Insurer introduces new fund product for small investors

Insurance firm Sun Life Grepa Financial Inc. (SLGFI) has launched another fund product for small Filipino investors who want to participate in the world of the stock market and “let them enjoy the benefits of Asia’s fastest-growing economy.”

The SLGFI said its new product, SLG Growth Plus, “is a peso-denominated equity fund that gives investors the chance to enjoy the potential gains of investing in the stock market.”

“Not only does this fund allow clients to access upside opportunities, it has a unique feature that can also limit downside risks relative to typical equity funds,” the company said.

It said the reliability of the fund would be anchored on the selection of a diverse portfolio of high dividend-paying equity instruments issued by top-tier and financially stable companies listed in the Philippine Stock Exchange (PSE).

“These companies were selected based on factors such as operational performance, valuation and market sentiment. The dividend earnings are then automatically reinvested to contribute to the price appreciation of the fund and to soften the impact of a drop in stock prices during a market downturn. The fund also adopts an active portfolio management strategy which allows the fund to swiftly reallocate equity assets as needed, within its investment,” it added.

The SLGFI said the introduction of another investment product was due to the continuing splendid performance of the Philippine economy, which was described as “one of the brightest spots for investments today.”

“But how does this translate to tangible benefits for the common Filipino? This new investment product would allow Filipinos to benefit from the country’s positive outlook and provide them the opportunity to participate in the growth of the Philippine market,” it said.

“The Philippines is still one of the fastest-growing markets in Asia despite recent weakness in the equity market performance. Our country’s economic fundamentals remain intact and our fund managers believe that the long-term growth story of the Philippines is still solid,” the company said.

Richard Lim, SLGFI president, said: “These market lows actually present a golden opportunity for clients to enter the market at cheaper levels.”

He said the fund would be best suited for “clients with longer investment horizons and greater tolerance for risk.”

-- Business Mirror

SSS launches online issuance of social-security numbers

The Social Security System (SSS) is now accepting online applications for SSS membership on its web site at www.sss.gov.ph. SSS has adopted a two-phase application process for the online issuance of SS numbers. The web system will initially verify if the applicant already has an existing SS number using the full name and birth date given by the worker, who must also provide an email address as part of the first phase.

The process of online application for SSS membership has two steps.

The first step is for the applicant to provide his full name and birth date so that the SSS web site can verify whether an SSS number had already been issued to such person.

“Once the SSS has determined that the applicant has no previous SSS number, the Web system will prompt the worker to provide additional details during the second phase, such as the home address, contact information, marital status, and names of the spouse, parents and children,” SSS Officer in Charge of the Service Delivery Department Renato Malto said.

The SSS number that will be issued to online applicants, however, will only be temporary and would have to be converted to permanent status by presenting personally before any SSS branch the accepted supporting documents of identity, such as a birth certificate, a baptismal certificate or a valid passport.

“Once the worker has successfully changed the temporary SS number to a permanent one, it can be used to file for various SSS benefits and loan privileges, as well as to apply for the UMID [Unified Multipurpose Identification] card if at least one monthly contribution has already been posted,” Malto said.

In 2014 some 2.3 million manual applications forms for SSS membership were received at SSS branches nationwide.

Builders happy with low interest rates on housing loans

An association of housing developers in Davao city said the more affordable housing loan interest rates now offered by the Home Mutual Development Fund or the Pag-ibig Fund should help perk up anew the construction of socialized housing units across the country.

The low interest rate environment should also help reduce at a faster rate the national housing backlog of some 4 million units that has not been addressed effectively for several years already, Carlito Dublan, president of the Davao regional chapter of the Organization of Socialized Housing Developers of the Philippines, said.

Dublan said the Pagibig Fund has reduced its interest rate to 7 percent since last year. “This put that agency at the competitive level with the banks, which impose between 6.5 percent and 7 percent,” he said.

But he added the housing developers have a request pending action from the government concerning the price of socialized housing units, saying that at Php400,000 to Php450,000 per unit “is the price that is not reflective of current market prices.”

“That’s the price 10 years ago. Now the land we are buying are more than double the price 10 years ago,” he said.

That would explain why developers “have to be creative” to fit the government price model. He did not say if this model also imputes the complaints of homeowners about substandard materials or inadequate number of building materials, such as steel bars, for certain parts of the house, like the roof and ceiling support.

“Let’s watch over the next few months if the changes in the housing sector are implemented soon,” he added.

Dublan said the reforms in the construction sector include the several items that housing developers were able to wrench from Housing Land Use and Regulatory Use and the other national government housing agencies.

“Many of these reforms that we ask them were mostly regulations that are too restrictive for us in the private construction sector,” he said.

For instance, “we were able to persuade the government to throw away their regulation that we have to comply with their fixed deadline of one year to three years to construct a housing project”.

“This time, they would look at the individual work program that developers would submit to them, where the timetable is also included,” he said.

-- Business Mirror

Banks report tighter credit standards in Q3

Even tighter credit standards were noted across real-estate loans in the third quarter this year, as banks passed on to their borrowers the more stringent oversight exercised by regulators on real-estate loans during the period.

In a recent report, the central bank said lenders across the country reported a net tightening of their overall credit standards for real-estate loans in the July-to-September period.

This was the 13th consecutive quarter that the banks indicated a net tightening of standards in real-estate lending under the diffusion index  approach, where the number of banks that indicated tighter credit standards proved more numerous than banks that indicated otherwise.

“The net tightening of overall credit standards for commercial real-estate loans was attributed by respondent banks largely to perceived stricter oversight of banks’ real-estate exposure,” the central bank said.

The Bangko Sentral ng Pilipinas previously implemented a number of measures to help monitor the banks’ exposure to real estate as part of the larger effort to keep the financial system stable and avoid asset bubbles and asset erosion down the line.

These included more detailed reports on real-estate exposure and stress tests on the banks, the maiden of which report was seen released later this year.

In particular, respondent banks reported of stricter collateral requirements and loan covenants, along with wider loan margins, reduced credit-line sizes, shorter loan maturities and increased use of interest-rate floors for commercial real-estate loans.

Demand for commercial real-estate loans were steady during the month but a number of banks indicated increased demand for real-estate loans on the back of improved economic outlook, as well as increased customer investments in plants or equipment.

For the next quarter, banks that anticipate a slight tightening of their credit standards outnumbered those expecting the opposite.

-- Business Mirror

Tax reform may revive PH Real Estate investment trusts (REIT) industry

Real Estate investment trusts (REIT) may get a new lease on life as the government evaluates the adoption of a comprehensive tax reform program, an official of the Securities and Exchange Commission said. The Real Estate Investment Trust Act lapsed into law in December 2009 with none of the major property developers coming forward with their prospective offerings.

“Tax reform is in the air. It’s usually in the context of income tax, but you know, tax rin ito (REIT is also tax and it could be part of the reform),” Commissioner Ephyro Luis B. Amatong told reporters last Oct. 22, referring to the changes in the REIT Law.

The Aquino government had imposed stringent REIT rules to limit revenue losses caused by laws that grant generous tax perks. Taxation on asset transfers and issues on ownership have prompted property giants such as Ayala Land, Inc., SM Prime Holdings, Inc. and Robinsons Land Corp. to shelve proposed REIT listings.

Asked if there is still time to introduce changes to the law before the election, Mr. Amatong said: “Even if it’s not, it might be useful to start the conversation now so that when the next administration or the new Congress comes into office, mayroon nang pinag-uuspaan (discussions may resume). We hit the ground running.”

While the Philippines’ REIT Law has been in place since 2009, Indonesia and Thailand have forged ahead and saw their first REIT listings in 2013 and 2014, respectively, according to data from the Philippine Stock Exchange (PSE).

REIT listings have increased to 145 with a total market capitalization of $134.5 billion, from 118 listings valued at $65.1 billion in 2009, according to data from the exchange, citing property consultancy firm CBRE.

“It’s a wake-up call for our regulators. We need to reconsider how we can make it work,” PSE Chief Operating Officer Roel A. Refran said in an interview.

The government wants to revive talks with the real estate industry to achieve a compromise that may allow the country’s REIT market to finally take off six years after the law was passed.

“It’s difficult putting your best foot forward. There’s really a process. There’s room to evolve,” Mr. Amatong said.

Financial regulators are taking a precaution in the aftermath of the Asian financial crisis that hit the real estate industry, the commissioner said.

“We don’t want that to happen again but at the same time we don’t want to unnecessarily pull back the growth of the real estate industry,” Mr. Amatong said.

-- Business World

Property firms told to build outside the megacities

The housing backlog in the Philippines currently stands at 5.5 million units but is expanding by 250,000 units each year, because only about 150,000 socialized housing are built annually, based on more recent government data.

But according to housing executives, this is clearly not just a problem of building enough housing, but rather building houses in well-planned new communities that host jobs and livelihood activities outside of already overcrowded cities like Metro Manila.

In the 2014 World Cities Summit hosted by Singapore, the Shell group of companies unveiled a somewhat troubling study, titled “New Lens Scenarios,” which identified Manila as an “underprivileged, crowded city.”

The study described Manila (but it could have been referring to other Metro Manila cities, as well) as a decrepit city with a high population density and low GDP per capita, meaning too many jobless people in one place.

It warned that rapid urbanization results from people flocking to megacities in search of oftentimes nonexistent jobs and livelihood. Half of the world’s population live in overcrowded megacities, Shell said.

It is against this backdrop that consumers and industry observers alike get to appreciate housing developments outside of the megacities like most of the 17 completed and nine ongoing low- and middle-income projects of real-estate firm Property Company of Friends Inc.  or Pro-Friends, for example.

Pro-Friends has been in the business since 1999, and it has shown foresight in focusing its developments in the province of Cavite which, like Laguna, hosts job-producing economic enclaves.

Take for example Pro-Friends’ flagship development, the Lancaster New City in 1,107 hectares straddling Kawit, Imus and General Trias in Cavite. About 14,800 families have owned units in Lancaster since 2007.

With everything that families need like access to churches, schools, health care and, of course jobs (at the SunTech iPark), Lancaster is fast-realizing its developer’s vision of becoming a self-sustaining township.

Shell’s study stressed that “tomorrow’s success will depend on how well these are managed and how quickly government, business and civil society improve their collaboration today.”

Reflecting improved collaboration among stakeholders and players in property development, Pro-Friends this year inked a major industry-shaking deal with GT Capital Holdings Inc. of the Metrobank group under which the latter acquired 22.68 percent of Pro-Friends for Php7.24 billion.

The deal, which includes the option for GT to acquire 51 percent of Pro-Friends within three years, has made the company a tempting target for attack, which it promptly addressed under the Cybercrime law.

The government has had a bad track record at socialized housing, such as the BLISS project and its post-Yolanda rehabilitation effort. What the next government can, thus, do is extend more financial assistance to people in availing affordable housing in communities where they also work.  While at it, the government should fast track the construction of mass-transport systems to the provinces, like Cavite and Laguna to decongest Metro Manila.

-- Business Mirrot

RCBC seen lending to 12 million clients over five years

Rizal Commercial Banking Corp. (RCBC) anticipates robust growth in its retail lending business that should help it achieve its goal of having 12 million clients five years forward. RCBC First Vice President, Retail Banking Group and Product and Sales Support Division Head Emmanuel Mari Valdes said its retail lending business, while only two years old, extends loans worth Php1 million to Php5 million to clients.

“The retail lending proposition of the bank, called Rizal Biz, is a key proposition we have, and should help attract new customers and create new opportunities for the bank to attain it's vision. 
He also said RCBC President Lorenzo Tan targets acquiring 12 million clients over the next five years."

The bank currently has 7 million clients. The Rizal Biz is focused on serving the unserved and underserved markets in the countryside. The service is aimed mostly at retailers or those who own a beauty parlor or who operate junkshops, hardware stores, handicraft and bag manufacturers.

The service has already attracted 250 clients so far and the number is picking up, mostly in the provincial areas. As retailer, it extends loans averaging Php2 million to Php3 million.

RCBC Senior Vice President Matias Paloso said the retail loan portfolio totaled P300 million as of September which surpassed its Php250-million target for the year.

Because this came from a low base, Paloso projects a 30-percent growth in retail business which he considers very conservative.

He said they require proper documentation and collateral such as a house and lot and the business itself.

“It’s hard to manage small businesses. We require collateral. So far, we do not have past dues, and we do not encounter problems. We have no approval to engage in moveable collaterals. We don’t have chattel,” he added.

Meanwhile, RCBC has deployed the Touch Q Lobby Management System, which is a self-service teller assist kiosk in six branches.

It allocated Php60 million for the 100 units that will be deployed in 50 branches with the biggest foot traffic.

The target is to deploy the 100 units until January 2016.

“With the Touch Q, we can reduce servicing in branch by 30 percent or bring in 60 percent more efficiency or faster customer service,” Valdes said.

-- Business Mirror

5th Values Advocacy Program of Fortune Life Insurance Co.

Values Advocacy Program of Fortune Life Insurance Co. is now on its fifth year of promoting the values of hard work and discipline among Filipino teachers and students. An ongoing project with the Department of Education (DepEd) and Marylindbert International, the company launches the program’s fifth year today, October 21, at the Bulwagan ng Karunungan, DepEd Central Office in Pasig City.

Created with the goal of supporting the country’s educational system, the program features books on financial literacy and talks targeted on teachers’ welfare—all being consistently distributed and conducted in different parts of the Philippines. The books contain the life story of Fortune Life Chairman Emeritus and Founder Ambassador Antonio L. Cabangon Chua, whose success deeply inspires students and teachers alike. Meanwhile, teaching orientation and demonstrations and school visit interventions in the form of life coaching seminars motivate teachers to excel in their chosen vocation.

For 2015, along with the launch of a new year of the program, the Fourth Ambassador Antonio L. Cabangon Chua Gintong Parangal Para sa Edukasyon will be awarded to teachers who have worked diligently in campaigning the program’s advocacies. Five winners and three honorable mention awardees from various parts of the country will be recognized and awarded with trophies and special prizes. The five winners are Jose O. Barcelo from Camp Tinio Elementary School, Cabanatuan City, Nueva Ecija; Lolita G. Baylosis from Andres Bonifacio Elementary School, Bacolod City; Dr. Enerio E. Ebisa from Doña Juana Actub Lluch Memorial Central School, Pala-o, Iligan City; Dr. Maria Teresita R. Gapate from San Sebastian Elementary School, San Vicente, Ilocos Sur; and Clariza G.  Terones from DepEd Division of Calamba City, Laguna.

The three honorable mentions are Edwin Haniel Engana from Benigno S. Aquino High School, Makati City; Dr. Roselyn Q. Golfo from Lucena North I Elementary School, Lucena City, Quezon; and Librado F. Torres from DepEd Division of Pasay City.

Dignitaries from the DepEd and the ALC Group of Companies, whose flagship company is Fortune Life Insurance, are expected to join the teacher-awardees and the rest of the Values Advocacy Program’s supporters in an afternoon of pride and recognition.

-- Business Mirror

How to Create a Scalable Payments System

Multitude of Companies – Attempts on Scalable Payment Systems

A whole multitude of companies in Fintech have been making attempts in developing scalable payment systems. As per EY, one of the largest markets in UK Fintech is payment at around £8bn per year. In order to make money new payment provider should measure quickly for the purpose of economics to operate.

This would need proposition which would be knowingly convincing for consumers as well as merchants together with the different other players in the value chain. Currently though payment tends to work, it is not perfect by any means but all the same it works.

It is essential to add value to a payment system in order to make a successful business from it. It has been observed that by just making payment is great but not good enough. Should the option be given of paying with your phone through contactless instead of a credit card, at a restaurant, the difference would not be big. One would have to go through the procedure of asking for the check, viewing it and instead of paying with the credit card it could be paid with the phone. Hence the motivation of utilising the phone is not strong.

Technology Incorporated Into Restaurant Apps

This technology for instance has been incorporated into restaurant apps, permitting consumers to pay for the total bill or split the bill with others through Apple Pay, PayPal or any registered card on a MyCheck account, without the need of staff. Moreover, it also permits sophisticated incentive as well as loyalty programs created to personalize the dining experience for the consumers.

For instance, when a customer tends to visit a restaurant, they would need to view the menu which can be done through the restaurant’s app, powered by MyCheck. If the customer prefers to redeem his coupons or offers or even participate with loyalty programs, he could do the same through the app without the need of involving paper vouchers or loyalty cards where the accumulation and redemptions seems to be automatic.

When the consumer wants to pay, the need of asking for the check does not arise, since the MyCheck platform has been incorporated so that the consumer can pay as well as split the bill utilising their smartphone.

Payment Apps do not Generate Revenue from Consumers

With plenty of competition around, individuals tend to comprehend that it is not just about food but also about the experience. Making an effort of leveraging the potential of the smartphone, one could develop an engaged though discreet association with the guests. With regards to monetizing an app, the same is based on what the app is attempting to achieve.

Several of the payment apps do not generate revenue from their consumers, the merchant tend to pay them. The effect is that since there seems to be many platforms on the market, one would have to prove the value that would be added to a business for them to get involved. The amazing thing regarding MyCheck is that it is partnered with chains that have been already functioning where their success would be success for all.

The challenge lies in how to be loyal and how the visits are repeated while at the same time offer better customer experience. According to data, it has been observed that once a user tends to utilise the app more than twice they get hooked to it. A bit of convincing is needed to let them use it twice and thereafter they tend to get used to the experience and like it.

Be wary of online shopping scams - DTI

Department of Trade and Industry (DTI) is advising the public to be wary of online shopping scams. Even with the convenience that online shopping brings to consumers who want to avoid the crowds in traditional markets, it still holds risks in view of the anonymity being offered by the Internet, DTI warned in a statement.

DTI advised consumers to be vigilant and proactive in protecting their welfare and rights by taking steps to make sure their online purchases are secure.

These precautions include protecting one’s computer. “Keep security software such as anti-virus and anti-spyware up-to-date. Update your browser regularly. Exercise caution when using public computers to amke online purchases,” the statement read.

DTI also told online shoppers to research the background of their sellers. “Check online reviews and customer feedback to find out if the individual and/or business are reputable.”

Shoppers were advised to know the terms of sale by checking terms of conditions of transactions, warranties, refund and replacement policies, mechanisms for addressing buyer complaints and costs or other additional charges to the item price.

The agency also urged online shoppers to make sure passwords of their online accounts are strong, using a combination of letters, numbers and other characters. Change passwords regularly and use different passwords for different accounts.

Before signing up or making purchases, DTI urged users to read and understand the business’ terms and conditions and privacy policies.

They also advised a review of website security, such as a padlock symbol displayed on the bottom right-hand corner of the webpage or on the address bar. Clicking on the symbol will show a valid security certificate.

DTI also warned against making payments directly to a seller’s bank account but instead use a website’s preferred payment method to ensure access to disputes resolutions processes. They also encourage cash-on-delivery payments.

8 Bad Money Habits and How to Break Them

Handling Finances – Money Habits

Managing your funds is often related to the habit one may cultivate and money habits could decide how a person handles their finances. The following could help in comprehending some of the money habits which one may not be aware of, but which would be draining away your finances

1. Spending more than the earnings

This is could be the most awful habit which could hurt the well-being of your finances when one tends to continuously spend beyond their means and when the expenses exceeds the income coming in, towards the end of the month one realises that they have overspent. The remedy is that one should monitor the spending habits and keep a tab on overspending.

This could be done by checking on the expenses and segregating them into `need base’ and `want base’ opting on what is essential and refraining from unwanted purchases. A budget could be prepared to keep the spending activity under control. If the need base on essentials tend to make you spend more than the earnings, one would need to focus on increasing their income either through loans or credit card debt. However this too should be taken into consideration with regards to repayment.

2. Postponing financial decisions for tomorrow which may never come

Often we tend to put off investment plans for a later date which never turns up or it tends to get pushed off every month since no savings have been done. And postponing financial decisions is worse than making bad choices. Since the earnings saved tend to generate additional income by way of interest earned, the sooner the investment is made, better are the chances of increasing your savings. The right opportunity of investing should be done when one tends to have the funds. Delaying in investments could lower your ultimate corpus.

3. Falling into debts for wants instead of needs

We live in a competitive world and very often we tend to get carried away with lifestyle based purchases and indulge in purchases which may not be needed, leading us into unnecessary debt. If the much needed purchases tend to constantly run you into debts, it is a habit which needs to be kept under control to save from future distress. Debt is for the vital and planned purchases which could be indulging in manageable debt for the purchase of a home or a child’s education though it would not be appropriate to fund for luxury items.

4.Gambling instead of investing

Several people indulge in experimenting in the stock market without really comprehending its concept which could be dangerous and as the saying goes `little knowledge could be dangerous’, this could be applied here. Often a person may get a tip on some particular stock which may be a good bet or someone may inform that Options are a good way of making money.

If one intends putting saving into investments without any knowledge about it or the risk involved and just speculating, it could be one form of gambling and not investing. Several people have been indulging in this unknowledgeable move and have repented in doing so. The best remedy is to place your investments on your goals. Ensure to refrain from investment option which may seem too good to be true. There are no shortcuts to investment and prudent disciplined investment tends to work in growing wealth.

5. Refraining from saving regularly

Most of the people do not save regularly which is common while indulging in spend first and save later. Organising your expenses before saving makes your saving an unreliable matter. Hence adopt a habit on how much one can save regularly keeping aside the saving as soon as the income comes in. This would be helpful in saving habit instead of spending.

6. Being risk averse

One may consider not taking risks could be good and would make you cautious of bad investments. But if risk aversion prevents you from investing in some risky though essential investments it could be nothing a bad habit. Risk aversion seems natural though it should not hold anyone back. Not taking risk is not like understanding risk and several investors understand risk instead of avoiding it. If one intends to beat inflation and increase wealth, then risk taking seems to be essential. Here again what matters is the risk profile of investment goals instead of your own risk profile wherein one could invest in safe options such as Bank FD though could expect lower than inflation returns.

7. Paying dues after the due date

If one tends to constantly make late payments against credit card bills or utility bill you would be incurring additional expenses by way of interest which could probably lead you to being broke paying up the hefty interest rates charged against late payment. Payment of bills needs to be made on time to avoid late payment charges.

8. Indulging in habits which are financially taxing

Smoking, dining out too often or drinking spree could lead to a substantial financial burden and though these habits could be considered as small expenses but over a period of time could add up to weighty amounts. This needs to be stopped to avoid further tension on health and money.

Insurance Commission adopt framework for micro pre-need plans

The Insurance Commission (IC) and the preneed industry have adopted the implementing rules on micro preneed products to be sold by preneed companies to lower income families.

The implementing rules agreed upon by IC and the pre need industry will push for the general policy to provide a dedicated savings mechanism for the poor, particularly for needs like education, memorial services and pension.

Insurance Commissioner Emmanuel F. Dooc issued Insurance Memorandum Circular 2015-51 adopting the implementing rules agreed upon between the IC and the preneed industry after consultations last month.

“The micro preneed framework aims to [1] provide an opportunity to the low income sector to have access to preneed products and services that will cater to their needs; [2] encourage the participation of the preneed industry in offering micro preneed products and services to promote the financial well-being of the low-income sector; and [3] provide the mechanism to ensure the protection of planholders’ rights and privileges,” Dooc said in the memorandum circular.

Under the rules agreed upon, all micro preneed plans issued by preneed companies would have to abide by the three paramount considerations that the micro preneed plans be accessible, affordable, and the wordings of the contract must be clear and simple.

The micro preneed plans must also be fixed value plans, or those that the benefits and cost are fixed and predetermined at the time of the purchase of the plan.

Dooc said the offering of micro preneed plans will provide preneed companies with an additional market, while helping the country achieve inclusive growth for lower income families by providing them with a savings instrument that they can tap when emergencies happen.

The new implementing rules provide that premium payments computed on a daily basis for micro preneed plans should not exceed 7.5 percent of the current daily minimum-wage rate for nonagricultural workers in Metro Manila.

The maximum sum of guaranteed benefits or services should also be not more than 1,000 times the daily minimum-wage rate for nonagricultural workers in Metro Manila.

To further protect the interest of planholders of micro preneed plans, the IC also requires that the premium payments made to preneed companies be placed in a separate micro preneed trust fund that will be established for each of the preneed plan category such as education, memorial services and pension.

-- Business Mirror

EastWest gets okay for insurance brokerage

Last July, EastWest gets SEC okay for insurance brokerage, and has secured another requisite approval to set up its planned wholly owned non-life insurance brokerage subsidiary. East West Insurance, a wholly owned subsidiary of East West Banking Corporation, will primarily engage in the business of non-life insurance brokerage.

EastWest Bank said this subsidiary will be separate from its planned joint venture life insurance firm. Also, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, has approved the initial equity investment of East West Banking Corporation (PSE:EW) in the proposed joint venture with Ageas Insurance International.

Last May, the listed lender announced that it has entered into a joint venture agreement with Belgium-based insurer Ageas Insurance International N.V. (Ageas) to up a new life insurance company in the Philippines which is seen starting operations by the end of the year.

The aim is to build the premier Bancassurance business in the Philippines offering tailor-made insurance solutions to the customers of EW Bank supported by high quality service and state-of-art technology.

The insurance business will benefit from EW Bank’s fast growing customer base. With more than 400 branch stores, the bank has the 7th largest distribution network amongst banks in the Philippines, the bank said in a statement.

Ageas will contribute its proven Bancassurance skills and best practices from its successful businesses in Asia and Europe.
“We have always viewed Bancassurance as an integral part of our business model. We see it as a necessary ingredient to have complete product offerings for the financial services needs of our target market segments. Specifically, the consumer and middle market corporate segments. We are pleased to partner with Ageas, one of the major insurance providers in the world,” said Tony C. Moncupa Jr., President and CEO of EW Bank, during the signing of the agreement earlier.

“The potential is huge given that the current Life insurance penetration rate of around 1.5% is one of the lowest in Asia. We are very pleased to be a partner to EW Bank which has a strong management and clear ambition to grow. We are convinced that together we can deliver another successful partnership in Asia,” Gary Crist, CEO of Ageas Asia was quoted as saying.

The new insurance company to be named EastWest Ageas Life, subject to the requisite regulatory approvals, will enable EastWest Bank to offer life insurance products to its customers and increase its revenue base and market share, the listed lender said in an earlier disclosure to the Philippine Stock Exchange.

The initial paid-in capital of the joint venture will be Php2 billion and EastWest will hold 50% minus one share, while Ageas will hold 50% plus one share. EastWest Bank said it will get approximately 50% income share from the life insurance company, it said.

The partnership will be for a 20-year exclusive distribution agreement, EastWest Bank said.

EastWest Bank posted a net income of Php2.073 billion in 2014, which is almost flat compared to the Php2.056 billion it posted in 2013 as lower trading gains dragged on its profit.

13 Money management quotes about debt

 

Image by www.dynamiccio.com

Debt is not a sin but stay away from it and you’ll be in a safer place . That is how my relatives shaped my thinking towards debt. You should hate yourself being in debt since you want to be free. Financial freedom should be your priority because you will be in a state of liberty to do anything that you want. When you can’t sleep because you owe someone that means you are  ahead from other people. Here are some of the quotes that can help you change your mindset towards debt.

David Isaiah Angway Is a Financial Evangelist

Rewire your retirement

Retirementis a phase of life regardless of one’s age. Finally, you will have the freedom and the time of your life to work and let your vocation be a vacation. You will have the perks and choices to relax or make yourself productive again. It could be something you really wanted to do without   pressure. The exciting part is you will have now the opportunity and time to make the next chapter of your life more worthwhile. One thing you should not forget to do so before you retire is to make sure that your financial and social well-being are well taken care of .The question is, how will you start?

1.       Reflect what you have done so far - In the Philippines as of 2015 our average lifespan for both men and women is 72.75 years old (Source: Life Expectancy).  Retirement means second life so every moment should never be wasted. Evaluate your past, your current status and be excited for tomorrow knowing your purpose. Psychological research says that these are critical components of positive changes in life.  Check your finances; ask yourself whether you have enoughto live for the next 20-30 years. When you don’t have enough funds be practical or seek help from a finance professional.  Look at your bucket lists. You have a new path to travel. Successful retirees are consistent dreamers and action takers. Pondering on everything can take you to the next level.

2.       Be more fruitful – Having so much time but no concrete plans is equivalent to fatal boredom. If you are 60 years old and below, you still got plenty of options to choose from. Kentucky Fried Chicken founder Colonel Sanders took a big leap of faith when he used his retirement income of $105 from Social Security to sell his secret chicken recipe. With an incredible work ethics he built an empire. A fast food chain that we patronize using the only resources he got. Start making your life exciting. Expand your horizon by going out from your comfort zone.

3.       Be a mentor – “The heights and golden years of your life’’. Your life’s experiences will be    the guiding light and a compass to those who are lostin the dark. Create a legacy that will leave an impression and an impact to the society. Philanthropy is an old way of giving back to the community but look at Tony Meloto, the founder of Gawad Kalinga taught us that business is not all about capitalism but you can make a better world through the modern form of giving which is social entrepreneurship.

4.       Travel and explore unfamiliar locations– A time to relax and unwind. If you had been stuck in a place for a long period of time travelling will increase your openness to new experiences.  This is ideal if you were able to save more money. Visit other places nearby will be more feasible if funds are not enough. The more you interact with other people and adapt to their practices will not only gives you fresh perspective but also makes you creative. Traveling can give you liberty to explore new heights. Treat yourself and have time for a little bit of luxury sometimes.

5.       Find a fitness group – Good health and enough energy to get things done daily is a reward. One of your core responsibilities while you are ageing is to sustain your body’s health and wellness. Zumba class at the gym or at home, kickboxing, swimming and high Intensive work outs will bring out the best of you. Choose an exercise or an activity that best suits you.   A famous evangelist once said, “When money is lost; nothing is lost, but when health is lost, something is lost”. Health is wealth as they say. You are not getting any younger. Try to join a club or a wellness and fitness program wherein professional coaches will train you.  It will help you get motivated and reach a goal that you are trying to achieve. Do it now before it is too late

 Start designing the second half of your life. Do not let your fears of retirement gobble you up. Give your life some dignity to retire. Build your wealth brick by brick and soon you will build a bridge that will sustain the life you dreamed of a long time ago. For those retirees, never let dull moments kill and destroy your precious time. Make the most of what you have and be prepared. “Aspire to inspire before you expire.” 

David Isaiah Angway Is a Financial Evangelist

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