect William Ti.

“It was important to us that our modern city retains the character of Manila at its very core. It’s a blend of modern master-planning concepts and the rich culture and history of Manila. As someone who grew up in Tondo, William is intimately familiar with the intricacies and nuances of planning an extension of Manila,” Mr. Legaspi said.

There are 28 compact communities and districts within Horizon, which mirror the multiple compact and adjacent communities in Manila City. These districts are designed to cater to a variety of lifestyles, such as an Art District for the creatives, an Innovation & Tech Hub for the lovers of technology, and even a BioTech Campus, situated around Horizon’s Medical Center, for providing assisted living for the elderly. Community facilities within the master plan include an art museum, a theater, a skate park, basketball courts, and libraries.

“The master plan for Horizon is aptly named ‘Manileño’ as it is people-centric. This is strongly reflected by the personal mobility options offered within Horizon. The goal is that, when you’re in Horizon, taking your car is the least convenient transportation option,” Mr. Legaspi added.

Mobility options like bike routes, pedestrian-only and pedestrian-priority zones, water taxis, bus rapid transit (BRTs), and water ferries are available for all residents. However, Horizon is also designed to make walking convenient, pleasant, and interesting with various points of interests scattered around Horizon’s three main islands.

The inland canal and interconnected green network that will ensure pedestrians can walk around Horizon while constantly being surrounded by water and greens. Horizon’s three-island configuration gives it 21 kilometers of water-frontage.

“It is long documented that being around, near, at, or underwater has a therapeutic effect on the human mind. Now, imagine working in Horizon. Anywhere you may be, you are always, at most, five minutes away to the nearest water-frontage. The COVID pandemic has taught us to value our health — both physical and mental. With water in such abundance in Horizon, mental health will be a bit easier to care for,” Mr. Legaspi said.

In addition to the bayside views, Horizon will add over 30 hectares of public parks and green spaces to the City of Manila. Part of this interconnected ‘green network’ in Horizon will be two ‘sunset parks,’ designed to give the best views of the sunset in the area on the westernmost edge of the last island.

“Have you ever heard of people who regret passing up on the opportunity to buy real estate in Bonifacio Global City, ASEANA City, or Entertainment City years ago? They thought then that prices were too expensive,” Mr. Legaspi said.

“But lo and behold, the land prices just continuously went up and have been record-breaking. Horizon is the next big thing in real estate. The opportunity to change the map of Manila does not come often. Be a part of the future and seize the opportunity to make a change. Let’s make Manila better together,” he said.

GMA Network, Inc. announces schedule of annual stockholders’ meeting

May 17, 2021 | 7:00 am

Debt service bill surges in March

May 17, 2021 | 12:34 am

THE NATIONAL GOVERNMENT’S total debt service bill increased more than fivefold from a year ago to P268.41 billion in March as principal payments surged, data from the Bureau of the Treasury (BTr) showed.

The March debt service bill was significantly higher than the P49.29 billion recorded in the same month in 2020.

BTr data showed amortization payments made up 82.2% of the total, and the rest went to interest payments.

Principal payments spiked by 3,478% to P220.75 billion in March from just P6.17 billion a year ago.

Broken down, P202.96 billion was paid to domestic lenders while payments to foreign creditors grew by 188% from a year ago to P17.79 billion.

The government did not settle any principal payments for its local debt in March 2020.

Interest payments likewise rose by 10.6% to P47.67 billion in March from P43.12 billion a year earlier.

This consisted of P39.23 billion in payments for domestic debt, up by 15% year on year, and P8.44 billion for foreign obligations, down by 4%.

For the first quarter, the government’s debt service bill increased by 53.4% to P521.51 billion from P339.98 billion in the same period last year.

The quarter’s total accounted for 41.4% of the programmed P1.26-trillion debt service bill for the entire year.

Principal payments, which accounted for three-fourths of the total, surged by 80% to P395.65 billion. Of which, P252.85 billion went to pay off local debt and the remaining P142.8 billion went to settle external debt.

For the first three months of 2021, interest payments grew by 24% to P125.86 billion from P119.88 billion. This made up of P90.6 billion in interest paid for domestic debt and P35.24 billion for foreign loans.

The government’s overall borrowings reached P1.4 trillion in the first quarter, up by 44.45% year on year.

The Institute of International Finance (IIF) warned last week that debt service will likely become a “greater burden” for many emerging economies including the Philippines amid high spending and low state revenues.

IIF data showed the share of government interest expense over their overall revenues will increase the most in the Philippines among 15 emerging markets studied. The ratio is projected to jump by nearly six percentage points in 2021-2022 from the level in 2018-2019.

Interest payments by the government accounted for 13.3% of state revenues in 2020, up from 11.5% in 2019 and the highest in four years or since 2016’s ratio of 13.9%, based on latest data from the Treasury. — Beatrice M. Laforga

Bank lending likely to pick up by 2^nd half of 2021

May 17, 2021 | 12:33 am

Credit activity may pick up in the second half of the year, once lockdown restrictions are eased. — REUTERS

By Luz Wendy T. Noble, Reporter

SLUGGISH BANK LENDING is expected to continue in the next few months, with improvements likely seen by late 2021 if the pandemic-related restrictions are further eased in the Philippines, according to analysts from credit rating firms.

Despite the liquidity boost and record low policy rates, lending has been muted in recent months as banks tightened credit standards amid uncertainty over the health crisis.

“Credit demand is likely to remain weak in the second quarter as well and could pick up in the second half of 2021. Credit off-take will primarily depend on lifting of restrictions in Manila and National Capital Region,” S&P Global Ratings analyst Nikita Anand said in an e-mail to BusinessWorld.

Strict lockdown measures have been eased in NCR and adjacent provinces, which are now under a general community quarantine (GCQ) but “with heightened restrictions” until May 31. This as the number of reported coronavirus disease 2019 (COVID-19) cases has gone down.

Bank lending declined for the third straight month in February, despite the Bangko Sentral ng Pilipinas’ (BSP) measures to incentivize lending and to infuse liquidity worth P2 trillion to the financial system.

“If you look at the liquidity injection of the BSP in the past year, it has been instrumental in supporting market function. What we’ve seen is that much of this liquidity has been absorbed back into the various facilities of the BSP,” BSP Deputy Governor Francisco G. Dakila, Jr. said at the monetary policy briefing on Wednesday.

“Once the economy starts recovering due to the control of the spread of the virus and the relaxation of restrictions, then we can see that liquidity will not then be a factor constraining growth,” he added, assuring “liquidity is already there.”

Joyce Ong, an analyst at the Financial Institutions Group of Moody’s Investors Service, expects lending to remain sluggish in the next few months before picking up pace later in the year.

“Lending will likely remain muted in the next few months, as businesses halt expansion plans due to the ongoing social-distancing measures and a resurgence in infection rates,” Ms. Ong said in an e-mail.

“Banks will remain cautious in lending to SME (small and medium enterprises) and retail borrowers due to their elevated default risk, because these borrowers tend to have less cash buffers to withstand prolonged financial stress,” she added.

In February, loans for production activities fell by 3.2%. Borrowings from consumers also dropped 9.9%.

“In times of greater uncertainty, lag in the transmission of monetary policy can be expected to be longer. Therefore, the implication of that is that monetary stimulus will be applied on a longer time period than what would have been in more normal times,” Mr. Dakila said on Wednesday.

More business activities are expected to resume with NCR now under a more relaxed GCQ.

S&P’s Ms. Anand said this may spur bank lending moving forward.

“As the economic activity picks up, capital expenditure and working capital requirements from corporate sector should increase. Ramp up of key infrastructure projects could also provide an upside,” she said.

She, however, warned that recurring waves of COVID-19 infections and a slow vaccination rollout could continue to hinder economic and credit growth.

For her part, Ms. Ong said a resumption of some kind of “state of normalcy in the Philippines” in terms of both business and consumer activities could help drive a gradual recovery in lending by the end of the year.

The economy shrank for the fifth consecutive quarter by 4.2% in the January to March period. Household spending continued to decline by 4.8% while capital formation slid by 18.3%.

ARTA aims for record Doing Business score

May 17, 2021 | 12:32 am

Makaty-skyline — PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE ANTI-RED TAPE Authority (ARTA) is aiming to reach the Philippines’ highest score yet in the next global Doing Business report, its top official said.

The World Bank’s annual Doing Business report assesses countries’ competitiveness by measuring regulations that enhance and constrain business activity. Countries with fewer regulations will have a higher ranking on the Doing Business index, which will then boost their attractiveness to foreign investors.

The Philippines rose to 95^th place from 124^th place among 190 economies in the latest report released in 2019 after improving its overall score to 62.8 points from 60.9 points, although it was seventh among 10 Southeast Asian Nations.

“We are hoping that the Philippines will have its highest ever EODB (Ease of Doing Business) score in the history since the survey started,” ARTA Director-General Jeremiah B. Belgica said in a mobile message on Saturday.

Although starting a business became easier after the country abolished the minimum capital requirement for domestic companies and made dealing with construction permits easier, the report showed that the country still needed to improve enforcing contracts, trading across borders, and registering property.

“We continue to work on and improve the ‘starting a business’ sector,” Mr. Belgica said. The rollout of a central business portal, he said, would aid in these efforts.

In a recent joint memorandum circular issued by ARTA and other government agencies, all local government units have to set up the electronic business one-stop shop or automate their business processing and licensing systems by June 17.

Local governments that have fully put up an online business registration service must cut the number of steps to one. Business registration must be processed within three business days, while the number of signatories on permits must be reduced to three people.

The Philippines continues to be plagued with red tape issues during the pandemic. ARTA recently issued a show-cause order to the Food and Drug Authority for alleged delays in processing 600 drug applications.

The World Bank faced recent criticism over reported irregularities regarding data changes in the 2018 and 2020 versions of its flagship report. It paused the release of the latest edition and noted corrections would be incorporated in the upcoming report.

ARTA also called for a review of the methodology of the report, raising concerns about the data collection method. The Doing Business survey team, Mr. Belgica said, should select respondents that are familiar with the processes or regulations being assessed.

The World Bank report measures competitiveness of economies in doing business using several indicators: starting a business, employing workers, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

In 2019, the Philippines created the ARTA, one of the offshoots of an Ease of Doing Business Act that President Rodrigo R. Duterte signed in the year prior. — Jenina P. Ibañez