Coco Life Audited Financial Statement 2014

UNITED COCONUT PLANTERS LIFE ASSURANCE
CORPORATION
SEPARATE FINANCIAL STATEMENTS
December 31, 2014 and 2013
ABCD
R.G. Manabat & Co.

The KPMG Center, 9/F
6787 Ayala Avenue
Makati City 1226, Metro Manila, Philippines
Telephone
Fax
Internet
E-Mail
+63 (2) 885 7000

+63 (2) 894 1985
www.kpmg.com.ph
ph-inquiry@kpmg.com
Branches: Subic Cebu Bacolod Iloilo
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Stockholders

United Coconut Planters Life Assurance Corporation
Report on the Separate Financial Statements
We have audited the accompanying separate financial statements of United Coconut Planters Life
Assurance Corporation (the Parent Company), which comprise the separate statements of
financial position as at December 31, 2014 and 2013, and the separate statements of
comprehensive income, separate statements of changes in equity and separate statements of cash
flows for the years then ended, and notes, comprising a summary of significant accounting
policies and other explanatory information.
Managements Responsibility for the Separate Financial Statements
Management is responsible for the preparation and fair presentation of these separate financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of separate financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these separate financial statements based on our
audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the separate financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the separate financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the separate financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entitys preparation and fair presentation of the separate financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.
2015 R.G. Manabat & Co., a Philippine partnership and a member firm
of the KPMG network of independent firms affiliated with KPMG International
Cooperative ("KPMG International"), a Swiss entity. KPMG International
provides no client services. No member firm has any authority to obligate
or bind KPMG International or any other member firm vis--vis third parties,
nor does KPMG International have any such authority to obligate or bind any
p firm. All rights reserved.
member
i
a
PRC-BOA Registration No. 0003, valid until December 31, 2016

SEC Accreditation No. 0004-FR-4, Group A, valid until November 10, 2017
IC Accreditation No. F-2014/014-R, valid until August 26, 2017
BSP Accredited, Category A, valid until December 17, 2017
ABCD
Basis for Qualified Opinion

The Parent Company carries its investments in United Coconut Planters Bank (UCPB) shares as
available-for-sale (AFS) financial assets at cost as disclosed in Note 11 of the notes to financial
statements. As required under Philippine Financial Reporting Standards, such AFS financial
assets should have been carried at cost less impairment losses. Had the Parent Company
recognized such impairment losses, the carrying amounts of the AFS financial assets and retained
earnings as of December 31, 2014 and 2013 should have been reduced by P552 million.
Qualified Opinion
In our opinion, except for the possible effects on the financial statements of the matter described
in the Basis for Qualified Opinion paragraph, the separate financial statements present fairly, in
all material respects, the unconsolidated financial position of the Parent Company as at
December 31, 2014 and 2013, and its unconsolidated financial performance and its
unconsolidated cash flows for the years then ended in accordance with Philippine Financial
Reporting Standards.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 11 to the financial statements which
discusses the Executive Orders (EOs) issued by the President of the Republic of the Philippines
regarding the inventory, reconveyance, utilization and privatization of coco levy assets that
reference the decision rendered by the Supreme Court involving the ownership of certain
sequestered shares in UCPB, and the ownership over the Coconut Industry Investment Fund
(CIIF) Oil Mills Companies, the Fourteen (14) CIIF Holding Companies and the proceeds of the
redeemed shares of stock in San Miguel Corporation (SMC) held by the 14 CIIF Holding
Companies, together with all dividends declared, paid and issued thereon as well as any
increments thereto arising from, but not limited to, exercise of pre-emptive rights, is owned by
the Republic of the Philippines for the benefit of the coconut farmers, thus making it a part of the
coco levy assets. Since the manner by which the reconveyance, utilization and privatization of
the coco levy assets to be undertaken has not been defined by the implementing authorities, the
Board of Directors and management will be assessing the impact of the EOs and the Supreme
Court Decision on the Parent Company moving forward and believe that, as at December 31,
2014, it is reasonable to maintain the status quo and continue with its normal business operations.
Report on the Supplementary Information Required Under Revenue Regulations
No. 15-2010 of the Bureau of Internal Revenue
Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information in Note 40 to the financial
statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a
required part of the basic financial statements. Such supplementary information is the
responsibility of the management. The information has been subjected to the auditing procedures
applied in our audit of the basic financial statements. In our opinion, the information is fairly
stated, in all material respects in relation to the basic financial statements taken as a whole.
April 29, 2015

Makati City, Metro Manila
ABCD
R.G. Manabat & Co.

6787 Ayala Avenue
Telephone
Fax
Internet
E-Mail
+63 (2) 885 7000

+63 (2) 894 1985
www.kpmg.com.ph
ph-inquiry@kpmg.com

Cocolife Building, 6774 Ayala Avenue
Makati City
Report on the Separate Financial Statements
Assurance Corporation (the Parent Company), which comprise the separate statements of
financial position as at December 31, 2014 and 2013, and the separate statements of
comprehensive income, separate statements of changes in equity and separate statements of cash
flows for the years then ended, and notes, comprising a summary of significant accounting
policies and other explanatory information.
Managements Responsibility for the Separate Financial Statements
Management is responsible for the preparation and fair presentation of these separate financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal
control as management determines is necessary to enable the preparation of separate financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these separate financial statements based on our
audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the separate financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the separate financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the separate financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider
internal control relevant to the entitys preparation and fair presentation of the separate financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the separate financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.
member
i
a

ABCD
Basis for Qualified Opinion

The Parent Company carries its investments in United Coconut Planters Bank (UCPB) shares as
available-for-sale (AFS) financial assets at cost as disclosed in Note 11 of the notes to financial
statements. As required under Philippine Financial Reporting Standards, such AFS financial
assets should have been carried at cost less impairment losses. Had the Parent Company
recognized such impairment losses, the carrying amounts of the AFS financial assets and retained
earnings as of December 31, 2014 and 2013 should have been reduced by P552 million.
Qualified Opinion
In our opinion, except for the possible effects on the financial statements of the matter described
in the Basis for Qualified Opinion paragraph, the separate financial statements present fairly, in
all material respects, the unconsolidated financial position of the Parent Company as at
December 31, 2014 and 2013, and its unconsolidated financial performance and its
unconsolidated cash flows for the years then ended in accordance with Philippine Financial
Reporting Standards.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 11 to the financial statements which
discusses the Executive Orders (EOs) issued by the President of the Republic of the Philippines
regarding the inventory, reconveyance, utilization and privatization of coco levy assets that
reference the decision rendered by the Supreme Court involving the ownership of certain
sequestered shares in UCPB, and the ownership over the Coconut Industry Investment Fund
(CIIF) Oil Mills Companies, the Fourteen (14) CIIF Holding Companies and the proceeds of the
redeemed shares of stock in San Miguel Corporation (SMC) held by the 14 CIIF Holding
Companies, together with all dividends declared, paid and issued thereon as well as any
increments thereto arising from, but not limited to, exercise of pre-emptive rights, is owned by
the Republic of the Philippines for the benefit of the coconut farmers, thus making it a part of the
coco levy assets. Since the manner by which the reconveyance, utilization and privatization of
the coco levy assets to be undertaken has not been defined by the implementing authorities, the
Board of Directors and management will be assessing the impact of the EOs and the Supreme
Court Decision on the Parent Company moving forward and believe that, as at December 31,
2014, it is reasonable to maintain the status quo and continue with its normal business operations.
ABCD
Report on the Supplementary Information Required Under Revenue Regulations

No. 15-2010 of the Bureau of Internal Revenue
Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information in Note 40 to the financial
statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a
required part of the basic financial statements. Such supplementary information is the
responsibility of the management. The information has been subjected to the auditing procedures
applied in our audit of the basic financial statements. In our opinion, the information is fairly
stated, in all material respects in relation to the basic financial statements taken as a whole.
R.G. MANABAT & CO.
DENNIS I. ILAN
Partner
CPA License No. 089564
IC Accreditation No. SP-2014/023-R, Group A, valid until August 26, 2017
SEC Accreditation No. 1182-A, Group A, valid until April 30, 2015
Tax Identification No. 161-313-405
BIR Accreditation No. 08-001987-28-2014
Issued September 26, 2014; valid until September 25, 2017
PTR No. 4748109MC
Issued January 5, 2015 at Makati City
April 29, 2015

ABCD
R.G. Manabat & Co.

6787 Ayala Avenue
Telephone
Fax
Internet
E-Mail
+63 (2) 885 7000

+63 (2) 894 1985
www.kpmg.com.ph
ph-inquiry@kpmg.com

TO ACCOMPANY FINANCIAL STATEMENTS FOR FILING WITH THE
BUREAU OF INTERNAL REVENUE

Makati City
Assurance Corporation, as at and for the year ended December 31, 2014, on which we have
rendered our report dated April 29, 2015.
In compliance with Revenue Regulations V-20, we are stating that no partner of our Firm is
related by consanguinity or affinity to the president, manager or principal stockholder of the
Company.
R.G. MANABAT & CO.
DENNIS I. ILAN
Partner
PTR No. 4748109MC
April 29, 2015

member
i
a

ABCD
R.G. Manabat & Co.

6787 Ayala Avenue
Telephone
Fax
Internet
E-Mail
+63 (2) 885 7000

+63 (2) 894 1985
www.kpmg.com.ph
ph-inquiry@kpmg.com

TO ACCOMPANY FINANCIAL STATEMENTS FOR FILING WITH THE
SECURITIES AND EXCHANGE COMMISSION

Makati City
Assurance Corporation, as at and for the year ended December 31, 2014, on which we have
In compliance with Securities Regulation Code Rule 68, As Amended, we are stating that the said
Company has nine (9) stockholders owning one hundred (100) or more shares each.
R.G. MANABAT & CO.
DENNIS I. ILAN
Partner
PTR No. 4748109MC
April 29, 2015

member
i
a

ABCD
R.G. Manabat & Co.

6787 Ayala Avenue
Telephone
Fax
Internet
E-Mail
+63 (2) 885 7000

+63 (2) 894 1985
www.kpmg.com.ph
ph-inquiry@kpmg.com

ON SUPPLEMENTARY INFORMATION

Makati City
Assurance Corporation as at and for the year ended December 31, 2014, on which we have
Our audit was made for the purpose of forming an opinion on the basic financial statements of the
Parent Company taken as a whole. The supplementary information included in the following
accompanying additional components is the responsibility of the management:
Reconciliation of Retained Earnings Available for Dividend Declaration

Schedule of Philippine Financial Reporting Standards
These supplementary information are presented for purposes of complying with the Securities
Regulation Code Rule 68, As Amended, and are not a required part of the basic financial
statements. Such information have been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
R.G. MANABAT & CO.
DENNIS I. ILAN
Partner
PTR No. 4748109MC
April 29, 2015

member
i
a

UNITED COCONUT PLANTERS LIFE ASSURANCE CORPORATION

SEPARATE STATEMENTS OF FINANCIAL POSITION
December 31
ASSETS
Cash and cash equivalents
Insurance receivables - net
Financial assets at fair value through profit or loss (FVPL)
Available-for-sale (AFS) financial assets
Loans and receivables - net
Accrued income - net
Reinsurance assets
Investments in subsidiaries and associate
Real estate inventories
Investment properties
Property and equipment - net
Intangible assets - net
Other assets
LIABILITIES AND EQUITY

LIABILITIES
Insurance contract liabilities
Reserve for policyholders dividends
Premium deposit funds
Insurance payables
Accounts payable and accrued expenses
Deferred tax liabilities - net
Net pension liability
Other liabilities
EQUITY
Capital stock
Contributed surplus
Reserve for fluctuation on available-for-sale financial
assets
Reserve for net pension liability
Retained earnings
See Notes to the Separate Financial Statements.
Note
2014
2013
8
9
10
11
12
13
14
15
16
17
18
19
20
P1,482,796,582
419,153,554
1,144,533,764
9,050,899,343
7,682,506,264
61,789,064
44,740,721
1,128,915,018
31,818,136
583,983,965
132,702,093
14,067,581
189,697,497
P1,799,306,327
203,997,141
755,326,450
8,342,194,838
6,635,832,631
62,204,505
28,698,683
1,128,915,018
34,561,536
496,578,393
136,897,192
11,692,106
103,816,743
P21,967,603,582
P19,740,021,563
P10,367,802,789
197,631,126
692,652,228
179,479,629
1,368,411,574
533,130,508
199,790,290
34,108,756
P9,065,494,491
188,309,755
696,017,613
29,548,393
1,196,433,521
574,088,381
59,002,114
32,708,264
13,573,006,900
11,841,602,532
26
550,000,000
10,000,000
550,000,000
10,000,000
11
5,379,901,156
(129,662,069)
2,584,357,595
5,307,349,442
(26,912,347)
2,057,981,936
8,394,596,682
7,898,419,031
P21,967,603,582
P19,740,021,563
21
22
23
24
25
33
32
25
26

SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
Years Ended December 31
NET PREMIUMS
Gross premiums on insurance contracts
Reinsurance premiums ceded
OTHER REVENUE
Investments income
Service fees
Other income
NET BENEFITS AND CLAIMS
Gross benefits and claims
Reinsurers share on benefits and claims
Gross change in insurance contract liabilities
Reinsurers share on gross change in insurance
contract liabilities
OPERATING AND ADMINISTRATIVE
EXPENSES
General and administrative expenses
Policyholders dividends
Commissions
Investment expenses
Insurance taxes
Interest expenses
Increase (decrease) in loading and cost of collection
Foreign exchange loss (gain) - net
INCOME BEFORE INCOME TAX
INCOME TAX
Current
Final
Note
27
28
29
28
31
28
TOTAL COMPREHENSIVE INCOME
P4,325,822,330
(525,941,470)
3,799,880,860
P3,613,870,136
(40,602,862)
3,573,267,274
1,227,003,109
190,354,483
98,954,133
1,516,311,725
1,105,994,396
84,202,855
118,868,639
1,309,065,890
1,903,331,231
(17,071,367)
593,499,691
1,898,678,528
(26,539,374)
495,570,915
(26,452,735)
2,453,306,820
(262,402)
2,367,447,667
915,294,806
429,327,147
525,112,951
337,425,453
76,433,282
2,085,402
33,688,798
(4,046,926)
2,315,320,913
769,953,075
501,622,032
440,676,695
254,005,779
62,816,458
3,121,636
(3,918,558)
5,617,646
2,033,894,763
547,564,852
480,990,734
10,506,407
10,682,786
21,189,193
5,928,813
8,978,734
14,907,547
P526,375,659
P466,083,187
(P146,785,317)
44,035,595
(102,749,722)
P135,094,121
(40,528,236)
94,565,885
75,629,436
(3,077,722)
72,551,714
(306,312,291)
5,064,602
(301,247,689)
(30,198,008)
(206,681,804)
33
32
Item that may be reclassified to profit or loss

Fair value adjustments on available-for-sale financial assets 11
Income tax effect
TOTAL OTHER COMPREHENSIVE INCOME Net of tax
2013
30
NET INCOME
OTHER COMRPEHENSIVE INCOME
Item that will never be reclassified subsequently to
profit or loss
Remeasurement of net pension liability
Income tax effect
2014
P496,177,651
P259,401,383

SEPARATE STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
Capital
Stock
(see Note 26)
Balance at January 1, 2014
Total Comprehensive Income
Net income for the year
Other comprehensive income
Item that will never be reclassified
subsequently to profit or loss
P550,000,000
Contributed
Surplus
Reserve for
Fluctuation on
Available-forSale Financial
Assets
(see Note 11)
P10,000,000
P5,307,349,442
-
Reserve for Net

Pension Liability
(P26,912,347)
-
Retained
Earnings
(see Note 26)
Total
P2,057,981,936
P7,898,419,031
526,375,659
526,375,659
72,551,714
(102,749,722)
-
72,551,714
(102,749,722)
526,375,659
496,177,651
72,551,714
(102,749,722)
Balance at December 31, 2014
P550,000,000
P10,000,000
P5,379,901,156
(P129,662,069)
P2,584,357,595
P8,394,596,682
Balance at January 1, 2013
P550,000,000
P10,000,000
P5,608,597,131
(P121,478,232)
P1,591,898,749
P7,639,017,648
466,083,187
466,083,187
Total Comprehensive Income

Net income for the year
Other comprehensive income
Item that will never be reclassified
subsequently to profit or loss
Balance at December 31, 2013
See Notes to the Separate Financial Statements
(301,247,689)
94,565,885
-
(301,247,689)
94,565,885
P550,000,000
P10,000,000
P5,307,349,442
(P26,912,347)
(301,247,689)
94,565,885
466,083,187
259,401,383
P2,057,981,936
P7,898,419,031

SEPARATE STATEMENTS OF CASH FLOWS

Note
CASH FLOWS FROM OPERATING
ACTIVITIES
Income before income tax
Adjustments for:
Changes in insurance contact liabilities
Depreciation and amortization
Provision for impairment losses
Retirement benefit expense
Gain on sale of financial assets at FVPL
Gain on sale of AFS financial assets
Loss (gain) on sale of investment properties
Loss on sale of real estate inventories
Gain on sale of loans and receivables
Interest income
Dividend income
Unrealized foreign exchange gain - net
Rental income
Unrealized fair value loss (gain) - net
Gain on sale of property and equipment
Operating income before working capital changes
Decrease (increase) in:
Insurance receivables
Loans and receivables
Accrued income
Reinsurance assets
Real estate inventories
Other assets
Increase (decrease) in:
Reserve for policyholders dividends
Insurance payables
Other liabilities
Net cash flows provided by (used in) operations
Income tax paid
31
31
32
28
28
28
28
28
28
16
22
Net cash flows provided by (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Additional capital contribution to subsidiaries
Interest received
Dividend received
Rental income received
Contributions to retirement fund
Acquisitions of:
Financial assets at FVPL
AFS financial assets
Property and equipment
Computer software
Forward
10
11
17
18
19
2014
2013
P547,564,852
P480,990,734
1,302,308,298
32,132,175
55,122,776
34,153,645
(785,662)
(130,151,547)
1,424,423
6,875,000
(1,630,000)
(928,821,105)
(84,606,304)
(8,468,069)
(6,514,309)
(73,964,845)
(673,916)
743,965,412
1,564,917,614
28,771,406
46,228,017
48,449,088
(548,331)
(244,949,510)
(12,075,644)
2,381,821
(68,919,561)
(765,954,379)
(73,648,643)
(28,693,640)
(6,742,034)
66,843,706
(535,700)
1,036,514,944
(215,156,413)
(1,090,166,409)
830,882
(16,042,038)
(21,924,457)
(85,880,754)
15,938,603
(995,514,064)
8,149,324
(8,432,662)
40,774,679
(28,962,438)
9,321,371
(3,365,385)
149,931,236
175,055,775
1,400,492
(352,030,288)
(21,189,193)
6,887,894
(53,012,459)
(6,220,358)
51,539,132
(38,645,803)
29,016,792
(14,907,547)
(373,219,481)
14,109,245
928,777,860
84,593,054
8,109,123
(40,150,786)
(100,000,000)
765,954,380
66,943,421
6,701,121
(38,910,871)
(335,638,453)
(1,738,418,230)
(107,709,846)
(27,095,550)
(5,189,000)
(118,923,862)
(2,182,976,319)
(103,834,689)
(40,562,788)
(6,190,498)

Note
Proceeds from disposal of:
Property and equipment
Real Estate inventories
2014
P22,001,686
1,238,111,255
16,884,025
4,641,741
(10,000,000)
17,792,857
Net cash flows provided by investing activities

NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS
2013
P27,169,355
2,254,447,932
119,168,175
5,230,413
452,172,837
56,709,736
1,106,388,607
(316,509,745)
1,120,497,852
CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR
1,799,306,327
678,808,475
CASH AND CASH EQUIVALENTS AT

END OF YEAR
P1,482,796,582
P1,799,306,327

NOTES TO THE SEPARATE FINANCIAL STATEMENTS
1. Reporting Entity
The United Coconut Planters Life Assurance Corporation (the Parent Company) was
incorporated on March 20, 1978 and is domiciled in the Republic of the Philippines. The
Parent Company was formed to undertake life insurance business, including accident and
health insurance; to write insurance contracts providing for all risks, hazards, guarantees
and contingencies to which life, accident or health insurance is applicable; to grant
endowment and annuities; to issue insurance policies providing for participation or
nonparticipation of profits; to reinsure all or part of the risks underwritten by the Parent
Company; to undertake all kinds of reinsurance to the extent allowed by the law; and to
act as agent or general agent of another insurance company.
The Parent Company has a Certificate of Authority No. 2013/86R issued by the
Insurance Commission (IC) to transact in life insurance business until
December 31, 2015.
The registered office address of the Parent Company is at Cocolife Building, 6774 Ayala
Avenue, Makati City.
2. Basis of Preparation
Statement of Compliance
The separate financial statements have been prepared in compliance with Philippine
Financial Reporting Standards (PFRSs). PFRSs are based on International Financial
Reporting Standards (IFRSs) issued by the International Accounting Standards Board
(IASB). PFRSs which are issued by the Philippine Financial Reporting Standards
Council (FRSC), consist of PFRSs, Philippine Accounting Standards (PASs), and
Philippine Interpretations.
In accordance with PFRS 10, Consolidated Financial Statements, the Parent Company
also prepares and issues consolidated financial statements for the same period in which it
consolidates its investments in subsidiaries. Such consolidated financial statements
provide information about the economic activities of the Parent Company and its
subsidiaries.
The separate financial statements should be read together with the Parent Companys
consolidated financial statements as at and for the years ended December 31, 2014 and
2013 in order to obtain full information on the consolidated financial position and
financial performance of the Parent Company and its subsidiaries.
The separate financial statements of the Parent Company are intended for managements
use and for filing with the Bureau of Internal Revenue (BIR). These financial statements
account for the Parent Companys investments in subsidiaries at cost (see Note 15) in
accordance with the provisions of PAS 27, Separate Financial Statements.
The accompanying separate financial statements of the Parent Company were authorized
for issue by the Board of Directors (BOD) on April 29, 2015.
Basis of Preparation
The separate financial statements have been prepared on the historical cost basis except
for the following accounts which are measured on each reporting date as follows:
Items
Financial assets at fair value
through profit or loss (FVPL)
Available-for-sale (AFS) financial
assets
Measurement bases
Fair value through profit or loss
Fair value through other comprehensive income
Present value of the defined benefit obligation less
the fair value of the plan assets
Functional and Presentation Currency

The separate financial statements are presented in Philippine peso, which is the Parent
Companys functional currency. All financial information presented in Philippine peso
has been rounded off to the nearest peso, except as otherwise indicated.
Use of Judgments and Estimates
The preparation of the separate financial statements in accordance with PFRSs requires
management to make judgments, estimates and assumptions that affect the application of
policies and reported amounts of assets, liabilities, income, expenses and disclosures of
contingent assets and liabilities, if any. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of making the judgments
about the carrying amounts of assets, liabilities, income and expenses that are not readily
apparent from other sources. Actual results may however differ from estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized prospectively.
Information about significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts
recognized in the separate financial statements are described in Note 4 to the separate
financial statements.
3. Summary of Significant Accounting Policies

The accounting policies set out below have been applied consistently to all years
presented in these separate financial statements. Certain comparative amounts in the
separate statements of comprehensive income have been reclassified as a result of a
change in the classification of certain accounts in the current year (see Note 39).
-2-
Adoption of New or Revised Standards, Amendments to Standards and Interpretations

The Parent Company has adopted the following amendments to standards and
interpretations starting January 1, 2014. The adoption of these amendments to standards
and interpretations did not have any significant impact on the Parent Companys separate
Offsetting Financial Assets and Financial Liabilities (Amendments to Financial

Instruments: Disclosure and Presentation - PAS 32). These amendments clarify that:
An entity currently has a legally enforceable right to set-off if that right is:
- not contingent on a future event; and
- enforceable both in the normal course of business and in the event of default,
insolvency or bankruptcy of the entity and all counterparties; and
Gross settlement is equivalent to net settlement if and only if the gross settlement
mechanism has features that:
- eliminate or result in insignificant credit and liquidity risk; and
- process receivables and payables in a single settlement process or cycle.
Recoverable Amount Disclosures for Non-financial Assets (Amendments to

Impairment of Assets - PAS 36). These narrow-scope amendments to PAS 36 address
the disclosure of information about the recoverable amount of impaired assets if that
amount is based on fair value less costs of disposal. The amendments clarified that
the scope of those disclosures is limited to the recoverable amount of impaired assets
that is based on fair value less costs of disposal.
Measurement of short-term receivables and payables (Amendment to Fair Value

Measurement - PFRS 13). Amendment to PFRS 13 is part of the Annual
Improvements to PFRSs 2010-2012 Cycle. The amendment clarifies that, in issuing
PFRS 13 and making consequential amendments to Financial Instruments:
Recognition and Measurement (PAS 39) and Financial Instruments (PFRS 9), the
intention is not to prevent entities from measuring short-term receivables and
payables that have no stated interest rate at their invoiced amounts without
discounting, if the effect of not discounting is immaterial. The amendment to
PFRS 13 is effective immediately.
New or Revised Standards, Amendments to Standards and Interpretations Not Yet

Adopted
A number of new standards and amendments to standards are effective for annual periods
beginning after January 1, 2014. However, the Parent Company have not applied the
following new or amended standards in preparing these separate financial statements.
The Parent Company is assessing the potential impact on its financial statements
resulting from the application of the new standards.
-3-
Effective July 1, 2014
Annual improvements to PFRSs 2010-2012 and 2011-2013 Cycles - Amendments

were made to a total of nine standards, with changes made to the standards on
business combinations and fair value measurement in both cycles. Most amendments
will apply prospectively for annual periods beginning on or after July 1, 2014. Earlier
application is permitted, in which case the related consequential amendments to other
PFRSs would also apply. Special transition requirements have been set for
amendments to the following standards: Share-based Payment (PFRS 2), Property,
Plant and Equipment (PAS 16), Intangible Assets (PAS 38) and Investment Property
(PAS 40). Below is the amendment to PFRSs, which may be applicable to the Parent
Company:
Definition of related party (Amendment to PAS 24).The definition of a related

party is extended to include a management entity that provides key management
personnel (KMP) services to the reporting entity, either directly or through a
group entity. For related party transactions that arise when KMP services are
provided to a reporting entity, the reporting entity is required to separately
disclose the amounts that it has recognized as an expense for those services that
are provided by a management entity; however, it is not required to look
through management entity and disclose compensation paid by management
entity to the individuals providing the KMP services. The reporting entity will
also need to disclose other transactions with management entity under the
existing disclosure requirements of PAS 24 - e.g. loans.
Effective January 1, 2016
Clarification of Acceptable Methods of Depreciation and Amortization (Amendments

to PAS 16 and PAS 38). The amendments to PAS 38, Intangible Assets introduce a
rebuttable presumption that the use of revenue-based amortization methods for
intangible assets is inappropriate. This presumption can be overcome only when
revenue and the consumption of the economic benefits of the intangible asset are
highly correlated, or when the intangible asset is expressed as a measure of
revenue.
The amendments to PAS 16, Property, Plant and Equipment explicitly state that
revenue-based methods of depreciation cannot be used for property, plant and
equipment. This is because such methods reflect factors other than the consumption
of economic benefits embodied in the asset - e.g. changes in sales volumes and
prices.
The amendments are effective for annual periods beginning on or after January 1,
2016, and are to be applied prospectively. Early application is permitted.
Equity Method in Separate Financial Statements (Amendments to PAS 27). The

amendments allow the use of the equity method in separate financial statements, and
apply to the accounting not only for associates and joint ventures, but also for
subsidiaries.
The amendments apply retrospectively for annual periods beginning on or after
January 1, 2016. Early adoption is permitted.
-4-
Effective January 1, 2018
PFRS 9, Financial Instruments (2014). PFRS 9 (2014) replaces PAS 39, Financial
Instruments: Recognition and Measurement and supersedes the previously published
versions of PFRS 9 that introduced new classifications and measurement
requirements (in 2009 and 2010) and a new hedge accounting model (in 2013).
PFRS 9 includes revised guidance on the classification and measurement of financial
assets, including a new expected credit loss model for calculating impairment,
guidance on own credit risk on financial liabilities measured at fair value and
supplements the new general hedge accounting requirements published in 2013.
PFRS 9 incorporates new hedge accounting requirements that represent a major
overhaul of hedge accounting and introduces significant improvements by aligning
the accounting more closely with risk management.
The new standard is to be applied retrospectively for annual periods beginning on or
after January 1, 2018 with early adoption permitted.
Insurance Contracts
Production Classification
Insurance contracts are defined as those contracts under which the Parent Company
(the insurer) accepts significant insurance risk from another party (the policyholders) by
agreeing to compensate the policyholders if a specified uncertain future event
(the insured event) adversely affects the policyholder. As a general guideline, the Parent
Company defines significant insurance risk as the possibility of having to pay benefits on
the occurrence of an insured event that is significantly greater than the benefits payable if
the insured event did not occur. Insurance contracts can also transfer financial risk.
Investment contracts are those contracts that transfer significant financial risk and no
significant insurance risk. Financial risk is the risk of a possible future change in one or
more of a specified interest rate, security price, commodity price, foreign exchange rate,
index of price or rates, credit rating or credit index or other variables, provided in the
case of non-financial variable that the variable is not specific to a party to the contract.
Once a contract has been classified as an insurance contract, it remains an insurance
contract for the remainder of its lifetime, even if the insurance risk reduces significantly
during the period, unless all rights and obligations are extinguished or expired.
Investment contracts can, however, be reclassified as insurance contracts after inception
if the insurance risk becomes significant.
Insurance and investment contracts are further classified as being with and without
Discretionary Participation Feature (DPF). DPF is a contractual right to receive, as a
supplement to guaranteed benefits, additional benefits that are:
Likely to be a significant portion of the total contractual benefits;

The amount or timing of which is contractually at the discretion of the issuer; and
Contractually based on the following:
Performance of a specified pool of contracts or a specified type of contract; or

Realized or an unrealized investment returns on a specified pool of assets held by
the issuer; or
The profit or loss of the Parent Company, fund or other entity that issues the
contract.
-5-
The additional benefits include policy dividends that are declared annually, the amounts
of which are computed using actuarial methods and assumptions, and are included under
Policyholders dividends account in profit or loss with the corresponding liability
recognized under the Reserve for policyholders dividends account in the separate
statements of financial position.
For financial options and guarantees which are not closely related to the host insurance
contract, bifurcation is required to measure these embedded financial derivatives
separately at FVPL. Bifurcation is not required if the embedded derivative itself is an
insurance contract or when the host insurance contract itself is measured at FVPL.
As such, the Parent Company does not separately measure options to surrender insurance
contracts for a fixed amount (or an amount based on a fixed amount and an interest rate).
Likewise, the embedded derivative in unit-linked insurance contracts linking the
payments on the contract to units of an internal investment fund meets the definition of
an insurance contract and is not, therefore, accounted for separately from the host
insurance contract.
Reinsurance Contracts Held
Contracts entered into by the Parent Company with reinsurers under which the Parent
Company is compensated for losses on one or more insurance contracts are classified as
reinsurance contracts held.
The benefits to which the Parent Company is entitled under its insurance contracts held
are recognized as reinsurance assets. These assets consist of short-term balances due
from reinsurers, as well as longer term receivables that are dependent on the expected
claims and benefits arising under the related reinsured insurance contracts. Amounts
recoverable from or due to reinsurers are measured consistently with the amounts
associated with the reinsured insurance contracts and in accordance with the terms of
each reinsurance contracts. Liabilities arising from these contracts are primarily
premiums payable and are recognized as an expense when due. These liabilities are
presented under Insurance payables account in the separate statements of financial
position.
An impairment review is performed at each reporting date or more frequently when an
indication of impairment arises during the reporting year. Impairment occurs when
objective evidence as a result of an event that occurred after initial recognition that the
Parent Company may not recover outstanding amounts under the terms of the contract
and when the impact on the amounts that the Parent Company will receive from the
reinsurer can be measured reliably. Any impairment loss determined is recognized in
profit or loss.
Ceded reinsurance arrangements do not relieve the Parent Company from their
obligations to the policyholders.
The Parent Company also assumes reinsurance risk in the normal course of its business.
Premiums and claims on assumed reinsurance are recognized as income and expense in
the same manner as they would be if the reinsurance were considered direct business,
taking into account the product classification of the reinsured business. The liabilities
arising from these contracts are primarily claims and benefits payables and estimated in a
manner consistent with the associated reinsurance contracts. These liabilities are
presented under Insurance payables account in the separate statements of financial
position.
Premiums and claims are presented on a gross basis for both ceded and assumed
reinsurance.
-6-
Assets or liabilities from these contracts are derecognized when the contractual right is
extinguished or expired or when the contract is transferred to another party.
Insurance Contact Liabilities
Legal Policy Reserves. Life insurance contract liabilities are recognized when the
contracts are entered into and the premiums are recognized. These are determined by the
Parent Companys actuary in accordance with the requirements of the Insurance Code
(the Code) and are calculated on the basis of a prudent prospective actuarial valuation
method where the assumptions used depend in the operation of each life insurance
product. These reserves represent the amounts which, together with future premiums and
investment income, are required to discharge the obligations of the insurance contracts
and to pay expenses related to the administration of those contracts. These reserves are
determined using generally accepted actuarial practices and have been approved by the
Insurance Commission (IC) at the product approval stage.
Insurance Contracts with Fixed and Guaranteed Terms. A liability for contractual
benefit expected to be incurred in the future is recorded when premiums are recognized.
The liability is determined as the expected discounted value of the benefit payment less
the expected discounted value of the theoretical premiums that would be required to meet
the benefits based on the valuation assumptions used. The liability is based on mortality,
morbidity and investments income assumptions that are established at the time the
contract is issued.
The Parent Company has different assumptions for different products. However,
liabilities for contractual benefits are computed to comply with statutory requirements
using the standard table of mortality with interest to be determined by IC. Reserves are
computed per thousand of sum insured and depend on the issue age and policy duration.
Unit-linked Insurance Contracts. A unit-linked insurance contract is an insurance
contract linking payments to units of an internal investment fund set up by the Parent
Company with the consideration received from the policyholders. The investment funds
supporting the linked policies are maintained in segregated accounts in conformity with
Philippine laws and regulations. The liability for such contracts is the higher amount
between the policyholders investment fund balance and the minimum guaranteed
amount stated in the policy contract.
Revenue from unit-linked insurance contracts consists of premiums received and policy
administration fees.
The reserve for unit-linked liabilities are increased by additional deposits and changes in
unit prices and decreased by policy administration fees, fund charges, mortality and
surrender charges and any withdrawals. As at the reporting date, this reserve is computed
on the basis of the number of units allocated to the policyholders multiplied by the unit
price of the underlying investment funds.
Liability Adequacy Test. Liability adequacy tests are performed annually to ensure the
adequacy of the insurance contract liabilities. In performing these tests, current best
estimates of future contractual cash flows, claims handling and policy administration
expenses are used. Any deficiency is immediately charged against the Parent Companys
profit or loss initially by establishing a provision for losses arising from the liability
adequacy tests.
-7-
Reserve for Policyholders Dividends

DPF is a contractual right that gives policyholders the right to receive supplementary
discretionary returns through participation in the surplus arising from participating
business. These returns are subject to the discretion of the Parent Company and are
within the constraints of the terms and conditions of the contract.
For group commercial and farmers lines, the Parent Company sets up the policyholders
dividends due and accrued for all groups which have participating feature based on the
agreed experience refund formula and an assessment of the individual groups
prospective cash flows and operating results. For individual policyholders, all dividends
due and accrued are carried for participating policies using an estimated dividend scale
expected to be declared based on the Parent Companys profit emergence for the
individual line.
Insurance Receivables and Payables
Receivables and payables are recognized when due. Insurance receivables and payables
include amounts due from agents and policyholders and amounts due to reinsurers. If
there is objective evidence that the insurance receivable is impaired, the Parent Company
reduces the carrying amount of the insurance receivable and recognizes the impairment
loss in profit or loss.
Premium Deposit Fund
This represents fund which will be used for payment of any unpaid premiums under the
policy. The fund earns interest of 1.50% and 3.00% per annum for dollar and peso
denominated policy, respectively, which is credited to the fund. The accumulated fund
shall not exceed the total future premium payments under the policy.
Financial Instruments
Classification. The Parent Company classifies its financial assets in the following
categories: financial assets at fair value through profit or loss (FVPL), available-for-sale
(AFS) financial assets, held-to-maturity (HTM) investments and loans and receivables.
The Parent Company classifies its financial liabilities either as financial liabilities at
FVPL or other financial liabilities.
The classification depends on the purpose for which the financial assets were acquired or
incurred. Management determines the classification of its financial instruments at initial
recognition and, where allowed and appropriate, re-evaluates such designation at every
reporting date.
Financial Assets or Financial Liabilities at FVPL. This category consists of financial
instruments that are held for trading or designated by management on initial recognition.
Financial assets and financial liabilities at FVPL are recorded in the separate statements
of financial position at fair value, with changes in fair value recorded in profit or loss.
Financial assets or financial liabilities are allowed to be designated by management on
initial recognition in this category when the following criteria are met:
The designation eliminates or significantly reduces the inconsistent treatment that

would otherwise arise from measuring the assets or liabilities or recognizing gains or
losses on them on a different basis; or
The assets and liabilities are part of a group of financial assets, financial liabilities or
both which are managed and their performance evaluated on a fair value basis, in
accordance with a documented risk management or investment strategy; or
-8-
The financial instrument contains an embedded derivative, unless the embedded

derivative does not significantly modify the cash flows or, it is clear, with little or no
analysis, that it would not be bifurcated.
Held-for-trading securities are not reclassified subsequent to their initial recognition,

unless they are no longer held for the purpose of being sold or repurchased in the near
term and the following conditions are met:
If the financial asset would have met the definition of loans and receivables (if the
financial asset had not been required to be classified as held-for-trading at initial
recognition), then it may be reclassified if the Parent Company has the intention and
the ability to hold the financial asset in the foreseeable future or until maturity; and
The financial asset may be reclassified out of the held-for-trading securities category
only under rare circumstances.
As at December 31, 2014 and 2013, the Parent Company does not have any financial
asset or financial liabilities designated by management as financial assets or financial
liabilities at FVPL. However, the Parent Companys financial assets classified as heldfor-trading investments amounted to P1.14 billion and P0.76 billion as at December 31,
2014 and 2013, respectively (see Note 10).
As at December 31, 2014 and 2013, the Parent Companys held-for-trading securities
include government debt and equity securities.
HTM Investments. HTM investments are quoted non-derivative financial assets with
fixed or determinable payments and fixed maturities for which management has the
positive intention and ability to hold to maturity. Where the Parent Company sells or
reclassifies other than an insignificant amount of HTM investments, the entire category
would be tainted and reclassified at fair value as AFS financial assets. After initial
measurement, these investments are subsequently measured at amortized cost using the
effective interest method, less any allowance for impairment. Amortized cost is
calculated by taking into account any discount or premium on acquisition and fees that
are an integral part of the effective interest rate (EIR). The amortization, if any, is
included as part of interest income in profit or loss.
As at December 31, 2014 and 2013, the Parent Company has no financial assets
classified as HTM investments.
AFS Financial Assets. AFS financial assets are financial assets which are designated as
such, or do not qualify to be classified or have not been classified under any other
financial asset category. They are purchased and held indefinitely and may be sold in
response to liquidity requirements or changes in market conditions.
As at December 31, 2014 and 2013, the Parent Companys AFS financial assets
amounted to P9.05 million and P8.34 million, respectively, and composed of equity and
government debt securities (see Note 11).
Loans and Receivables. Loans and receivables are non-derivative financial assets with
fixed or determinable payments and fixed maturities that are not quoted in an active
market. These are not entered into with the intention of immediate or short-term resale
and are not held for trading.
-9-
As at December 31, 2014 and 2013, the Parent Companys cash and cash equivalents,
insurance receivables, loans and receivables, accrued income, reinsurance assets and
other assets pertaining to lease and leasehold deposits and refundable deposits are
classified under this category.
Cash and Cash Equivalents. Cash includes cash on hand and in banks. Cash equivalents
are short-term, highly liquid investments that are readily convertible to known amounts
of cash with original maturities of three months or less and are subject to an insignificant
risk of change in value.
Other Financial Liabilities. Issued financial instruments or their component, which are
not classified as at FVPL are classified as other financial liabilities where the substance
of the contractual arrangement results in the Parent Company having an obligation either
to deliver cash or another financial asset to the holder or lender, or to satisfy the
obligation other than by the exchange of a fixed amount of cash or another financial asset
for a fixed number of the Parent Companys own equity instruments.
This category includes the Parent Companys policy and contract claims under
Insurance contract liabilities account, reserve for policyholders dividends, premium
deposit funds excluding amounts received which will be applied to premiums due,
insurance payables and accounts payable and accrued expenses.
Recognition and Measurements
Financial instruments are recognized in the separate statements of financial position
when the Parent Company becomes a party to the contractual provisions of the
instrument. Purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace are recognized
on the trade date. Financial instruments are initially recognized at fair value plus
transaction costs for all financial assets not carried at FVPL. Financial assets carried at
FVPL are initially recognized at fair value, and transaction costs are expensed in profit or
loss. AFS financial assets and financial assets at FVPL are subsequently carried at fair
value except for investments in equity instruments that do not have a quoted price in an
active market and whose fair value cannot be reliably measured are carried at cost. Loans
and receivables are subsequently carried at amortized cost using the effective interest
method.
Gains or losses arising from changes in the fair value of financial assets at fair value
through profit or loss are presented in profit or loss in the period in which they arise.
Changes in the fair value of AFS financial assets are recognized in other comprehensive
income. When securities classified as AFS are sold or impaired, the accumulated fair
value adjustments recognized in equity are included in profit or loss.
Interest income calculated using the effective interest method and dividend income on
financial assets at FVPL and AFS financial assets are recognized in profit or loss as part
of Investment income when the Parent Companys right to receive payments is
established.
- 10 -
Determination of Fair Value

A number of the Parent Companys accounting policies require the determination of fair
values, for both financial and non-financial assets and liabilities. Determination of fair
values requires evaluating, among others, whether the asset or liability is quoted or not in
an active market. Included in the evaluation on whether an asset or liability is quoted in
an active market is the determination of the principal market or, in the absence of a
principal market, the most advantageous market, and whether the Parent Company can
enter into a transaction at the price in that market at the measurement date.
Fair values have been determined for measurement and/or disclosure purposes, when
necessary, based on the estimated amounts that would be received to sell an asset or paid
to transfer a liability in an orderly transaction in the principal (or most advantageous)
market at the measurement date under current market conditions, regardless of whether
that price is directly observable or estimated using another valuation technique. When
applicable, the Parent Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and minimizing the use of unobservable
inputs.
Impairment of Financial Assets
The Parent Company assesses at each reporting date whether a financial asset or a group
of financial assets is impaired.
A financial asset or a group of financial assets is deemed to be impaired if, and only if,
there is objective evidence of impairment as a result of one or more events that has
occurred after the initial recognition of the asset (an incurred loss event) and that loss
event (or events) has an impact on the estimated future cash flows of the financial asset
or the group of financial assets that can be reliably estimated. Evidence of impairment
may include indications that the borrower or a group of borrowers is experiencing
significant financial difficulty, default or delinquency in interest or principal payments,
the probability that they will enter bankruptcy or other financial reorganization and where
observable data indicate that there is measurable decrease in the estimated future cash
flows, such as changes in arrears or economic conditions that correlate with defaults.
Loans and Receivables. The Parent Company first assesses whether objective evidence of
impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Parent
Company determines that no objectives evidence of impairment exists for individually
assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses for
impairment. Assets that are individually assessed for impairment and for which an
impairment loss is, or continues to be, recognized are not included in a collective
assessment for impairment. For the purpose of a collective evaluation of impairment,
loans and receivables are grouped on the basis of credit risk characteristics such as type
of borrower, collateral type, credit and payment status, and term.
- 11 -
If there is objective evidence that an impairment loss has been incurred, the amount of
the loss is measured as the excess of loans carrying amount over its net realizable value,
based on the present value of the estimated future cash flows from the asset. The present
value of the estimated future cash flows is discounted at the loans original EIR. Time
value is generally not considered when the effect of discounting is not material. If a loan
has a variable interest rate, the discount rate for measuring any impairment loss is the
current EIR, adjusted for the original credit risk premium. The calculation of the present
value of the estimated future cash flows of a collateral-dependent loan reflects the cash
flows that may result from foreclosure less costs for obtaining and selling the collateral.
Any impairment loss determined is recognized in profit or loss.
The carrying amount of an impaired loan is reduced to its net realizable value through the
use of an allowance account. For an impaired loan, interest income continues to be
recognized using the rate of interest used to discount the future cash flows for the
purpose of measuring the impairment loss. If, in a subsequent period, the amount of the
allowance for impairment loss decreases because of an event occurring after the
impairment loss was recognized, the previously recognized impairment loss is reversed to
profit or loss to the extent that the resulting carrying amount of the asset does not exceed
its amortized cost had no impairment loss been recognized.
Financial assets, particularly trade receivables, are written off to the extent of the amount
determined by management to be uncollectible. Those with pending cases in court are
written-off upon managements approval.
AFS Financial Assets Carried at Fair Value. In case of equity investments classified as
AFS financial assets, impairment indicators would include a significant or prolonged
decline in the fair value of the investments below its cost. Where there is objective
evidence of impairment, the cumulative loss in equity, measured as the difference
between the acquisition cost and the current fair value, less any impairment loss
previously recognized, is recorded in profit or loss. Subsequent increase in the fair value
of an impaired AFS equity security is recognized in other comprehensive income.
In the case of AFS debt securities, impairment is assessed based on the same criteria as
financial assets carried at amortized cost. Interest continues to be accrued at the EIR on
the reduced carrying amount of the asset and is recorded as part of interest income in
profit or loss. If, in a subsequent year, the fair value of a debt instrument increases and
the increase can be objectively related to an event occurring after the impairment loss
was recognized, the impairment loss is reversed in profit or loss to the extent that the
resulting carrying amount of the asset does not exceed its carrying amount had no
impairment loss been recognized.
AFS Financial Assets Carried at Cost. If there is an objective evidence that an
impairment loss on an unquoted equity instrument that is not carried at fair value because
its fair value cannot be reliably measured, or on derivative asset that is linked to and must
be settled by delivery of such unquoted equity instrument has been incurred, the amount
of the loss is measured as the difference between the assets carrying amount and the
present value of estimated future cash flows discounted at the current market rate of
return for a similar financial asset. The carrying amount of the asset is reduced through
the use of an allowance account.
- 12 -
Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the
Parent Companys separate statements of financial position if, and only if, there is a
currently enforceable legal right to offset the recognized amounts and there is an
intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously. This is generally not the case with master netting agreements, thus, the
related assets and liabilities are presented on a gross basis in the separate statements of
financial position.
Income and expense are presented on a net basis only when permitted under PFRSs, such
as in the case of any realized gains or losses arising from the Parent Companys trading
activities.
Classification of Financial Instruments between Debt and Equity
A financial instrument is classified as debt if it has a contractual obligation to:
Deliver cash or another financial asset to another entity, or
Exchange financial assets or financial liabilities with another entity under conditions
that are potentially unfavorable to the Parent Company.
If the Parent Company does not have an unconditional right to avoid delivering cash or
another financial asset to settle its contractual obligation, the obligation meets the
definition of a financial liability.
Derecognition of Financial Assets and Liabilities
Financial Assets. A financial asset (or, where applicable a part of a financial asset or part
of a group of financial assets) is derecognized when:
The rights to receive cash flows from the asset have expired; or
The Parent Company retains the right to receive cash flows from the asset, but has
assumed an obligation to pay them in full without material delay to a third party
under a pass-through arrangement; or
The Parent Company has transferred its rights to receive cash flows from the asset
and either: (a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained the risk and rewards of the asset but has
transferred the control of the asset.
Where the Parent Company has transferred its rights to receive cash flows from an asset
or has entered into a pass-through arrangement, and has neither transferred nor retained
substantially all the risks and rewards of the asset nor transferred control of the asset, the
asset is recognized to the extent of the Parent Companys continuing involvement in the
asset. Continuing involvement that takes the form of a guarantee over the transferred
asset is measured at the lower of original carrying amount of the asset and the maximum
amount of consideration that the Parent Company could be required to repay.
Financial Liabilities. A financial liability is derecognized when the obligation under the
liability is discharged, cancelled or has expired. Where an existing financial liability is
replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability,
with the difference in the respective carrying amounts recognized in profit or loss.
- 13 -
Investments in Subsidiaries and Associate

A subsidiary is an entity over which the Parent Company has control. There is control
when the Parent Company is exposed, or has rights, to variable returns from its
involvement with the entity and has the ability to affect returns through its power over
the entity.
Following the provisions of PAS 27, on the preparation of separate financial statements,
investments in subsidiaries are accounted for at cost, less any impairment in value. The
Parent Company recognizes income from the investment in subsidiaries only to the extent
that the Parent Company receives distributions from accumulated profits of the investee
arising after the date of acquisition. Distributions received in excess of such profits are
regarded as a return of investment and are recognized as a reduction from the cost of the
investment.
An associate, on the other hand, pertains to an entity over which the Parent Company has
significant influence but not control, generally accompanying a shareholding of between
20% and 50% of the voting rights.
Cost of investments in subsidiaries and associate includes the purchase price and other
costs directly attributable to the acquisition of the investment such as professional fees
for legal services, transfer taxes and other transaction costs. This includes any excess of
the cost of the acquisition over the fair value of identifiable net assets of a subsidiary or
an associate at the date of acquisition.
Subsequent to initial recognition, investments in shares of stock of associates are
measured at cost. Dividend income on these associates is recognized when declared from
accumulated profits of the investee.
Investments in subsidiaries and associate are derecognized upon sale or disposal. Any
gain or loss arising from derecognition is recognized in profit or loss. Gain or loss is
computed as the difference between the proceeds from the disposal and its carrying
amount.
Real Estate Inventories
Real estate inventories consist of columbary units. These are carried at the lower of cost
and net realizable value (NRV). NRV is the estimated selling price in the ordinary course
of business less the estimated costs of completion and the estimated costs necessary to
make the sale. Cost includes acquisition costs of columbary units and those costs
incurred for the development and improvement of the properties.
Investment Properties
Properties held for long-term yields or for capital appreciation or for both, are classified
as investment properties. These properties are initially measured at cost, which includes
transaction costs, but excludes day-to-day servicing costs. Replacement cost is
capitalized if it is probable that future economic benefits associated with the item will
flow to the entity and the cost of the item can be reliably measured. The carrying amount
of those parts that are replaced is derecognized. Subsequently, at each reporting date,
such properties are carried at cost less accumulated depreciation and impairment in value.
Depreciation is computed using the straight-line method over its estimated useful life of
ten (10) years.
Transfers are made to investment properties when, and only when, there is a change in
use, evidenced by ending of owner occupation, commencement of an operating lease to
another party or ending of construction or development.
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Transfers are made from investment properties when, and only when, there is a change in
use, evidenced by commencement of owner occupation or commencement of
development with a view to sell.
Investment properties are derecognized when either their use change or they have been
disposed of or when the investment properties are permanently withdrawn from use and
no future benefit is expected from its disposal. Any gain or loss on the retirement or
disposal of investment properties is recognized in profit or loss in the year of retirement
or disposal.
Property and Equipment
Property and equipment are carried at cost less accumulated depreciation and
amortization and any allowance for impairment in value.
The initial cost of property and equipment comprises its purchase price, including any
directly attributable costs of bringing the asset to its working condition and location for
its intended use.
Depreciation and amortization are calculated on the straight-line basis over the estimated
useful lives of the property and equipment as follows:
Buildings and leasehold improvements

Transportation equipment
Office furniture, fixtures and equipment
Number of Years
5 - 10 or lease term,
whichever is shorter
5
5
Subsequent costs are included in the assets carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that the future economic benefits
associated with the item will flow to the Parent Company and the cost of the item can be
reliably measured. All other repairs and maintenance costs are charged against profit or
loss during the period in which these are incurred.
The property and equipments residual values, estimated useful lives and depreciation
and amortization method are reviewed periodically to ensure that the residual value,
period and method of depreciation and amortization are consistent with the expected
pattern of economic benefits from items of property and equipment.
Fully depreciated assets are retained in the accounts until they are no longer in use, at
which time, the cost and the related accumulated depreciation and amortization are
written off.
An item of property and equipment is derecognized upon disposal or when no further
future economic benefits are expected from its use or disposal. Any gain or loss arising
from derecognition of the asset (calculated as the difference between the net disposal
proceeds and the original of the asset) is included in profit or loss in the year the asset is
derecognized.
- 15 -
Intangible Asset
Intangible asset pertains to the Parent Companys computer software. Costs incurred to
acquire computer software (not an integral part of its related hardware) and bring it to its
intended use are capitalized. These costs are amortized over their estimated useful lives
ranging from three (3) to five (5) years. Cost directly associated with the development of
identifiable computer software that generate expected future benefits to the Parent
Company are recognized. All other costs of developing and maintaining computer
software are recognized as expense when incurred.
Gain or losses arising from the derecognition of the computer software are measured as
the difference between the net disposal proceeds and the carrying amount of the asset and
are recognized in profit or loss.
Impairment of Non-financial Assets
This accounting policy primarily applies to the Parent Companys real estate inventories,
investment properties, property and equipment, and intangible asset.
At each reporting date, the Parent Company assesses whether there is any indication that
its non-financial assets may be impaired. When an indicator of impairment exists, the
Parent Company estimates the recoverable amount of the impaired assets. The
recoverable amount is the higher of the fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are largely independent cash inflows (cash-generating unit). Value in use is
the present value of future cash flows expected to be derived from an asset while fair
value less costs of disposal is the amount obtainable from the sale of an asset in an arms
length transaction between knowledgeable and willing parties less cost of disposal. In
assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessment of the time
value of money and the risks specific to the asset.
Where the carrying amount of an asset exceeds its recoverable amount, the impaired asset
is written down to its recoverable amount.
An impairment loss is recognized in profit or loss in the period in which it arises.
An assessment is made at each reporting date as to whether there is any indication that
previously recognized impairment loss may no longer exist or may have decreased. If
such indication exists, the recoverable amount is estimated. A previously recognized
impairment loss is reversed only if there has been a change in the estimates used to
determine the assets recoverable amount since the last impairment loss was recognized.
If that is the case, the carrying amount of the asset is increased to its recoverable amount.
The reversal can be made only to the extent that the resulting carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation and
amortization, had no impairment loss been recognized. Such reversal is recognized in
profit or loss. After such a reversal, the depreciation and amortization is adjusted in
future years to allocate the assets revised carrying amount, less any residual value, on a
systematic basis over its remaining life.
Provisions
Provisions are recognized when the Parent Company has a present legal or constructive
obligation as a result of past event, it is more likely than not that an outflow of resources
will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are not recognized for future operating losses.
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Provisions are measured at the present value of the amount expected to be required to
settle the obligation using a pre-tax rate that reflects the current market assessment of the
time value of money and, where appropriate, the risk specific to the obligation. Where
discounting is used, the increase in the provision due to the passage of time is recognized
as interest expense.
Where the Parent Company expects some or all of a provision to be reimbursed, the
reimbursement is recognized only when the reimbursement is virtually certain. The
expense relating to any provision is presented in profit or loss net of any reimbursement.
Net Pension Liability
The Parent Companys net obligation in respect of the defined benefit plan is calculated
by estimating the amount of the future benefit that employees have earned in the current
and prior periods, discounting that amount and deducting the fair value of any plan
assets.
The calculation of defined benefit obligation is performed on a periodic basis by a
qualified actuary using the projected unit credit method. When the calculation results in
a potential asset for the Parent Company, the recognized asset is limited to the present
value of economic benefits available in the form of any future refunds from the plan or
reductions in future contributions to the plan.
Remeasurements of the net pension liability, which comprise actuarial gains and losses,
return on plan assets (excluding interest) and the effect of the asset ceiling (if any,
excluding interest), are recognized immediately in other comprehensive income. The
Parent Company determines the net interest expense (income) on the net pension liability
(asset) for the period by applying the discount rate used to measure the defined benefit
obligation at the beginning of the annual period to the net pension liability (asset), taking
into account any changes in the net defined liability (asset) during the period as a result
of contributions and benefit payments. Net interest expense and other expenses related to
the defined benefit plan are recognized in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change
in benefit that relates to past service or the gain or loss on curtailment is recognized
immediately in profit or loss.
Short-term Employee Benefits
Short-term employee benefits are expensed as the related service is provided. A liability
is recognized for the amount expected to be paid if the Parent Company has a present
legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
Other Long-term Employee Benefits
The Parent Companys net obligation in respect of long-term employee benefits is the
amount of future benefit that employees have earned in return for their service in the
current and prior periods. That benefit is discounted to determine its present value.
Remeasurements are recognized in profit or loss in the period in which they arise.
Termination Benefits
Termination benefits are expensed at the earlier of when the Parent Company can no
longer withdraw the offer of those benefits and when the Parent Company recognizes
costs for restructuring. If benefits are not expected to be settled wholly within twelve
months from the end of the reporting period, then they are discounted.
- 17 -
Equity
Capital Stock. Capital stock is measured at par value for all shares issued.
Contributed Surplus. Contributed surplus represents additional contribution of
shareholders as provided under the Code.
Retained Earnings. Retained earnings represent the cumulative balance of the net income
or loss of the Parent Company, net of any dividend distribution.
Revaluation Reserve. Revaluation reserve is comprised of the following: (1) gains and
losses due to the revaluation of AFS financial assets; and (2) actuarial gains and losses
from the remeasurement of the net pension liability.
Revenue Recognition
Revenue is recognized to the extent that it is probable that economic benefits will flow to
the Parent Company and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognized:
Net Premium
Net premium is recognized as gross premium on insurance contracts less reinsurance
premiums.
Gross Premium on Insurance Contracts. Premiums arising from insurance contracts are
initially recognized as income on the effective date of the insurance policies. Subsequent
to initial recognition, gross earned premiums on life insurance contracts are recognized as
revenue at the date when payments are due.
Reinsurance Premiums Ceded. Gross reinsurance premiums on traditional and variable
contracts are recognized as an expense when the policy becomes effective.
Investment Income
The Parent Companys investment income is comprised of interest income; fair value
gain (loss) of financial assets at FVPL; dividend income; rental income; and gain (loss)
on sale of AFS financial assets, real estate inventories and investment properties.
Interest Income. Interest income is recognized on an accrual basis using the effective
interest method. The EIR is the rate that exactly discounts the estimated future cash
receipts through the expected life of the financial asset. The EIR is established on initial
recognition of the financial asset and is not revised subsequently. When the related
financial asset becomes impaired, the recognition of interest income is suspended and/or
limited up to the extent of cash collections received.
The calculation of the EIR includes all fees, transaction costs, and discounts or premiums
that are an integral part of the EIR. Transaction costs are incremental costs that are
directly attributable to the acquisition or disposal of a financial asset.
Dividend Income. Dividend income is recognized when the shareholders right to receive
payment is established.
Rental Income. Rental income from investment properties is recognized on a straight-line
basis over the lease term.
- 18 -
Gain (loss) on Sale of AFS Financial Assets. Gain (loss) on the sale of AFS financial
assets, other than those classified as financial assets at FVPL are calculated as the
difference between net sales proceeds and acquisition cost less any impairment in value.
Gain (loss) on the sale of AFS financial assets are recognized in profit or loss when the
sales transaction occurred.
Gain on Sale of Real Estate Inventory. Revenue from the sale of real estate inventory is
measured at the fair value of the consideration received or receivable less the cost of real
estate inventory at the date of sale. Revenue is recognized when significant risks and
rewards of ownership have been transferred to the customer, recovery of the
consideration is probable, the associated costs can be estimated reliably, and the amount
of revenue can be measured reliably.
The transfer of risk and reward occurs when the rights to the real estate inventory is
delivered to the customer.
Service Fees
Insurance contract of the policyholders are charged for policy administration services,
surrenders and other contract fees. These fees and charges are recognized as revenue over
the period in which the related services are performed.
Other Income
Income from other sources is recognized when earned.
Net Benefits and Claims
The Parent Companys net benefits and claims consist of gross benefits and claims,
reinsurers share on benefits and claims, gross change in insurance contract liabilities and
reinsurers share on gross change in insurance contract liabilities.
Gross Benefits and Claims. Benefits and claims consist of benefits and claims of the
policyholders, which includes excess benefit claims for unit-linked contracts. Death
claims and surrenders are recorded on the basis of notifications received. Maturities and
annuity payments are recorded when due.
Reinsurers Share on Benefits and Claims. Reinsurers share on benefits and claims
pertains to the amount recoverable from reinsurers for recognized claims during the year.
Gross Change in Insurance Contract Liabilities. Gross change in insurance contract
liabilities represents the change in the valuation of legal policy reserves under Insurance
contract liabilities account in the separate statements of financial position.
Reinsurers Share on Gross Change in Insurance Contract Liabilities. Reinsurers share
on gross change in insurance contract liabilities pertains to the reinsurers share in the
change in the valuation of legal policy reserves under Insurance contract liabilities
account in the separate statements of financial position.
Operating and Administrative Expenses
Expenses are recognized when decrease in future economic benefits related to a decrease
in an asset or an increase of a liability has arisen that can be measured reliably. Expenses
are recognized when incurred.
General and Administrative Expenses. General and administrative expenses, other
underwriting expense and other investment expense, except for lease agreements, are
recognized as expense as they are incurred.
- 19 -
Commissions . Commissions are recognized when the insurance contracts are entered into
and the related premiums are recognized.
Investment Expenses. Investment expenses pertain to the interest incurred by the Parent
Company in relation to the Investment accounts payable obtained to fund its investment
in loans receivable (see Note 25).
Interest Expenses. Interest expenses on accumulated policyholders dividends and
premium deposit funds are recognized in profit or loss as it accrues and are calculated
using the effective interest method. Accrued interest is credited to the liability account
every policy anniversary date.
Foreign Currency Transactions

Transactions in foreign currencies are initially recorded using the exchange rate at the
date of the transactions. Monetary assets and liabilities denominated in foreign currencies
are retranslated using the closing exchange rates prevailing at reporting date; income and
expenses are translated using the average rate for the year.
Exchange gains or losses arising from foreign exchange transactions are credited to or
charged against profit or loss. For income tax reporting purposes, foreign exchange gains
or losses are treated as taxable income or deductible expenses, in the period such are
realized.
Leases
The determination of whether an arrangement is, or contains a lease is based on the
substance of the arrangement and requires an assessment of whether the fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset. A reassessment is made after inception of the lease only
if one of the following applies:
a. there is a change in contractual terms, other than a renewal or extension of the
arrangement; or
b. a renewal option is exercised or extension granted, unless that term of the renewal or
extension was initially included in the lease term; or
c. there is a change in the determination of whether fulfillment is dependent on a
specified asset; or
d. there is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date
when the change in circumstances gives rise to the reassessment for scenarios a, c or d
above, and at the date of renewal or extension period for scenario b.
Parent Company as Lessee
Leases where the lessor does not transfer substantially all the risks and rewards of
ownership of the related assets are classified as operating leases. Fixed lease payments
are recognized as rent expense on a straight-line basis over the lease term.
- 20 -
Parent Company as Lessor

Leases where the Parent Company does not transfer substantially all the risks and
benefits of ownership of the assets are classified as operating leases. Lease payments
received are recognized as income in profit or loss on a straight-line basis over the lease
term. Initial direct costs incurred in negotiating operating leases are added to the carrying
amount of the leased asset and recognized over the lease term on the same basis as the
rental income.
Income Tax
Current Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxing authorities. The tax rates and
tax laws used to compute the amount are those that are enacted or substantively enacted
as at reporting date.
Deferred Income Tax
Deferred tax is provided, using the liability method, on all temporary differences at the
reporting date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax
assets are recognized for all deductible temporary differences, carryforward of unused tax
credits from the excess of minimum corporate income tax (MCIT) over the regular
corporate income tax (RCIT), and unused net operating loss carryover (NOLCO), to the
extent that it is probable that sufficient taxable profit will be available against which the
deductible temporary differences and carryforward of unused tax credits from MCIT and
unused NOLCO can be utilized. Deferred tax, however, is not recognized on temporary
differences that arises from the initial recognition of an asset or liability in a transaction,
affects neither the accounting income nor taxable income or loss.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable income will be available
to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred
tax assets are reassessed at each reporting date and are recognized to the extent that it has
become probable that future taxable income will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are applicable to the
period when the asset is realized or the liability is settled, based on tax rates and tax laws
that have been enacted at the reporting date.
Current tax and deferred tax relating to items recognized directly in equity or other
comprehensive income is also recognized in equity or comprehensive income and not in
profit or loss.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right
exists to set off current tax assets against current tax liabilities and deferred taxes related
to the same taxable entity and the same taxation authority.
Movements in the deferred tax assets and liabilities arising from changes in tax rates are
charged or credited to income for the period.
- 21 -
Value-added Tax (VAT)

Revenue, expenses and assets are recognized, net of the amount of sales tax, except:
where the tax incurred on a purchase of assets or services is not recoverable from the
tax authority, in which case the tax is recognized as part of the cost of acquisition of
the asset or as part of the expense items as applicable; and
receivables and payables that are stated with the amount of tax included.
The net amount of VAT recoverable from or payable to the tax authority is included
under Other liabilities in the separate statements of financial position.
Contingencies
Contingent liabilities are not recognized in the Parent Companys separate financial
statements. They are disclosed unless the possibility of an outflow of resources
embodying benefit is remote. Contingent assets are not recognized in the Parent
Companys separate financial statements but disclosed when an inflow of economic
benefits is probable.
Events After the Reporting Date
Post year-end events that provide additional information about the Parent Companys
financial position at the reporting date (adjusting events) are reflected in the separate
financial statements when material. Post year-end events that are not adjusting events are
disclosed in the notes to the separate financial statements when material.
4. Critical Accounting Judgments and Estimates

The Parent Company makes judgment and estimates that affect the reported amounts of
assets, liabilities, income, expenses, and disclosures of contingent assets and liabilities, if
any, within the next accounting period. These judgments and estimates are continually
evaluated and are adjusted based on historical experience and other relevant factors,
including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
In the process of applying Parent Companys accounting policy, management has made
the following judgments, apart from those involving estimation, which have the most
significant effect on the amounts recognized in the Parent Companys financial
statements:
a) Product Classification
The Parent Company has determined that the unit-linked insurance policies it issues
that link the payments on the contract to units of internal investment funds has
significant insurance risk and therefore meets the definition of an insurance contract
and should be accounted for as such.
- 22 -
b) Impairment of Financial Assets

Investments at Fair Value
The Parent Company considers that investments are impaired when there has been a
significant or prolonged decline in the fair value below their cost. The determination
of what is significant or prolonged decline requires judgment. The Parent Company
treats significant generally as twenty percent (20%) or more and prolonged as
greater than twelve (12) months for quoted equity securities. In addition, the Parent
Company evaluates other factors, including normal volatility in share price for
quoted securities and the future cash flows and the discount factors for unquoted
securities. In making this judgment, the Parent Company evaluates among other
factors, the normal volatility in share/market price. In addition, impairment may be
appropriate when there is evidence of deterioration in the financial health of the
investee, industry and sector performance, changes in technology, and operational
and financing cash flows.
Receivables
The Parent Company reviews its receivables to assess impairment at least on an
annual basis, or as the need arises due to significant movements on certain accounts.
Receivables from policyholders and reinsurance that are individually significant are
assessed to determine whether objective evidence of impairment exists on an
individual basis, while those that are not individually significant are assessed for
objective evidence of impairment either on an individual or on collective basis. In
determining whether an impairment loss should be recorded in profit or loss, the
Parent Company makes judgment as to whether there are any observable data
indicating that there is a measurable decrease in the estimated future cash flows from
a portfolio of receivables before the decrease can be identified with an individual
receivable in that portfolio.
Estimates and Assumptions
The key estimates and assumptions concerning the future and other key sources of
estimation uncertainty at the reporting date that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next
financial year are discussed below.
(a) Insurance Contract Liabilities
The estimation of the ultimate liability arising from claims made under life insurance
contract is the Parent Companys most critical accounting estimate. There are several
sources of uncertainty that need to be considered in the estimation of the liability that
the Parent Company will ultimately pay to settle its benefits and claims.
The liability of the life insurance contracts are based on assumptions established at
the inception of the contract. At each reporting date, these estimates are reassessed
for adequacy and changes will be reflected in adjustments to the liability. The main
assumptions used relate to mortality, morbidity, investments and discount rates.
In determining the liabilities for life insurance contracts, estimates are made as to the
expected number of deaths, illness or injury for each of the years in which the Parent
Company is exposed to such risks. These estimates are based on standard mortality
and morbidity tables as required by the Code. The estimated number of deaths,
illness or injury determines the value of possible future benefits to be paid out, which
will be factored to insure sufficient amount of reserves, which in return is monitored
against current and future premiums.
- 23 -
Estimates are also made as to future investment income arising from the assets
backing life insurance contracts. These estimates are based on current market returns,
as well as expectations about future economic and financial developments.
In accordance with the provision of the Code, estimates for future deaths, illness or
injury and investment returns are determined at the inception of the contract and are
used to calculate the liability over the term of the contract. The interest rate used to
discount future liabilities does not exceed the interest rate prescribed by the
Insurance Commission. Likewise, no lapse and surrender assumptions are factored in
the computation of the liabilities.
Legal policy reserves are calculated in accordance with the requirements of the Code.
The liability adequacy test was performed using current best estimates on interest,
mortality, lapsation and expenses. The net present value of future cash flows as at
December 31, 2014 and 2013 computed under the requirements of PFRS 4,
amounted to cash outflows of P8.98 billion and P7.99 billion, respectively.
Accordingly, the recorded statutory reserves as at December 31, 2014 and 2013 of
P9.33 billion and P8.12 billion, respectively, is adequate using best estimate
assumptions (see Note 21).
(b) Liabilities arising from Claims made under Insurance Contracts
There are several sources of uncertainty that need to be considered in the estimation
of the liability that the Parent Company will ultimately pay for such claims. Although
the ultimate liability arising from life insurance contracts is largely determined by the
face amount of each individual policy, the Parent Company also issues accident and
health policies and riders where the claim amounts may vary.
Claims estimation by the Parent Company considers many factors such as industry
average mortality and morbidity experience, with adjustments to reflect Parent
Companys historical experience. These liabilities form part of the Parent Companys
Incurred but not Reported (IBNR) claims which amounted to P547.95 million and
P561.27 million as at December 31, 2014 and 2013, respectively, included in policy
and contract claims under Insurance contract liabilities.
(c) Impairment of Financial Assets
The Parent Company reviews its loans and receivables at each reporting date to
assess whether an allowance for impairment should be recorded in profit or loss. In
particular, judgment by management is required in the estimation of the amount and
timing of future cash flows when determining the level of allowance required. Such
estimates are based on assumptions about a number of factors and actual results may
differ, resulting in future changes to the allowance.
The level of this allowance is evaluated by management on the basis of factor that
affects the collectability of the accounts. These factors include, but are not limited to
age of balances, financial status of counterparties, payment behavior and known
market factors. The Parent Company reviews the age and status of receivables, and
identifies accounts that are to be provided with allowance on a regular basis.
- 24 -
In addition to specific allowance against individually significant loans and

receivables, the Parent Company also makes a collective impairment allowance
against exposures which, although not specifically identified as requiring a specific
allowance, have a greater risk of default than when originally granted. This collective
allowance is based on any deterioration in the internal rating of the loan or
investment since it was granted or acquired. These internal ratings take into
consideration factors such as concentration risks, identified structural weaknesses
and deterioration in cash flows.
The amount and timing of recorded expenses for any period would differ if the
Parent Company made different judgments or utilized different estimates. An
increase in allowance for impairment losses would increase recorded expenses and
decrease net income.
Provision for impairment loss amounted to P55.12 million and P46.23 million in
2014 and 2013, respectively (see Note 31). Insurance receivables and loans and
receivables, net of allowance for impairment losses, amounted to P8.10 billion and
P6.84 billion as at December 31, 2014 and 2013, respectively (see Notes 9 and 12).
(d) NRV of Real Estate Inventories
The Parent Company reviews real estate inventories for probable impairment in
value. Managements judgment in determining if the real estate inventories are
impaired is based on the assessment of the assets estimated net selling price and
managements plan in discontinuing the real estate projects.
Estimated selling price is derived for publicly available market data and historical
experience, while estimated cost of disposal are basically commission expense based
on historical experience. Management would also obtain the services of an
independent appraiser to determine fair value of undeveloped land based on the latest
selling prices of the properties of the same characteristics of the undeveloped land.
As at December 31, 2014 and 2013, the carrying value of real estate inventories
amounted to P31.82 million and P34.56 million, respectively (see Note 16).
(e) Impairment of Non-financial Assets
The Parent Company assesses impairment on assets whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable.
The factors that the Parent Company considers important which could trigger an
impairment review include the following:
significant underperformance relative to expected historical or projected future

operating results;
significant changes in the manner of use of the acquired assets or the strategy for
overall business; and
significant negative industry or economic trends.
The Parent Company recognizes an impairment loss whenever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is computed
using the value in use approach. Recoverable amounts are estimated for individual
assets or, if it is not possible, for cash-generating unit to which the asset belongs.
- 25 -
The Parent Company recognizes an impairment loss on real estate inventories

whenever NRV is lower than cost. NRV is the estimated selling price in the ordinary
course of business, less estimated necessary costs to sell.
As at December 31, 2014 and 2013, real estate inventories, investment properties,
property and equipment, and intangible assets aggregated to P762.57 million and
P679.73 million, respectively (see Notes 16, 17, 18 and 19).
(f) Realization of Deferred Tax Assets
Deferred tax assets are recognized for all deductible temporary differences to the
extent that it is probable that taxable profit will be available against which these can
be utilized. Significant management judgment is required to determine the amount of
deferred tax assets that can be recognized. These assets are periodically reviewed for
realization. Periodic reviews cover the nature and amount of deferred income and
expense items, expected timing when assets will be used or liabilities will be required
to be reported, reliability of historical profitability of businesses expected to provide
future earnings and tax planning strategies which can be utilized to increase the
likelihood that tax assets will be realized.
As at December 31, 2014 and 2013, the recognized deferred tax assets amounted to
P101.27 million and P52.71 million, respectively (see Note 33).
As at December 31, 2014 and 2013, the unrecognized deferred tax assets amounted
to nil and P99.08 million, respectively (see Note 33).
(g) Pension and Other Employee Benefits
The determination of pension obligation and other employee benefit is dependent on
the selection of certain assumptions used in calculating such amounts. Those
assumptions include, among others, discount rates, mortality rates and salary increase
rates. Due to the long term nature of these plans, such estimates are subject to
significant uncertainty.
The assumed discount rates were determined using the market yields of Philippine
government bonds with terms consistent with the expected employee benefit payout
as at the separate statements of financial position date. As at December 31, 2014 and
2013, the Parent Companys net pension liability amounted to P199.79 million and
P59.00 million, respectively (see Note 32).
(h) Contingencies
The Parent Company is currently involved in various legal proceedings. The estimate
of the probable costs for the resolution of these claims has been developed in
consultation with the legal counsels and based upon an analysis of potential results.
The Parent Company currently does not believe these proceedings will have a
material adverse effect on the Parent Companys separate statements of financial
position. It is possible, however, that the results of operations could be materially
affected by changes in the estimates.
- 26 -
5. Insurance and Financial Risks Management

The primary objective of the Parent Companys risk and financial management
framework is to protect the Parent Company from events that hinder the sustainable
achievement of the Parent Companys performance objectives including failing to exploit
opportunities. The Parent Company recognizes the critical importance of having efficient
and effective risk management systems in place.
The Parent Company has established a risk management function with clear terms of
reference for the BOD, its committees and the associated executive management
committees. Further, a clear organizational structure with documented delegated
authorities and responsibilities from the BOD to executive management committees and
senior managers has been developed. Lastly, a policy framework which sets out the risk
appetite of the Parent Company, risk management, control and business conduct
standards for the Parent Companys operations has been put in place. Each policy has a
member of senior management who is charged with overseeing compliance with the
policy throughout the Parent Company.
The BOD has approved the Parent Company risk management policies and meets
monthly to approve on any commercial, regulatory and own organization requirements in
such policies. The policies define the Parent Companys identification of risk and its
interpretation, limit structure to ensure the appropriate quality and diversification of
assets, alignment of underwriting and reinsurance strategy to the corporate goals and
specify reporting requirement.
Insurance Risk
The risk under an insurance contract that an insured event will occur including the
uncertainty of the amount and timing of any resulting claim. The principal risk the Parent
Company faces under such contracts is that the actual claims and benefits payments
exceed the carrying amount of insurance liabilities. This is influenced by the frequency of
claims, severity of claims and actual benefits paid are greater than originally estimated.
Terms and Conditions
The Parent Company principally writes life insurance where the life of policyholder is
insured against death, illness, injury or permanent disability, usually for pre-determined
amount.
Life insurance contracts offered by the Parent Company mainly include whole life
insurance, term insurance, endowments and unit-linked products.
Whole life insurance and term insurance are conventional products where lump sum
benefits are payable on death.
Endowment products are investments/savings products where lump sum benefits are
payable after a fixed period or on death before the period is completed.
Unit-linked products differ from conventional policies as in unit-linked products, a
guaranteed percentage of each premium is allocated to units in a pooled investment fund
and the policyholder benefits directly from the total investment growth and income of the
fund.
The risks associated with the life and accident and health products are underwriting risk
and investment risk.
- 27 -
The main risks the Parent Company is exposed to include:
Mortality Risk - risk of loss arising from policyholder death experience being
different than expected.
Morbidity Risk - risk of loss arising from policyholder health experience being
different than expected.
Expense Risk - risk of loss arising from expense experience being different than
expected.
Policyholder Decision Risk - risk of loss arising from policyholder experience (lapses
and surrenders) being different than expected.
These risks do not vary significantly in relation to the location of the risk insured by the
Parent Company, type of risk insured and by industry. Undue concentration by amounts
could have an impact on the severity of benefit payments on a portfolio basis.
The Parent Companys underwriting strategy is designated to ensure that risks are well
diversified in terms of type of risk and level of insured benefits. This is largely achieved
through diversification across industry sectors and geography, the use of medical
screening in order to ensure that pricing takes account of current health conditions and
family medical history, regular review of actual claims experience and product pricing, as
well as detailed claims handling procedures. Underwriting strategy is in place to enforce
appropriate risk selection criteria.
Concentration of Insurance Risk
The table below sets out the Parent Companys concentration of insurance risk based on
the sum assured:
2013
2014
Number
of Policies
446,931
16,095
47,982
27,078
13,488
2,601
554,175
Group life
Accident and health
Endowment
Whole life
Term
Variable/unit-linked
Sum assured
Number
of Policies
Sum assured
P611,475,475,539
94,888,394,790
12,424,414,592
8,717,018,618
4,053,257,005
3,355,481,605
449,744
17,504
40,277
28,110
14,141
1,973
P303,904,378,839
5,215,378,184
9,803,980,575
8,544,235,019
4,457,673,832
2,526,752,744
P734,914,042,149
534,263
P334,452,399,193
The table below sets out the concentration of life insurance liabilities by type of contract,
at gross and net of reinsurance.
Net
Legal Policy
Reserve
Gross
Legal Policy
Reserve
2013
Reinsurers
Share on
Liabilities
Net
Legal Policy
Reserve
P832,382
3,307,440
26,457,274
1,597,660
-
P3,268,050,110
2,509,559,280
2,076,230,781
1,006,461,176
226,703,723
210,921,332
P3,012,361,722
1,893,462,467
1,849,525,778
879,360,368
286,397,121
197,994,027
P734,262
3,134,445
1,873,314
-
P3,011,627,460
1,893,462,467
1,846,391,333
879,360,368
284,523,807
197,994,027
P9,330,121,158 P32,194,756
P9,297,926,402
P8,119,101,483
P5,742,021
P8,113,359,462
2014
Gross Reinsurers
Legal Policy
Share on
Reserve
Liabilities
Endowment
Variable/unit-linked
Whole life
Group life
Term
Accident and health
P3,268,882,492
2,509,559,280
2,079,538,221
1,032,918,450
228,301,383
210,921,332
- 28 -
The table below sets out the concentration of life insurance liabilities with and without
DPF, at gross and net of reinsurance.
Gross
Legal Policy
Reserve
2014
Reinsurers
Share on
Liabilities
Net
Legal Policy
Reserve
With fixed and guaranteed terms

Fixed and guaranteed - non-participating
Partially fixed and guaranteed - participating
Unit linked
P4,771,449,406
2,049,112,472
2,509,559,280
P29,668,378
2,526,378
-
P4,741,781,028
2,046,586,094
2,509,559,280
Total insurance liabilities
P9,330,121,158
P32,194,756
P9,297,926,402
Gross
Legal Policy
Reserve
2013
Reinsurers
Share on
Liabilities
Net
Legal Policy
Reserve
With fixed and guaranteed terms

Fixed and guaranteed - non-participating
Partially fixed and guaranteed - participating
Unit linked
P4,393,520,265
1,832,118,751
1,893,462,467
P3,332,162
2,409,859
-
P4,390,188,103
1,829,708,892
1,893,462,467
Total insurance liabilities
P8,119,101,483
P5,742,021
P8,113,359,462
Classification by Attained Age (Based on 2014 and 2013 Data of Inforce Policies)
The table below presents the concentration of risk by attained age. For individual
insurance, exposure is concentrated on age brackets 40-44 to 50-54 and those below 20.
Attained
Age
2014
Individual
Gross of Reinsurance
Exposure
Concentration
000
(%)
Net Reinsurance
Exposure
Concentration
000
(%)
<20
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
80 +
P1,099,431,615
177,781,412
284,548,935
425,523,643
523,038,086
559,500,782
629,385,796
666,640,335
531,678,304
384,354,405
170,885,909
91,529,137
26,578,461
5,845,276
19.71%
3.19%
5.10%
7.63%
9.38%
10.03%
11.29%
11.95%
9.53%
6.89%
3.06%
1.64%
0.48%
0.10%
P1,099,273,203
177,717,566
284,430,676
425,292,901
522,453,221
558,957,880
628,707,159
665,812,158
530,556,451
383,654,728
170,519,895
91,228,736
26,536,175
5,843,866
19.73%
3.19%
5.10%
7.63%
9.38%
10.03%
11.29%
11.95%
9.52%
6.89%
3.06%
1.64%
0.48%
0.10%
Total
P5,576,722,096
100.00%
P5,570,984,615
100.00%
- 29 -
2013
Individual
Gross of Reinsurance
Exposure
Concentration
000
(%)
Attained
Age
Net Reinsurance
Exposure
Concentration
000
(%)
<20
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
80 +
P1,052,518,980
153,388,789
250,224,311
359,459,911
482,545,295
519,848,655
603,601,616
636,415,955
489,348,285
357,168,756
155,265,700
59,791,566
22,623,601
6,083,198
20.44%
2.98%
4.86%
6.98%
9.37%
10.10%
11.72%
12.36%
9.51%
6.94%
3.02%
1.16%
0.44%
0.12%
P1,052,408,988
153,320,544
250,086,805
359,217,462
481,934,749
519,343,698
602,780,969
635,406,379
488,449,240
356,438,396
154,906,813
59,624,783
22,541,804
6,081,970
20.46%
2.98%
4.86%
6.99%
9.37%
10.10%
11.72%
12.36%
9.50%
6.93%
3.01%
1.16%
0.44%
0.12%
Total
P5,148,284,618
100.00%
P5,142,542,600
100.00%
The table below presents the concentration of risk by business type for group insurance.
Business Type
Credit life insurance
Employer-employee/
association benefit
Compulsory migrant
workers insurance
Personal accident
Coconut farmers
insurance
Microinsurance
Reinsurance assumed
Preneed planholders
2014
Net Reinsurance
Exposure
Concentration
2013
Net Reinsurance
Exposure
Concentration
P846,747,758
84.13%
P649,201,453
73.83%
74,217,048
7.38%
73,637,423
8.37%
38,293,711
20,474,743
3.80%
2.04%
110,813,773
9,464,094
12.60%
1.08%
11,387,543
10,575,797
4,155,449
609,127
1.13%
1.05%
0.41%
0.06%
7,000,681
12,076,403
6,924,257
10,241,784
0.80%
1.37%
0.79%
1.16%
P1,006,461,176
100.00%
P879,360,368
100%
The table below presents the concentration of risk by industry type for accident and
health insurance.
Industry Type
Nonfinancial
Financial
Government
Non-profit institutions
2014
Net Reinsurance
Exposure
Concentration
2013
Net Reinsurance
Exposure
Concentration
P147,501,954
58,596,533
3,385,159
1,437,686
69.93%
27,78%
1.61%
0.68%
P122,209,821
53,380,799
20,069,984
2,333,423
61.72%
26.96%
10.14%
1.18%
P210,921,332
100.00%
P197,994,027
100%
Source of Uncertainty in the Estimation of Future Claim Payment

Estimation of future payments and premium receipts is subject to unpredictability of
changes in mortality and morbidity levels. The Parent Company adopts standard industry
data in assessing future benefit payments and premium receipts as approved by IC.
Adjustments are made, if necessary, according to the experience of the Parent Company.
- 30 -
For individual life insurance, no adjustment is made by the Parent Company to the
standard mortality table. For group life, accident and health insurance, the mortality table
is adjusted to reflect the Parent Companys actual and projected experiences which are
given weights or credibility depending on the amount and length of exposure under
consideration. The Parent Company currently monitors its actual experience on
individual business on a per policy basis and on an aggregate basis, and reporting the
same to management.
The liability for these contracts comprises the IBNR provision, a provision for reported
claims not yet paid and a provision for unexpired risk at reporting dates. The IBNR
provision is based on historical experience and is subject to a degree of uncertainty.
Key Assumptions
Material judgment is required in determining the liabilities and in the choice of
assumptions relating to insurance contracts. Assumptions are based on past experience,
current internal data and conditions and external market indices and benchmarks, which
reflect current observable market prices and other published information. Such
assumptions are determined as appropriate at inception of the contract and no credit is
taken for possible beneficial effects of voluntary withdrawals. Assumptions are further
evaluated on a continuous basis in order to ensure realistic and reasonable valuations.
Assumptions are subject to the provisions of the Code and guidelines set by IC.
For insurance contracts, the Parent Company determines the assumptions in relation to
future deaths, illness or injury and investment returns at inception of the contract.
Subsequently, new estimates are developed at each reporting date and liabilities are
tested to determine whether such liabilities are adequate in the light of the latest current
estimates. The initial assumptions are not altered if the liabilities are considered adequate.
If the liabilities are not adequate, assumptions are altered (unlocked) to reflect the latest
current estimates. As a result, the effect of changes in the underlying variables on
insurance liabilities and related assets is not symmetrical. Improvements in estimates
have no impact on the value of the liabilities and related assets, while significant
deteriorations in estimates have an impact.
The key assumptions to which the estimation and adequacy testing of liabilities are
particularly sensitive are as follow:
Mortality and Morbidity Rates

Assumptions are based on standard industry and national mortality and morbidity
tables, according to the type of contract written and which may be adjusted where
appropriate to reflect the Parent Companys own experiences. Assumptions are
differentiated by age, underwriting class and contract type.
An increase in mortality and morbidity rates would lead to a larger number of claims
and claims occurring sooner than anticipated, increasing the expenditure and
generally reducing profits for the shareholders.
- 31 -
Discount Rate
Life insurance liabilities are determined as the sum of the discounted value of the
expected benefits, less the discounted value of the expected theoretical premiums that
would be required to meet these future cash outflows. The weighted average rate of
return is derived based on model portfolio that is assumed to back up liabilities,
consistent with the long-term assets allocation strategy. These estimates are based on
current market returns as well as expectations about future economic and financial
developments. Interest rates used for estimating liabilities is determined by the
Insurance Commissioner.
An increase in investment return would lead to an increase in profits for the
shareholders. A decrease in the discount rate will increase the value of the liability.
As required by the Code, lapse, surrender and expense assumptions are not factored
in the computation of the insurance contract liabilities.
Sensitivities
As part of the Parent Companys investment strategy, in order to reduce both insurance
and financial risk, the Parent Company matches its investments to the liabilities arising
from insurance, by reference to the type of benefits payable to the policyholders.
The analysis below is performed for reasonably possible movements in key variables
with all other variables held constant, showing the impact on liabilities, income and
equity. The correlation of variables will have a significant effect in determining the
ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions,
assumption changes had to be done on an individual basis. It should be noted that
movements in these variables are nonlinear.
2014
Mortality/morbidity
Discount rate
2013
Mortality/morbidity
Discount rate
Increase
(Decrease)
on Net
Liabilities
Increase
(Decrease)
on Profit
before Tax
Increase
(Decrease)
on Equity
(P65,402,859)
(P65,402,859)
(65,539,363)
65,539,363
65,539,363
(516,057,785)
(516,057,785)
(516,057,785)
Change in
Assumption
110% of original
mortality table
90% of original
mortality table
Original valuation
interest rate +1%
Original valuation
interest rate -1%
P65,402,859
P670,269,228
P670,269,228
P670,269,228
Increase
(Decrease)
on Profit
before Tax
Increase
(Decrease)
on Equity
(P59,466,564)
(P59,466,564)
(61,664,190)
61,664,190
61,664,190
(464,151,768)
464,151,768
464,151,768
599,769,069
(599,769,069)
(599,769,069)
Increase
(Decrease)
on Net
Liabilities
Change in
Assumption
110% of original
mortality table
90% of original
mortality table
Original valuation
interest rate +1%
Original valuation
interest rate -1%
P59,466,564
The methods used for deriving sensitivity information and significant assumptions did
not change from the previous period.
- 32 -
Investment Risk
The investment risk represents the exposure to loss resulting from cash flows from
invested assets, primarily long-term fixed rate investments, being less than the cash flows
required to meet the obligations of the expected policy and contract liabilities and the
necessary return on investments. Additionally, there exists a future investment risk
associated with certain policies currently in force which will have premium receipts in
the future. That is, the investment of those future premiums receipts may be at a yield
below that required to meet future policy liabilities. To maintain an adequate yield to
match the interest necessary to support future policy liabilities, management reinvest the
proceeds of the maturing securities and future premium receipts to financial instruments
with satisfactory investment quality.
The Parent Companys strategy is to invest primarily in high quality securities while
maintaining diversification to avoid significant exposure to issuer, industry and/or
country concentrations taking into consideration limitations set by IC. Another strategy is
to produce cash flows required to meet maturing insurance liabilities. The Parent
Company invests in equities for various reasons, including diversifying its overall
exposure to equity price risk. AFS financial assets are subject to declines in fair value.
Generally, insurance regulations restrict the type of assets in which an insurance
company may invest.
The Parent Company uses asset-liability matching (ALM) as a management tool to
determine the composition of the invested assets and appropriate investment and
marketing strategies. As part of these strategies, the Parent Company may determine that
it is economically advantageous to be temporarily in an unmatched position due to
anticipated interest rate or other economic changes.
Financial Risk
The Parent Company is exposed to financial risk through its financial assets, financial
liabilities and insurance liabilities. In particular, the key financial risk that the Parent
Company is exposed to is that the proceeds from its financial assets are not sufficient to
fund the obligations arising from its insurance contracts. The most important components
of this financial risk are credit risk, liquidity risk and market risk.
There has been no change to the Parent Companys exposure to financial risks (i.e. credit
risk, liquidity risk and market risks) or the manner in which it manages and measures the
risks since prior financial year.
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an
obligation and cause the other party to incur a financial loss.
The following policies and procedures are in place to mitigate the Parent Companys
exposure to credit risk:
A credit risk policy setting out the assessment and determination of what constitutes
credit risk for the Parent Company. Compliance with the policy is monitored and
exposures and breaches are reported to the Parent Companys risk committee. The
policy is regularly reviewed for pertinence and for changes in the risk;
Net exposure limits are set for each counterparty or group of counterparties,
geographical and industry segments (i.e., limits are set for investments and cash
deposits, foreign exchange trade exposures and minimum credit ratings for
investments that may held);
- 33 -
Reinsurance is placed with highly rated counterparties and concentration of risk is

avoided by following policy guidelines in respect of counterparties limits that are set
each year and are subject to regular reviews. At each reporting date, management
performs an assessment of creditworthiness of reinsurers and updates the reinsurance
purchase strategy, ascertaining suitable allowance for impairment;
The Parent Company sets the maximum amounts and limits that may be advanced to
corporate counterparties by reference to their long term credit ratings; and
The credit risk in respect of customer balances, incurred on nonpayment of premiums

or contributions will only persist during the grace period specified in the policy
document or trust deed until expiry, when the policy is either paid up or terminated.
Commissions paid to intermediaries are offset against any amounts due to reduce the
risk of noncollection.
Except for mortgage loans, collateral loans, installment contract receivable and policy
loans, the maximum exposure to credit risk of all financial assets is equal to their
carrying amounts.
Policy loans are secured by the cash surrender values on the related policies. The Parent
Company grants policy loans up to the extent of the cash surrender values accumulated
on the latest policy anniversary dates. The Parent Company is not exposed to credit risk
with respect to policy loans.
The tables below show the financial effect of the collateral and credit enhancement to the
Parent Companys maximum credit risk as at December 31, 2014 and 2013:
Net Exposure
Financial Effect
of Collateral or
Credit
Enhancement
P2,454,634,764
P2,056,605,578
P398,029,186
P2,056,605,578
370,098,469
158,709,874
372,608,841
161,455,909
161,455,909
370,098,469
161,455,909
P2,983,443,107
P2,590,670,328
P559,485,095
P2,588,159,956
Net Exposure
Financial Effect
of Collateral or
Credit
Enhancement
Gross Maximum
Mortgage loans
Installment contract
receivables
Collateral loans
Gross Maximum
Mortgage loans
Installment contract
receivables
Collateral loans
2014
Fair Value of
Collateral or
Credit
Enhancement
2013
Fair Value of
Collateral or
Credit
Enhancement
P1,905,657,938
P2,407,134,126
P -
P1,905,657,938
369,758,297
66,766,812
372,266,362
1,155,215
65,611,597
369,758,297
1,155,215
P2,342,183,047
P2,780,555,703
P65,611,597
P2,276,571,450
The Parent Companys concentration of credit risk arises from loans and receivables
since the said financial instruments amounted to P8.08 billion (2013: P7.08 billion) and
44% (2013: 39%) of its total financial assets as at December 31, 2014.
- 34 -
The following tables provide information regarding the credit risk exposure of the Parent
Company by classifying assets according to the Parent Companys credit ratings of
counterparties.
2014
Neither Past Due nor Impaired
NonNonInvestment
Investment
Investment
Grade
Grade
Grade
Satisfactory Unsatisfactory
Cash and cash equivalents P1,474,700,678
Premiums due and
uncollected
Due from agents
Debt securities
400,504,351
Debt securities
626,982,228
Notes receivable
588,755,405
Mortgage loans
2,010,743,373
Policy loans
10,281,893
Installment contracts
receivable
18,982,733
Claims receivable
HMO billback
96,936,934
Investment accounts
receivable
380,122,851
Advances to officers
and employees
962,583
Collateral loans
102,361,005
Others
50,007,342
Reinsurance assets
P5,761,341,376
P -
327,908,833
27,855,096
P -
P1,791,564,286
19,065,924
27,158,444
Past Due
and
Impaired
P -
P -
58,257,209
5,132,414
9,450,822
17,182,694
Total
P1,474,700,678
395,616,864
50,170,204
400,504,351
626,982,228
14,984,832
36,115,900
-
12,828,719
4,348,412
-
2,355,272,643
388,069,294
-
182,892,887
15,357,785
-
3,154,734,485
2,454,634,764
10,281,893
502,257
247,909,477
40,482,708
344,109
38,249,877
350,269,370
204,658,794
116,814,718
370,098,469
247,909,477
497,143,031
6,074,915
63,597,144
13,107,049
462,901,958
49,748
296,568
18,831,349
-
2,601,789
50,148,914
-
5,903,387
-
5,301,255
158,709,874
100,719,723
38,000,000
P80,573,697 P3,478,007,571
P360,709,341
P10,448,409,253
1,687,134
32,331,031
38,000,000
P767,777,268
2013
Neither Past Due nor Impaired
NonNonInvestment
Investment
Investment
Grade
Grade
Grade
Satisfactory Unsatisfactory
Premiums due and
uncollected
Due from agents
Debt securities
Debt securities
Notes receivable
Mortgage loans
Policy loans
receivable
Claims receivable
HMO billback
Investment accounts
receivable
and employees
Collateral loans
Others
Reinsurance assets
Past Due
but not
Impaired
P -
154,069,350
3,703,423
Past Due
but not
Impaired
P -
P -
Past Due and

Impaired
P -
26,633,516
-
Total
P1,791,564,286
199,768,790
30,861,867
161,872,186
161,872,186
353,873,246
353,873,246
2,618,970,713
1,351,513,651
549,328,568
23,221,786
125,179,534
-
8,364,438
6,172,721
-
367,580,003
317,951,447
232,872,070
-
2,178,294
-
496,701,476
82,097
29,890,753
17,719,622
74,728,081
P8,177,918,400
253,072,388
15,357,785
-
2,903,629,325
1,905,657,938
549,328,568
96,261,326
369,758,297
247,909,477
414,212,773
4,394,029
15,582,780
516,760,382
468,237
127,463
28,698,683
388,204
381,303
183,894
-
2,349,212
48,665,887
-
33,096,406
66,766,812
75,039,438
28,698,683
P568,422,643
P22,062,883
P472,960,301
P9,648,798,474
- 35 -
407,434,247
-
P407,434,247
The Parent Company uses an internal credit rating concept based on the borrowers and
counterparties overall credit worthiness, as follows:
Investment Grade
Non-investment Grade satisfactory
Non-investment Grade unsatisfactory
Rating given to borrowers and counterparties who

have very strong capacity to meet their obligations.
Rating given to borrowers and counterparties whose
outstanding obligation is within the acceptable age
of group.
Rating given to borrowers and counterparties whose
outstanding obligation is nearing to be past due or
impaired.
The tables below show the aging analysis of the financial assets.
2014
Premiums due and
uncollected
Due from agents
Notes receivable
Mortgage loans
receivable
Healthcare management
organization (HMO)
billback
Collateral loans
and employees
Investment accounts
receivable
Others
Total
More than 90 Days

Past Due
Past Due
but not
and
Impaired
Impaired
<30 Days
31 to
60 Days
61 to
90 Days
P174,552,713
18,272,664
P64,677,907
5,993,190
P88,678,213
3,589,242
P58,257,209
5,132,414
P9,450,822
17,182,694
P395,616,864
50,170,204
588,755,405
2,010,743,373
14,984,832
36,115,900
12,828,719
4,348,412
2,355,272,643
388,069,294
182,892,887
15,357,785
3,154,734,485
2,454,634,764
18,982,733
502,257
344,109
350,269,370
96,936,934
102,361,005
40,482,708
-
38,249,877
296,568
204,658,794
50,148,914
962,583
1,687,134
49,748
2,601,789
380,122,851
76,658,788
12,660,469
6,074,915
8,661,896
63,597,144
2,738,569
13,107,049
-
462,901,958
100,719,722
P3,468,349,049
P177,104,397
P163,121,699
P3,480,746,140
P360,709,341
P7,650,030,626
More than 90 Days

Past Due
Past Due
but not
and
Impaired
Impaired
Total
116,814,718
5,903,387
-
Total
370,098,469
497,143,031
158,709,874
5,301,255
2013
Premiums due and
uncollected
Due from agents
Notes receivable
Mortgage loans
receivable
Healthcare management
organization (HMO)
billback
Collateral loans
and employees
Investment accounts
receivable
Others
Total
<30 Days
31 to
60 Days
61 to
90 Days
P96,494,278
1,481,370
P37,511,528
-
P19,167,811
2,222,053
P46,595,173
27,158,444
P26,633,516
-
P199,768,790
30,861,867
2,489,899,529
1,351,513,652
49,096,149
125,179,534
27,074,048
6,172,721
337,559,599
422,792,031
253,072,388
15,357,785
2,903,629,325
1,905,657,938
31,435,782
489,324
2,178,294
335,654,897
82,287,940
14,001,719
92,911,467
-
73,625,949
381,303
165,387,417
52,383,790
96,261,326
48,665,887
414,212,773
66,766,812
28,323,675
468,237
388,204
3,916,290
2,349,212
33,096,406
424,986,220
57,627,193
82,097
127,463
4,394,029
183,894
87,298,036
17,100,888
15,582,780
15,037,407
516,760,382
75,039,438
P4,578,051,358
P305,865,799
P135,788,306
P1,495,846,565
P472,960,301
P6,515,552,028
369,758,297
An allowance for impairment is set up in the Parent Companys separate statements of

financial position for assets classified as past-due and impaired. Financial assets are
considered as past due and impaired when the contractual payments are in arrears by 90
days and the amount is not adequately secured. When contractual payments are in
arrears0020more than 90 days but adequately secured, financial assets are classified as
past-due but not impaired with no allowance for impairment is recorded.
- 36 -
The amount and type of collateral required depends on an assessment of the credit risk of
the counterparty. Guidelines are implemented regarding the acceptability of types of
collateral and the valuation parameters. Collateral is mainly obtained for securities
lending and for cash purposes. Credit risk is also mitigated by entering into collateral
agreements. Management monitors the market value of the collateral, requests additional
collateral when needed and performs an impairment valuation when applicable. The
related fair value of the collateral for the above past due and impaired assets amounted to
P654.12 million and P466.50 million as at December 31, 2014 and 2013, respectively.
Liquidity Risk
Liquidity risk is the risk that the Parent Company will encounter difficulty in meeting its
obligations associated with its financial liabilities that are settled by delivering cash or
another financial asset.
exposure to liquidity risk:
A liquidity risk policy setting out the assessment and determination of what
constitutes liquidity risk for the Parent Company. Compliance with the policy is
monitored and exposures and breaches are reported to the Parent Companys risk
committee. The policy is regularly reviewed for pertinence and for changes in the
risk environment;
Set guidelines on asset allocations, portfolio limit structures and maturity profiles of
assets, in order to ensure sufficient funding available to meet insurance and
investment contracts obligations; and
Setting up contingency funding plans which specify minimum proportions of funds

to meet emergency calls as well as specifying events that would trigger such plans.
The tables below summarizes the maturity profile of the Parent Companys financial
liabilities based on contractual undiscounted payment except for the legal policy reserves
of the life insurance contracts which is included as part of Insurance contract liabilities
account.
2014
Up to a Year
Insurance contract
liabilities
Premium deposit funds*
Insurance payables
Accounts payable and
accrued expenses
P1,639,011,549
692,652,228
179,479,629
1 - 5 Years
P3,530,980,739 P5,197,810,501
-
49,284,192
P2,560,427,598
Over 5 Years
P3,530,980,739 P5,197,810,501
No Term/
1-90 days
Total
P -
P10,367,802,789
692,652,228
179,479,629
49,284,192
P -
P11,289,218,838
*Excluding amounts received that will be applied to premiums due.
2013
Insurance contract
liabilities
Premium deposit funds*
Insurance payables
accrued expenses
Up to a Year
1 - 5 Years
Over 5 Years
P1,452,410,113
534,157,807
29,548,393
P2,876,211,072
-
P4,736,873,306
-
205,388,692
776,052,159
P2,221,505,005
P3,652,263,231
*Excluding amounts received that will be applied to premiums due.
- 37 -
133,330,426
No Term/
1-90 days
P -
Total
P9,065,494,491
534,157,807
29,548,393
81,662,245
1,196,433,522
P4,870,203,732 P81,662,245
P10,825,634,213
It is unusual for a company primarily engaged in insurance business to predict its funding
requirements with absolute certainty as theory of probability is applied on insurance
contracts to determine the likely provision and the time period when such liabilities will
require settlement. Thus, the amounts and maturities in respect of insurance liabilities are
based on managements best estimate using statistical techniques and data on past
experience.
Market Risk
Market risk is the risk of change in fair value of financial instruments from fluctuations
in foreign exchange rates (currency risk), market interest risk rates (fair value interest rate
risk) and market prices (price risk), whether such change in price is caused by factors
specific to the individual instrument or its issuer or factors affecting all instruments
traded in the market.
exposures to market risk:
The Parent Companys market risk policy sets out the assessment and determination
of what constitutes market risk for the Parent Company. Compliance with the policy
is monitored and exposures and breaches are reported to the Parent Companys risk
committee. The policy is reviewed regularly for pertinence and for changes in the
risk environment.
Set asset allocation and portfolio limit structure to ensure that assets back specific
policyholders liabilities and that assets are held to deliver income and market value
appreciation for policyholders in line with their expectations.
Stipulated diversification benchmarks by type of instrument of the Parent Company.
Currency Risk
Currency risk is the risk that the fair value of future cash flows of financial instrument
will fluctuate because of changes in foreign exchange rates.
The Parent Companys principal transactions are carried out in Philippine peso and its
foreign exchange risk arises primarily with respect to the transactions denominated in
U.S. dollar, where some of its products are denominated. The Parent Companys
financial assets are primarily denominated in the same currency as its insurance
contracts, which mitigate the foreign exchange rate risk. Thus, the main foreign exchange
risk arises from recognized assets and liabilities denominated in currency other than in
which the insurance contracts are expected to be settled. The following tables show the
details of the Parent Companys foreign-currency denominated monetary assets and
liabilities and their Philippine peso equivalents:
2014
Assets
Accrued income
Liabilities
- 38 -
US$
PHP
3,549,345
3,726,954
5,224,501
346,440
12,847,240
158,361,126
166,285,507
233,101,561
15,457,120
573,205,313
6,848,656
287,434
7,136,090
305,566,485
12,824,443
318,390,928
P5,711,150
P254,814,386
2013
Assets
Accrued income
Liabilities
US$
PHP
3,711,042
3,579,323
4,696,594
184,602
164,822,191
158,972,052
208,594,537
7,942,787
12,171,561
540,331,567
9,224,702
457,057
409,705,934
20,299,592
9,681,759
430,005,526
2,489,802
110,326,041
In translating the foreign currency-denominated monetary assets and liabilities, the

exchange rates used were P44.72 to US$1.00 and P44.40 to US$1.00, the PHP-US$
prevailing exchange rates as at December 31, 2014 and 2013, respectively.
with all other variables held constant, showing the impact on income before income tax
(due to changes in fair value of currency sensitive monetary assets and liabilities). There
is no other impact on the Parent Companys equity other than those already affecting
profit or loss.
The correlation of variables will have a significant effect in determining the ultimate
impact on market risk, but to demonstrate the impact, key changes had to be changed on
an individual basis. It should be noted that movements in these variables are nonlinear.
2014
2013
Currency
USD
USD
USD
USD
Change in
Variables
-2.70%
+2.40%
+8.70%
-1.00%
Impact on income
before income tax
Increase (decrease)
(P6,896,670)
6,130,374
9,598,366
(1,103,260)
Impact on equity
Increase (decrease)
(P6,896,670)
6,130,374
9,598,366
(1,103,260)
Reasonably possible movements in foreign exchange rate are computed based on average
percentage changes in the IC closing rate for two (2) years.
Fair Value Interest Rate Risk
Fair value interest rate risk is the risk that the value of a financial instrument will
fluctuate because of changes in market interest rate. The Parent Companys fixed rate
investments classified as AFS financial assets are particularly exposed to such risk.
The Parent Companys investment policy requires it to buy and hold AFS financial
assets, unless the need to sell arises, and to reduce the duration gap between financial
assets and financial liabilities to minimize interest rate risk.
- 39 -
The analysis below is performed for reasonably possible movements in interest rates with
all other variables held constant, showing the impact on profit before tax (due to changes
in fair value of fixed rate financial assets and liabilities).
Currency
PHP
USD
PHP
USD
Currency
PHP
USD
PHP
USD
Change in
Variables
1.20%
0.06%
-0.09%
-1.30%
2014
Impact on income
before income tax
Increase (decrease)
(P823,183)
(89,035)
58,991
1,938,830
Impact on equity
Increase (decrease)
(P823,183)
(89,035)
58,991
1,938,830
Change in
Variables
+0.31%
+2.17%
-1.10%
-0.02%
2013
Impact on income
before income tax
Increase (decrease)
(P39,792,791)
(39,484,785)
57,803,441
10,486,121
Impact on equity
Increase (decrease)
(P39,792,791)
(39,484,785)
57,803,441
10,486,121
In 2014 and 2013, the Parent Company determined the reasonably possible change in
interest rates using the percentage changes in weighted average yield rates of outstanding
securities for the past two (2) years.
Equity Price Risk
The Parent Companys equity price risk exposure at year-end relates to financial assets
and liabilities whose values will fluctuate as a result of changes in market prices,
principally, equity securities classified as financial assets at FVPL and AFS financial
assets.
The Parent Companys price risk relates to financial assets whose values will fluctuate as
a result of changes in market prices, principally investment securities not held for the
account of unit-linked business.
The correlation of variables will have a significant effect in determining the ultimate
impact on price risk, but to demonstrate the impact due to changes in variables, variables
had to be changed on an individual basis. It should be noted that movements in these
variables are nonlinear.
with all other variables held constant, showing the impact on income before income tax
(due to changes in fair value of financial assets and liabilities whose fair values are
recognized in profit or loss) and equity (that reflects adjustments to income before
income tax and changes in fair value of AFS financial assets).
Market Indices
PSE index
PSE index
Change in
Variables
28%
-5%
2014
Impact on income
before income tax
Increase (Decrease)
P412,062,637
(73,582,614)
- 40 -
Impact on equity
Increase (Decrease)
P412,062,637
(73,582,614)
Market Indices
PSE index
PSE index
Change in
Variables
+37%
-6%
2013
Impact on income
before income tax
Increase (Decrease)
P124,217,909
(20,143,445)
Impact on equity
Increase (Decrease)
P124,217,909
(20,143,445)
In 2014 and 2013, the change in variables was derived from the percentage changes of
the composite PSE index for the past six (6) years.
6. Capital Management
Regulatory Framework
Regulators are interested in protecting the rights of the policyholders and maintain close
monitoring to ensure that the Parent Company is satisfactory managing affairs for their
benefit. At the same time, the regulators are also interested in ensuring that the Parent
Company maintains appropriate solvency position to meet liabilities arising from claims
and that the risk levels are at acceptable levels.
The operations of the Parent Company are subject to the regulatory requirements of the
IC. Such regulations not only prescribe approval and monitoring of activities but also
impose certain restrictive provisions, such as margin of solvency (MOS), to minimize the
risk of default and insolvency on the part of the insurance companies to meet the
unforeseen liabilities as these arise, net worth requirements, and Risk-Based Capital
(RBC) requirements.
Capital Management Framework
The Parent Companys capital includes capital stock, contributed surplus and retained
earnings.
The Parent Company maintains a capital base to cover risks inherent in the business.
Externally imposed capital requirements are set and regulated by the IC. These
requirements are put in place to ensure solvency margins.
The Parent Company manages its capital requirements by complying with requirements
and limitations enforced by the IC, by maintaining profitability of the business and by
aligning the Parent Companys operational strategy to its corporate goals.
The Parent Company fully complied with the externally imposed capital requirements as
at December 31, 2014 and 2013 and no changes were made to its capital base, objectives,
policies and processes.
The Parent Companys primary capital management objectives are to ensure its ability to
continue as a going concern in order to fulfill the Parent Companys mission and vision
and to provide adequate return to shareholders.
The Parent Company manages it capital structure in light of changes in the economic
conditions and the risk characteristics of its activities. The Parent Company takes into
consideration future capital requirements, capital deficiency, profitability, and projected
operating cash flows, expenditures and investment opportunities. No changes were made
in the objectives, policies and processes as at December 31, 2014 and 2013.
- 41 -
MOS Requirements
Under the Code, an insurance company doing business in the Philippines shall at all
times maintain the minimum paid-up capital and net worth requirements as prescribed by
the Commissioner.
The final amount of the MOS can be determined only after the accounts of the Parent
Company have been examined by the IC, specifically as to admitted and non-admitted
assets as defined in the Code.
If the insurance company failed to meet the minimum required MOS, the IC is authorized
to suspend or revoke all certificates of authority granted to such company, officers,
agents and no new business shall be transacted until its authority is restored by the IC.
As at December 31, 2014 and 2013, the estimated amounts of non-admitted assets, as
defined under the Code, which are included in the accompanying Parent Companys
separate statements of financial position, are as follow:
2014
P79,778,611
505,788,804
P585,567,415
Property and equipment - net

Loans and receivables and other assets
2013
P82,178,168
226,029,469
P308,207,637
The Parent Company complied with the externally imposed MOS requirements during
the reported financial periods.
Net Worth Requirements
Under the Code, every insurance company doing business in the Philippines needs to
comply with the following net worth requirements:
Net worth
P250,000,000
550,000,000
900,000,000
1,300,000,000
Compliance Date
On or before June 30, 2013
On or before December 31, 2016
As at December 31, 2014 and 2013, the Parent Company has complied with the net worth
requirements.
RBC Requirements
Insurance Memorandum Circular (IMC) No. 6-2006 provides for the RBC framework for
the life insurance industry to establish the required amounts of capital to be maintained
by the companies in relation to their investments and insurance risks. Every life insurance
company is required annually to maintain a minimum RBC ratio of one hundred (100%)
and not fail the trend test. Failure to meet the minimum RBC ratio shall subject the
insurance company to corresponding regulatory intervention which has been defined at
various levels.
The RBC ratio shall be calculated as net worth divided by the RBC requirement. Net
worth shall include an insurance companys paid-up capital, contributed and contingency
surplus and unassigned surplus. Revaluation and fluctuation reserve accounts shall form
part of net worth only to the extent authorized by the IC. RBC requirement shall be
computed based on the formula provided in the Circular and shall include asset default
risk, insurance pricing risk, interest rate risk and general business risk.
- 42 -
The following information shows the ratios determined by the Parent Company based on
its calculations:
2014
P7,837,495,533
4,375,364,747
179.13%
Net worth
RBC requirement
RBC Ratio
2013
P7,590,974,408
4,076,244,597
186.22%
The final amount of the RBC ratio can be determined only after the accounts of the
Parent Company have been examined by the IC specifically as to admitted and nonadmitted assets as defined under the same Code. As at December 31, 2014 and 2013, the
Parent Company has complied with the minimum RBC ratio.
7. Fair Value Measurements and Disclosures

The fair value of the following financial assets and financial liabilities approximates their
carrying amount at end of each reporting period due to their short term nature:
Cash and cash equivalents;

Insurance receivables;
Accrued income;
Reinsurance assets;
Insurance contract liabilities except for legal policy reserves;
Reserve for policyholders dividends;
Premium deposit funds excluding amounts received which will be applied to
premiums due;
Insurance payables; and
Accounts payable and accrued expenses.
The recurring fair values of financial assets at FVPL and AFS financial assets are
determined by reference to quoted market prices at the close of business on the reporting
dates.
Fair Value Hierarchy
The table below presents financial instruments carried at fair value by valuation method
as at December 31, 2014 and 2013. The different levels have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or

liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e., as prices) or indirectly
(i.e., derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
- 43 -
Level 1
Financial Assets
Financial Assets at FVPL
Equity securities
Government Debt
securities
Golf club shares
AFS Financial Assets
Equity securities at fair
value
Debt securities
Nonfinancial Assets
P -
P -
P738,050,663
400,504,351
5,978,750
400,504,351
5,978,750
7,850,364,782
626,982,228
7,850,364,782
626,982,228
9,621,880,774
9,621,880,774
823,155,820
823,155,820
P823,155,820
P -
P10,445,036,594
Level 1
Nonfinancial Assets
Total
P738,050,663
P9,621,880,774
Financial Assets
Financial Assets at FVPL
Equity securities
Government Debt
securities
Golf club shares
AFS Financial Assets
Equity securities at fair
value
Debt securities
December 31, 2014

Level 2
Level 3
December 31, 2013

Level 2
Level 3
Total
P587,475,514
P -
P -
P587,475,514
161,872,186
5,978,750
161,872,186
5,978,750
7,415,498,384
353,873,246
7,415,498,384
353,873,246
8,524,698,080
8,524,698,080
286,873,686
286,873,686
P286,873,686
P -
P8,811,571,766
P8,524,698,080
As at December 31, 2014 and 2013, the Parent Company has AFS equity securities
measured at cost amounting to P573.56 million and P572.82 million, respectively.
There has been no transfer between levels in 2014 and 2013.
Fair value of nonfinancial asset under Level 2 is determined using Market Data Approach
(see Note 17).
8. Cash and Cash Equivalents

This account consists of:
2014
P1,089,013,364
385,687,314
8,095,904
P1,482,796,582
Short-term placements
Cash in banks
Cash on hand
- 44 -
2013
P1,411,800,397
379,763,889
7,742,041
P1,799,306,327
Cash in banks earn interest at prevailing interest rates. Cash equivalents are made for
various periods depending on the immediate cash requirements of the Parent Company
and earn interest ranging from 1.00% to 2.13% and from 0.50% to 4.13% in 2014 and
2013, respectively.
Interest income earned in 2014 and 2013 amounted to P42.07 million and P37.61 million,
respectively (see Note 28).
9. Insurance Receivables
2014
P395,616,865
50,170,205
445,787,070
26,633,516
P419,153,554
Premiums due and uncollected

Due from agents
Less allowance for impairment loss
2013
P199,768,790
30,861,867
230,630,657
26,633,516
P203,997,141
There has been no movement in the allowance for impairment losses as at

December 31, 2014 and 2013.
10. Financial Assets at Fair Value through Profit or Loss

2014
P738,050,663
400,504,351
5,978,750
P1,144,533,764
Equity securities
Government debt securities
Golf club shares
2013
P587,475,514
161,872,186
5,978,750
P755,326,450
Fair value gains (losses) on financial assets at FVPL consist of:

Note
Equity securities
Government debt securities
28
2014
P65,017,567
8,947,278
P73,964,845
2013
(P51,507,010)
(15,336,696)
(P66,843,706)
The carrying values of financial assets at FVPL have been determined as follows:
Note
Balance at beginning of year
Additions
Maturities and disposals
Net fair value gain (loss)
Foreign exchange adjustments
Balance at end of year
28
- 45 -
2014
P755,326,450
335,638,453
(21,216,024)
73,964,845
820,040
P1,144,533,764
2013
P717,544,261
118,923,862
(26,621,025)
(66,843,706)
12,323,058
P755,326,450
11. Available-for-Sale Financial Assets

2014
P7,850,364,782
573,552,333
626,982,228
P9,050,899,343
Equity securities at fair value

Equity securities at cost
Debt securities
2013
P7,415,498,384
572,823,208
353,873,246
P8,342,194,838
(a) AFS Equity Securities at Fair Value

As at December 31, 2014 and 2013, AFS unlisted equity securities carried at fair
values consist mainly of the Parent Companys investment in shares of stock of the
following Coconut Industry Investment Fund (CIIF) Oil Mills Companies:
Granexport Manufacturing Corporation (Granex)

Legaspi Oil Company, Inc. (LegOil)
San Pablo Manufacturing Corporation (SPMC)
Southern Luzon Coconut Oil Mills Co., Inc. (SolCom)
The fair values of the total investments in CIIF were determined by taking into
account the redemption price of San Miguel Corporation (SMC) shares, which
comprise 96.72% (over total balance) of CIIFs assets, and DCF approach for other
operating net assets. The CIIF Oil Mills Companies have investments in
fourteen (14) CIIF holding companies which hold shares in SMC. The aggregate
market value of the Parent Companys interest in these SMC shares amounted to
P6.21 billion as at December 31, 2014 and 2013. In addition, the fair values of the
other operating net assets of the CIIF Oil Mills Companies have been determined
using DCF approach. Significant assumptions used include a long-term growth rate
of nil and a discount rate of 12% in 2014 and 2013. DCF computation is based on
latest available figures of CIIF Oil Mills Companies as at December 31, 2014 and
2013.
The assets of the CIIF Oil Mills Companies and the SMC shares are presently
sequestered and are the subject of an ongoing appeal by the Philippine Coconut
Producers Federation with the Supreme Court (SC). The investments of SPMC,
Iligan Coconut Industries, Inc. (Ilicoco) and other CIIF Oils Mills in the 14 CIIF
holding companies and the loans and advances granted by SPMC, Ilicoco and other
CIIF Oil Mills to the 14 CIIF holding companies were used to purchase the shares of
stock in SMC. As at December 31, 2001, the loans and advances granted to the 14
CIIF holding companies were fully collected. These SMC shares were sequestered
by the Presidential Commission of Good Government (PCGG) in May 1986.
The 14 CIIF holding companies, United Coconut Planters Bank (UCPB) and SMC
executed and subsequently implemented in 1991 a compromise agreement and
amicable settlement involving the SMC shares of stock held by the 14 CIIF holding
companies. Notwithstanding the implementation of the compromise agreement and
amicable settlement, all the subject SMC shares of stock remain sequestered by the
PCGG. Certain parties, however, filed before the Sandiganbayan their opposition to
the implementation of the said agreement.
- 46 -
On November 10, 1993, the Republic of the Philippines, acting through the PCGG,
filed before the Sandiganbayan a motion for authority to sell all the 14 CIIF holding
companies shares of stock of SMC. The proceeds of the sale would then be utilized
to pay for the indebtedness of the CIIF holding companies to UCPB and any
remaining balance thereof would be used for urgently needed projects designed for
the benefit of the coconut farmers and pursuant to the intent of the CIIF. The motion
was opposed by certain parties.
On September 27, 1996, the 14 CIIF holding companies and UCPB, as administrator
of the CIIF holding companies and as then creditor of the 14 CIIF holding companies
(the UCPB loan was fully paid by the 14 CIIF holding companies in November
2002), filed a joint motion before the Sandiganbayan and respectfully moved that
they be authorized to sell all the 14 CIIF holding companies SMC class B shares and
to buy an equal number of SMC Class A shares. The motion was denied on
December 12, 1997. On January 7, 1998, the 14 CIIF holding companies and UCPB
filed a motion for reconsideration.
On May 7, 1998, in an en banc resolution, the PCGG lifted the sequestration of the
SMC shares, subject to the approval of the Sandiganbayan. The lifting of the
sequestration on the SMC shares owned by the 14 CIIF holding companies will
enable the CIIF companies to re-deploy their resources in response to the demands of
an ever-changing business environment and to initiate strategic programs aimed at
enhancing the competitiveness of the Philippine coconut industry.
On February 9, 1999, the Sandiganbayan considered the motion dated November 10,
1993 withdrawn without prejudice to whatever actions the parties may take for
revival or resuscitation thereof under such terms which may be appropriate at that
time. On March 12, 1999, certain parties filed a motion for permission to present
evidence in relation to their opposition of said November 10, 1993 motion to sell all
SMC shares.
On November 8, 2000, the President of the Philippines issued Executive Order (EO)
No. 313 creating an irrevocable trust fund to be known as the Coconut Trust Fund to
be managed by a Trust Fund Committee. EO No. 313 also provided that the subject
SMC shares shall form part of the initial capital of the Coconut Trust Fund. For the
purpose of implementing the creation of the Coconut Trust Fund, EO No. 313
directed the 14 CIIF holding companies, acting through Administrator of the coconut
levy fund, to: (a) convey the subject SMC shares to the Trustee; and, (b) sign,
execute and deliver such documents, deed or contracts, under such conditions not
inconsistent with EO No. 313 likewise mandates the PCGG and the Office of the
Solicitor General to lift the sequestration of the subject SMC shares and take all the
necessary steps to implement the purposes and objectives of EO No. 313.
As a first step toward the implementation of EO No. 313, the PCGG adopted
resolutions on November 28, 2000, lifting the sequestration of the subject SMC
shares. On January 10, 2001, a Motion to Withdraw Compliant was filed by the
PCGG before the Sandiganbayan requesting for the exclusion of the subject SMC
shares from Civil Case No. 0033-F and for the cause of action against defendants, the
14 CIIF holding companies, in connection with the said shares to be considered
withdrawn.
- 47 -
As a result of the installation of the new dispensation, on January 30, 2001,

a Manifestation and Motion to Hold in Abeyance Motion to Withdraw Complaint
dated January 10, 2001 was filed before Sandiganbayan requesting to defer action in
the aforementioned Motion until February 25, 2001 or later, for the reason that EO
No. 313 is still undergoing review by the Office of the President for possible
amendment, suspension and revocation.
The Sandiganbayan, in a Motion for Partial Summary Judgment on May 7, 2004,
decided that SPMC and the other CIIF Block of SMC shares of stock totaling
33,133,266 shares in 1983, together with all dividends declared, paid and issued
thereon, as well as any increments thereto arising from, but not limited to, exercise of
pre-emptive rights, are declared owned by the government in trust for all the coconut
farmer and ordered reconveyed to the government.
Certain parties filed a Motion for Reconsideration to such Sandiganbayan decision.
The motion for reconsideration was denied by Sandiganbayan on December 28,
2004.
On March 29, 2005, the 14 CIIF holding companies, as authorized by the PCGG,
exercised their pre-emptive rights first on the SMC Class B shares and thereafter on
the SMC Class A shares of SMCs 105 stock offering to the extent of the cash
dividends held by the 14 CIIF holding companies. The 14 CIIF holding companies
subscribed to 27,952,430 Class B shares and 693,242 Class A shares resulting in total
shareholdings of 307,395,776 Class B shares and 446,476,531 Class A shares.
As at June 30, 2008, the aforementioned case pending with the First Division of the
Sandiganbayan is now awaiting decision.
On July 24, 2009, SMC made an offer to exchange (the Exchange Offer) preferred
shares for its issued and outstanding Class A and Class B common shares, on a onefor-one basis. The peso-denominated nonvoting preferred shares (the Series 1
Preferred Shares) will have an issue price of P75.00 (the Issue Price). The maximum
Series 1 Preferred Shares that could be exchanged in the Exchange Offers is
1,104,000.
The Parent Company and the CIIF Oil Mills Companies chose to participate in the
Exchange Offer. The Parent Company and the CIIF Oil Mills Companies submitted
their applications to exchange in October 2009. The Parent Company and the CIIF
Oil Mills Companies received 751,185 and 753,848,312 Series 1 Preferred Shares,
respectively, in exchange for an equivalent number of common shares.
On December 23, 2009, the Parent Companys BOD approved the Memorandum of
Agreement (MOA) which allowed the Parent Company to account for its investment
in CIIF Oil Mills Companies as investments in associates because despite ownership
of less than twenty percent (20%) interest in the CIIF Oil Mills Companies, the
Parent Company has significant influence by virtue of joint rights with UCPB as
stockholders of the CIIF Oil Mills Companies for their collective benefit. Upon
effectivity of the MOA on January 1, 2010, the CIIF Oil Mills Companies became
associates of the Parent Company. As allowed under PAS 27, the Parent Company
accounted for its investments in CIIF Oil Mills Companies as AFS financial assets
which are carried at fair value in its separate financial statements.
- 48 -
On January 24, 2012, the SC rendered its decision in favor of the government in two
cases involving: (a) the ownership of certain sequestered shares in UCPB and
(b) the ownership over the CIIF Oil Mills, the Fourteen CIIF Holding Companies and
the shares of stock in SMC held by the 14 CIIF Holding Companies, together with all
dividends declared paid and issued thereon as well as any increments thereto arising
from, but not limited to, exercise of pre-emptive rights.
On February 14, 2012, the Philippine Coconut Producers Federation, Inc., et. al.,
filed a Motion for Reconsideration on the decision rendered by the SC. The SC
subsequently rendered a decision on September 4, 2012 which resolves to deny with
finality the aforementioned case for the lack of merit. Further, the court clarifies that
the SMC shares, with all the dividends earnings as well as all increments that may
arise from, are owned by the government to be used for the benefit of all the coconut
farmers and for the development of the coconut industry.
On December 28, 2012, the Parent Company filed a Petition for Declaratory Relief to
seek for an authoritative declaration of its rights and duties as a stockholder of the
CIIF Oil Mills, and 14 CIIF holding companies. Against this petition the Philippine
Government through the PCGG filed with the Supreme Court a petition for, among
others, the issuance of the Temporary Restraining Order (TRO) enjoining the trial
court Judge from proceeding with the hearing of the petition for declaratory relief.
On February 26, 2014, the Supreme Court issued the TRO.
On December 10, 2014, the Supreme Court issued a resolution directing that an entry
of judgment be made for its January 24, 2012 Decision, which ordered the
reconveyance of the CIIF Block of SMC shares to the Government, to be used
exclusively for the benefit of coconut farmers and the development of the local
coconut industry.
As at December 31, 2014, the carrying amount of the Parent Companys investments
in UCPB shares and CIIF Oil Mills shares amounted to P552.34 million and P6.41
billion, respectively.
The Parent Company recognized increase in the fair value of investments in CIIF
amounting to P30.78 million in 2014 from the recognized impairment losses in 2013
amounting to P50.65 million.
(b) AFS Equity Securities at Cost
In 2011, the Parent Company foreclosed its receivables from Archipelago Finance
and Leasing Corporation (Archipelago), an entity under common control, pertaining
to the sales of UCPB shares in 2000 up to 2002 amounting to P351.98 million and
secured by a pledge on 29,290,224 shares sold. Consequently, the Companys
investments in UCPB shares increased from 100,000,000 shares as at December 31,
2010 valued at P100.00 million to 129,290,224 shares as at December 31, 2011
valued at P451.98 million. These stocks are nonparticipating, nonvoting preferred
shares convertible to common shares of UCPB with P1 par value, an affiliated local
commercial bank at the option of the holder. These shares are entitled to cumulative
dividends of 14% per annum.
- 49 -
A substantial portion of the outstanding shares of stock of UCPB remains

sequestered as a result of the sequestration orders previously issued by the PCGG on
June 26, 1986. In 2012, the Parent Company redeemed the UCPB shares amounting
to P100.00 million from UCPB General Insurance Company, Inc. (UCPB GEN), a
wholly-owned subsidiary. The Parent Company have investments in UCPB shares
amounting to a total of P552.34 million as at December 31, 2014 and 2013.
The issue of ownership of the sequestered shares has been the subject of ongoing
court proceeding with SC and Sandiganbayan. However, on December 14, 2001, the
SC ruled that the coconut levy funds, from which the funds to buy UCPB shares were
occurred, were prima facie public funds. Further, on July 2, 2002, the SC directed
the Sandiganbayan First Division to resolve with all deliberate speed and not later
than six (6) months such ownership issue.
The Sandiganbayan, in its decision dated July 11, 2003, ruled and declared that
ownership of 72.20% in UCPB legally belongs to the government. Subsequently, the
SC rendered a decision on January 25, 2012 supporting the decision of the
Sandiganbayan on July 11, 2003.
On February 14, 2012, the Philippine Coconut Producers Federation, Inc., et. al.,
filed a Motion for Reconsideration on the decision rendered by the SC. The SC
subsequently rendered a decision on September 4, 2012 which resolves to deny with
finality the said Motion for Reconsideration for lack of merit.
The Petition for Declaratory Relief by the Parent Company on December 28, 2012
also mentioned its ownership over these UCPB shares.
Update on UCPB Rehabilitation Plan
On March 29, 2004, UCPB requested certain concessions for the duration of the
rehabilitation period of ten (10) years or until such time that UCPB is able to comply
with the regulatory requirements, whichever is earlier. The Bangko Sentral ng
Pilipinas (BSP), in its reply date January 10, 2005:
Approved the 10-year Business/Rehabilitation Plan of UCPB;
Granted temporary relief by reducing the risk-weighted capital ratio from 10% to
8% for a period of three (3) years up to 2007 or until such time that UCPB is able
to comply with the required 10%, whichever comes earlier;
Allowed the staggered booking of P14.00 billion required valuation reserves

based on the fixed rate of 5% each year for the first three (3) years, ten percent
(10%) each year for the next four (4) years and fifteen percent (15%) each year
for the remaining three (3) years; and
Required UCPB to seek prior BSP approval for the merger of United Savings
Bank and UCPB Rural bank. The merger had been effected on December 29,
2005.
- 50 -
On May 15, 2008, the Philippine Depository Insurance Corporation (PDIC) Board, in
its Resolution No. 2008-05-073, approved the following:
1. Proposed rehabilitation scheme to address the capital deficiency of the UCPB
pending resolution of ownership issues, including the following:
a. Capital infusion to meet capital requirements via conversion of PDICs
P12.00 billion Financial Assistance into Capital Notes eligible as Interim
Tier 1 capital;
b. National Governments minimum deposit placement of P25.00 billion for at
least ten (10) years to be invested in higher yielding government securities
(target net yield of 6% per annum or P1.50 billion net interest per annum);
c. BSPs grant of regulatory relief; and
d. UCPBs implementation of the business plans which includes operational
and income enhancements and cost control management.
2. PDICs conversion of outstanding P12.00 billion financial assistance into Capital
Notes subject to the fulfillment by the concerned parties of their respective
obligations to implement the other components of foregoing rehabilitation
scheme, Monetary Board reaffirmation of the continuing systemic risk to the
banking system that would result from the untimely closure of the UCPB, and
amendment to the terms and conditions of the 2003 FAA.
3. General features of the Capital Notes to be subscribed to by the PDIC, the final
features of Capital Notes and Subscription Agreement between PDIC and UCPB
subject to subsequent approval by the PDIC Board as follows:
Dividend Rate - Dividend rate of 12% per annum shall be noncumulative,
payable once UCPB has sufficient profits/retained earnings and meets capital
adequacy and liquidity thresholds after dividend payment.
Call Option - Option of UCPB to call on the Notes anytime after at least sixty
(60) months from date of issue upon fulfillment of capital adequacy/liquidity
thresholds. Upon its call on the Notes, UCPB shall pay dividends to the PDIC as
a Noteholder at the rate of fourteen percent (14%) per annum (gross) computed
from the issuance of the Notes up to the date of call option.
Assignability Feature - The PDIC may assign the notes anytime by giving a
notice in writing to the Issuer.
Conversion Right - The Capital Notes shall be convertible to UCPBs preferred
shares and further convertible to common shares at any time at the option of
PDIC. Should PDIC be restrained or in any manner or for any reason be enjoined
from fully or partially exercising such right or in the event PDIC exercise his
right to convert the Capital Notes to UCPB shares and UCPB shall be unable, for
any reason whatsoever, then the UCPB shall be obliged immediately to redeem
to Capital Notes with thirty (30) days from notice to do so, then the Capital Notes
shall automatically be transformed into a P12.00 billion loan in favor of PDIC.
Conversion Price - The conversion price shall be fixed at the time of subscription
of the Interim Tier 1 Capital Notes. The number of common/preferred shares to
be issued upon conversion of the Notes be determined by dividing the principal
amount of the Notes plus any accrued interest thereon, by the conversion price.
The conversion price shall be subject to adjustment to allow PDIC to preserve its
ownership stake.
- 51 -
The Monetary Board, in its Resolution No. 590 dated May 15, 2008, decided to:
1. Approve the Ten-Year Rehabilitation/Business Plan (2008-2017) of UCPB and grant
to the UCPB the authority to issue P12.0 billion Capital Notes to PDIC which will
qualify as Interim Tier 1 Capital, provided that:
i.
The Tier 1 Capital Notes to be issued meet the minimum features under Circular
No. 595 dated January 11, 2008;
ii. UCPBs Articles of Incorporation shall be amended to:
Increase its authorized capital of P3.25 billion to an amount that will cover
the amount of the Capital Notes; and
Remove the Ownership limitation in UCPB which is 1% of the issued and
outstanding preferred and common shares for a stockholder as at
December 31, 1979.
2. Grant to UCPB following concessions:
i. Authority to accept deposit from the National Government (NG), Local
Government Units and Government-Owned and Controlled Corporations with
the ceiling of P5.90 billion increased by the amount that the NG will deposit with
UCPB;
ii. Consider the government securities purchased out of the P30.00 billion deposit of
the NG as alternative/eligible compliance with the liquidity reserves and liquidity
floor requirement;
iii. Stagger the booking of the unbooked valuation reserves and deferred charges
aggregating P27.90 billion consistent with UCPBs approved 10-Year Business/
Rehabilitation Plan: Provided, that subsequent valuation reserves to be required
in excess of the P27.90 billion shall be immediately booked and no dividend
shall be declared while the concession is in effect;
iv. Waiver of the monetary penalties incurred for the following:
1. reserve deficiencies for the period January 1, 1999 to September 11, 2003
arising from the nontrust activities of the Trust Banking Division with
penalties amounting to P3.40 billion;
2. delay in the implementation of the Anti-Money Laundering System by
October 14, 2007 as required under Circular No. 495 dated September 20,
2005 as amended by Circular No. 527 dated April 28, 2006, with penalty at
P15,000 per day of delay;
3. violation of Section X602 of the Manual of Regulations for Banks (MORB)
for engaging in derivatives activities without prior BSP approval at P15,000
penalty per banking day estimated at P3.60 million as at February 29, 2008;
4. booking of Day 1 gain on its financial assistance (FA) from the PDIC in
violation of Circular No. 572 dated June 21, 2007 with estimated penalty of
P1.80 million; and
5. delayed submission of various reports with penalties aggregating P1.30
million.
v. Continued access to the BSP Rediscounting Facility, subject to a rediscount
ceiling of P1.50 billion.
Investments in preferred shares include the Parent Companys investment in SMC
Series 1 Preferred Shares which have the following features:
a. Dividends shall be at a fixed rate of eight percent (8.00%) per annum. The dividend
rate shall be at the end of the fifth year after the date of issue to the higher of the
dividend rate or the 10-year PDST-F rate on the date corresponding to the end of the
fifth year from the Issue Date plus spread of three percent (3.00%).
- 52 -
b. The holder shall not be entitled to any participation or share in the retained earnings
remaining after dividend payment shall have been made.
c. SMC may redeem the preferred shares on the third anniversary from the Issue Date
or on any dividend payment date, in whole or in part, at a redemption price equal to
the Issue Price plus accrued and unpaid dividends.
d. The holder shall not be entitled to vote.
e. The holder shall have no pre-emptive right to any issue or disposition of any share of
any class of SMC.
f. There shall be preference in payment in the event of liquidation of SMC.
The carrying values of AFS financial assets have been determined as follows:
2014
P8,342,194,838
1,738,418,230
(1,107,959,708)
72,551,714
5,694,269
P9,050,899,343

Additions
Maturities and disposals
Reserve for fluctuation on AFS
Foreign exchange adjustments
2013
P8,453,594,049
2,182,976,319
(2,009,498,422)
(301,247,689)
16,370,581
P8,342,194,838
As at December 31, 2014 and 2013, government securities with a total value of
P93.88 million are deposited with the IC in accordance with the provision of the Code as
security for the benefit of policyholders and creditors of the Parent Company.
The rollforward analysis of the reserve for fluctuation on AFS financial assets is as
follows:

Fair value gain (loss)
Realized gain transferred to profit or loss
2014
P5,307,349,442
202,703,261
(130,151,547)
P5,379,901,156
2013
P5,608,597,131
(293,608,912)
(7,638,777)
P5,307,349,442
2014
P3,154,734,485
2,454,634,764
462,901,958
2013
P2,903,629,325
1,905,657,938
516,760,382
497,143,031
370,098,469
296,633,525
158,709,874
35,214,793
100,719,723
7,530,790,622
(396,700,675)
7,134,089,947
548,416,317
P7,682,506,264
414,212,773
369,758,297
247,909,477
66,766,812
33,096,406
75,039,438
6,532,830,848
(446,326,785)
6,086,504,063
549,328,568
P6,635,832,631
12. Loans and Receivables

Note
Note receivable
Mortgage loans
Investment accounts receivable
Healthcare Management Organization
(HMO) billback
Installment contracts receivable
Claims receivable - farmers
Collateral loans
Advances to officers and employees
Others
37
Allowance for impairment losses

Policy loans
- 53 -
Note receivable refer to long-term promissory notes without collateral and earns interest
at prevailing market rate plus two percent (2%) add-on or twelve percent (12%),
whichever is higher.
Mortgage loans receivable pertain to housing loans secured by the property being
financed by the loans and collectible in monthly amortizations. Interest rates range from
five percent (5%) to twenty four percent (24%) in 2014 and 2013, with terms ranging
from five (5) to ten (10) years.
Investment accounts receivable pertain mainly to receivables from brokers relating to the
sale of investments and dividends receivable on the Parent Companys investments in
subsidiaries and associates.
HMO billback is due from Healthcare cardholders under the Third Party Administration
accounts or auto bill back, wherein the Parent Company initially pays for the medical
expenses and subsequently bills the same to the cardholders plus service fee of seven
percent (7%) and network access fee.
Installment contracts receivable pertain to the outstanding receivable on foreclosed
properties sold to third parties. The interest is based on market rate or twelve percent
(12%), whichever is higher with terms ranging from five (5) to fifteen (15) years.
Collateral loans are loans collectible in monthly amortizations over a period of one (1) to
five (5) years, including interest of three percent (3%) to twelve percent (12%), secured
by a chattel mortgage.
Advances to officers and employees are collected thru payroll deductions or thru expense
liquidation.
Policy loans pertain to loans issued to policyholders. The loans are issued with collateral
of the cash surrender value of the policyholders insurance policies. Interest rates charged
are ten percent (10%) for peso and eight percent (8%) for dollar denominated policies.
The carrying amount of loans and receivables approximate its fair value as at
December 31, 2014 and 2013.
- 54 -
The rollforward analyses of allowance for impairment losses on loans and receivables are as follow:
2014
HMO Billback
Claims
Receivable farmers

Provisions during the year
Write-off during the year
P253,072,388
33,609,406
(103,788,907)
P15,357,785
-
P48,665,887
-
P2,349,212
-
P15,582,780
-
P96,261,326
20,553,392
-
P15,037,407
-
P446,326,785
54,162,798
(103,788,907
P182,892,887
P15,357,785
P48,665,887
P2,349,212
P15,582,780
P116,814,718
P15,037,407
P396,700,676
Specific assessment
Collective assessment
182,892,887
-
15,357,785
-
48,665,887
-
P2,349,212
15,582,780
116,814,718
-
15,037,407
-
378,768,684
17,931,992
Total
P182,892,887
P15,357,785
P48,665,887
P2,349,212
P15,582,780
P116,814,718
P15,037,407
P396,700,676
Gross amount of receivables, individually

determined to be impaired
P182,892,887
P15,357,785
P48,665,887
P116,814,718
P15,037,407
P378,768,684
HMO Billback
Claims
Receivable farmers
Total
Notes
Receivable
Mortgage
Loans
Collateral
Loans
Advances to
Officers and
Employees
P -
Investment
Accounts
Receivables
P -
Total
2013
Notes
Receivable
Mortgage
Loans
Collateral
Loans
Advances to
Officers and
Employees
Investment
Accounts
Receivables

Provisions during the year
Write-off during the year
P218,334,168
35,668,146
(929,926)
P15,357,785
-
P48,665,887
-
P2,349,212
-
P21,382,780
(5,800,000)
P100,145,436
10,559,870
(14,443,980)
P15,037,407
-
P421,272,675
46,228,016
(21,173,906)
P253,072,388
P15,357,785
P48,665,887
P2,349,212
P15,582,780
P96,261,326
P15,037,407
P446,326,785
Specific assessment
Collective assessment
P187,410,664
65,661,724
P15,357,785
-
P48,665,887
-
P1,334,373
1,014,839
P 15,582,780
P96,261,326
-
P 15,037,407
P349,030,035
97,296,750
Total
P253,072,388
P15,357,785
P48,665,887
P2,349,212
P15,582,780
P96,261,326
P15,037,407
P446,326,785
Gross amount of receivables, individually

determined to be impaired
P187,410,664
P15,357,785
P48,665,887
P1,334,373
- 55 -
P -
P96,261,326
P -
P349,030,035
In 2014 and 2013, the Parent Company recognized provision for impairment losses
amounting to P54.16 million and P46.22 million, respectively, based on the Parent
Companys assessment of the individual balances of different receivables.
In 2014 and 2013, the Parent Company entered into agreements with various parties
whereby the Parent Company sold its loans and receivables without recourse amounting
to P8.37 million and P382.85 million at a gain of P1.63 million and P68.92 million,
13. Accrued Income

Interest receivable
Less allowance for impairment losses
Rent receivable
Dividend receivable
2014
P79,688,733
18,011,323
61,677,410
99,104
12,550
P61,789,064
2013
P79,731,978
18,011,323
61,720,655
458,050
25,800
P62,204,505
Interest receivable includes accrued interest arising from short-term investments, AFS
debt securities, debt securities at FVPL and loans and receivables with interest rates
ranging from 1.00% to 2.13%, from 3.25% to 9.13%, from 2.13% to 7.75% and from
5.25% to 30.53%, respectively, in 2014, and 1.00% to 4.00%, 3.25% to 9.13%, 3.25% to
8.00% and 3.00% to 24.00%, respectively, in 2013.
There were no movements in the allowance for impairment losses as at December 31,
2014 and 2013.
14. Reinsurance Assets

Reinsurance recoverable on unpaid losses

Reinsurers share on legal policy reserves
2014
P12,545,965
32,194,756
P44,740,721
2013
P22,956,662
5,742,021
P28,698,683
The movements of reinsurance recoverable on unpaid losses are as follow:

2014
P22,956,662
18,405,968
(28,816,665)
P12,545,965

Claims incurred during the year
Claims paid during the year
- 56 -
2013
P14,786,401
26,236,590
(18,066,329)
P22,956,662
The movements of reinsurers share on legal policy reserves are as follow:

Premiums received
Liability released for payments of death,
maturity and surrender benefits and claims
2014
P5,742,021
535,674,436
2013
P5,479,620
49,860,440
509,221,701
P32,194,756
49,598,039
P5,742,021
2014
2013
P651,794,875
420,442,203
13,983,155
P651,794,875
420,442,203
13,983,155
12,500,000
10,000,000
2,319,785
13,875,000
12,500,000
10,000,000
2,319,785
13,875,000
4,000,000
P1,128,915,018
4,000,000
P1,128,915,018
2014
P1,128,915,018
P1,128,915,018
2013
P1,028,915,018
100,000,000
P1,128,915,018
15. Investments in Subsidiaries and Associate

Subsidiaries
UCPB GEN
Cocoplans, Inc. (Cocoplans)
Ultra Security Services, Inc (Ultra)
Cocolife Asset Management Company, Inc.
(CAMCI)
Healthassist, Inc. (Healthassist)
New Ultra Security Services, Inc. (New Ultra)
Archipelago Motors Corporation (AMC)
Associate
Direct Link Insurance Agency, Inc. (Direct Link)
The movements in this account are as follow:

Additional investments in UCPB GEN
In 2013, the Parent Company acquired an additional 100,000,000 shares of common

stocks of UCPB GEN worth P1.00 per share.
The Parent Companys percentages of ownership in its investees are as follow:
Investee
Subsidiaries
UCPB GEN
Cocoplans
CAMCI
Healthassist
New ultra
Ultra
AMC
Associate
Direct link
- 57 -
2014
2013
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
54.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
54.00%
45.00%
45.00%
The above investees are incorporated in the Philippines.

The key financial information of the subsidiaries and associates are as follow:
UCPB GEN
Total assets
Total liabilities
Net assets
Revenues
Net income (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
P5,931,651,344
4,968,387,574
963,263,770
1,697,041,749
75,505,339
(34,256,313)
41,249,026
Cocoplans*
Ultra*
P1,987,987,016 P39,053,249
1,933,861,763
14,365,229
54,125,253
24,688,020
228,781,261
28,988,488
14,817,919
6,106,344
(20,225,860)
(5,407,941)
6,106,344
2014
CAMCI
P37,235,954
17,043,487
20,192,467
48,127,169
22,413,858
22,413,858
Healthassist* New Ultra*

P16,472,902
195,802
16,277,100
6,733,988
306,567
306,567
P -
AMC*
P11,736,205
950,789
10,785,416
12,500,850
3,931,565
3,931,565
Direct Link*
P46,089,018
35,636,130
10,452,888
6,338,300
979,213
979,213
*Unaudited
UCPB GEN
Total assets
Total liabilities
Net assets
Revenues
Net income (loss)
Other comprehensive income (loss)
Total comprehensive income (loss)
P8,314,965,055
7,391,361,675
923,603,380
1,499,738,101
8,206,497
(18,274,649)
(10,068,152)
Cocoplans*
P2,112,290,866
2,012,591,016
99,699,850
285,655,640
20,380,258
(8,364,700)
12,015,558
Ultra*
P46,091,348
14,553,297
31,538,051
190,565,000
11,538,000
11,538,000
2013
CAMCI
P37,154,114
14,375,505
22,778,609
49,973,678
21,096,732
21,096,732
Healthassist*
New Ultra*
P34,396,598 P4,986,118
6,054,351 2,535,835
28,342,247 2,450,283
44,824,442
15,757,980
(28,070)
15,757,980
(28,070)
AMC*
P20,818,253
5,676,399
15,141,854
27,572,583
(2,538,977)
(22,791)
(2,561,768)
Direct Link*
P42,818,298
33,408,744
9,409,554
6,069,686
1,012,565
1,012,565
*Unaudited
16. Real Estate Inventories

2014
P34,561,536
4,131,600
(6,875,000)
P31,818,136

Additions
Disposals
2013
P77,718,036
(43,156,500)
P34,561,536
In 2014 and 2013, the Parent Company sold columbary units with a cost of
P6.88 million and P43.16 million, respectively. Realized gain, part of Other income in
profit or loss, amounted to P6.88 million and P2.38 million in 2014 and 2013,
respectively.
As at December 31, 2014 and 2013, the NRV of these inventories amounted to P72.36
million and P116.95 million, respectively.
- 58 -
17. Investment Properties

2014
Buildings and
Land Improvements
Cost
Additions
Disposals
P477,632,124
26,115,631
(18,308,448)
485,439,307
Accumulated depreciation
Depreciation
Net book value
Cost
Additions
Disposals
P528,682,165
107,709,846
(18,308,448)
618,083,563
32,103,772
1,995,826
34,099,598
32,103,772
1,995,826
34,099,598
P485,439,307
P98,544,658
P583,983,965
Land
2013
Buildings and
Improvements
Total
P482,818,352
101,906,303
(107,092,531)
477,632,124
Accumulated depreciation
Depreciation
Net book value
P51,050,041
81,594,215
132,644,256
Total
P477,632,124
P49,121,655
1,928,386
51,050,041
P531,940,007
103,834,689
(107,092,531)
528,682,165
30,107,946
1,995,826
32,103,772
30,107,946
1,995,826
32,103,772
P18,946,269
P496,578,393
As at December 31, 2014 and 2013, the estimated fair value of these investment
properties amounted to P821.16 million and P922.54 million, respectively.
The fair values of investment properties were arrived at using the Market Data Approach.
Under this approach, the values of the properties are based on sale and listings of
comparable properties registered in the vicinity. It requires the establishment of
comparable properties by reducing reasonable comparative sales and listings to a
common deominator and adjustments of the differences between the subject properties
and those actual sales and listings regarded as comparables. The comparison was
premised on the factors of location, characteristics of the lot, time element, quality and
prospective use.
The fair value measurement for the investment properties has been categorized as a
Level 2 fair value. The Parent Company engaged accredited independent appraisers to
determine the fair value of its investment properties. Valuations were derived on the basis
of recent sales of similar properties in the same areas as the Parent Companys
investment properties and taking into account the economic conditions prevailing at the
time the valuations were made.
- 59 -
In 2014 and 2013, the Parent Company sold investment properties with a carrying value
of P18.31million and P107.09 million, respectively. Gain (loss) on sale of investment
properties which forms part of Investments income in profit or loss amounted to loss
on sale of P1.42 million and gain on sale of P12.08 million in 2014 and 2013,
Rental income in 2014 and 2013 arising from investment properties amounted to
P8.47 million and P6.74 million, respectively (see Note 28), which are included in
Investments income in profit or loss. Operating expenses, including depreciation
expense, arising from these investment properties amounted to P3.82 million and
P5.58 million in 2014 and 2013, respectively.
18. Property and Equipment

2014
Land
Cost
Additions
Disposals
Accumulated Depreciation
Depreciation during the year
Disposals
Net Book Value
Buildings and
Leasehold
Improvements
Transportation
Equipment
Office
Furniture,
Fixtures and
Equipment
Total
P38,000,000
-
P205,696,665
6,549,269
(4,182,262)
P59,032,178
10,302,850
(7,024,259)
P183,724,047
10,243,431
(7,917,257)
P486,452,890
27,095,550
(19,123,778)
38,000,000
208,063,672
62,310,769
186,050,221
494,424,662
156,994,235
13,344,519
(4,020,063)
29,095,250
9,609,425
(3,292,001)
163,466,213
4,368,880
(7,843,889)
349,555,698
27,322,824
(15,155,953)
P38,000,000
166,318,691
35,412,674
159,991,204
361,722,569
P41,744,981
P26,898,095
P26,059,017
P132,702,093
Office
Furniture,
Fixtures and
Equipment
Total
2013
Land
Cost
Additions
Disposals
Buildings and
Leasehold
Improvements
Transportation
Equipment
P38,000,000
-
P189,024,270
22,690,210
(6,017,815)
P56,523,131
10,848,240
(8,339,193)
P179,364,357
7,024,338
(2,664,648)
P462,911,758
40,562,788
(17,021,656)
38,000,000
205,696,665
59,032,178
183,724,047
486,452,890
Accumulated Depreciation
Depreciation during the year
Disposals
152,468,013
10,295,563
(5,769,341)
25,930,940
7,201,478
(4,037,168)
159,933,486
6,053,161
(2,520,434)
338,332,439
23,550,202
(12,326,943)
156,994,235
29,095,250
163,466,213
349,555,698
P48,702,430
P29,936,928
P20,257,834
P136,897,192
Net Book Value
P38,000,000
- 60 -
19. Intangible Assets

2014
2013
Cost
Additions
P127,285,935
5,189,000
132,474,935
P121,095,437
6,190,498
127,285,935
Accumulated Amortization
Amortization
115,593,829
2,813,525
118,407,354
112,368,451
3,225,378
115,593,829
Net Book Value
P14,067,581
P11,692,106
This account consists of computer software acquired from 2009 to 2014 were the
remaining useful life ranges from one (1) to five (5) years as at December 31, 2014 and
2013.
Amortization expenses which forms part of General and administrative expenses,
amounted to P2.81 million and P3.23 million in 2014 and 2013, respectively.
20. Other Assets

2014
P80,061,363
51,521,391
19,762,507
18,107,879
7,937,761
7,520,387
2,200,262
2,585,947
P189,697,497
BIR tax credits

Refundable deposits
Lease and leasehold deposits
Deferred charges
Prepaid expense
Contingency fund pool
Laboratory supplies inventory
Other assets
2013
P55,357,105
8,645,060
18,144,841
2,981,075
1,149,651
13,154,190
1,997,825
2,386,996
P103,816,743
21. Insurance Contract Liabilities

2013
2014
P9,330,121,158 P8,119,101,483
946,393,008
1,037,681,631
P10,367,802,789 P9,065,494,491
Legal policy reserves

Policy and contract claims
- 61 -
The movements in legal policy reserves are as follow:

Premiums received
Liability released for payments of death,
maturity and surrender benefits and claims
Fees deducted
Accretion of investment income or change
in unit prices
Adjustments due to change in mortality
and morbidity
Others
2014
P8,119,101,483
3,615,798,410
2013
P6,676,780,541
3,367,156,263
(2,997,985,013)
(3,870,885)
(2,400,312,104)
(2,045,054)
536,334,459
40,666,757
20,075,947
P9,330,121,158
482,318,280
(4,796,443)
P8,119,101,483
The movements in policy and contract claims are as follow:

2014
P946,393,008
1,903,331,231
(1,812,042,608)
P1,037,681,631

Arising during the year
Paid during the year
2013
P823,796,338
1,532,150,195
(1,409,553,525)
P946,393,008
As at December 31, 2014 and 2013, assets held to cover unit-linked liabilities amounting
to P2.18 billion and P1.64 billion, respectively, are held in the Parent Companys
separately manage funds, namely, Peso Fixed Income and Growth Fund, Peso Fixed
Income Fund, Peso Equity and Dollar Bond Fund (see Note 36).
On October 30, 2014, the Insurance Commission released Circular Letter No. 2014-42-A,
Valuation standards for life insurance policy reserves, requiring all life insurance
companies to calculate the reserves for traditional life insurance policies using the gross
premium valuation.
The Parent Company is assessing the potential impact on its financial statements
resulting from the application of the new valuation standards for life insurance policy
reserves.
22. Reserve for Policyholders Dividends
2014
P188,309,755
9,321,371
P197,631,126

Net increase during the year
- 62 -
2013
P181,421,861
6,887,894
P188,309,755
23. Premium Deposit Funds

2014
P433,800,267
59,555,161
89,638,065
79,193,087
30,465,648
P692,652,228
Premium deposits
HMO claims deposit
Fund builder rider
Premium deposit fund
HMO guarantee deposits
2013
P387,649,184
115,013,242
82,420,017
79,439,790
31,495,380
P696,017,613
24. Insurance Payables

2014
P29,548,393
525,941,470
(375,916,253)
(93,981)
P179,479,629

Arising during the year
Paid during the year
Foreign exchange adjustment
2013
P35,768,751
22,233,749
(28,387,625)
(66,482)
P29,548,393
Insurance payable represents premiums due to reinsurers which are due and demandable.
25. Accounts Payable and Other Liabilities

These accounts consist of:
Accounts Payable and Accrued Expenses

Investment accounts payable
Accounts payable
Accrued incentives and bonuses
Loading payables
Supplementary contracts without life contingency
Agents fidelity and annuity reserves
Other Liabilities
Deferred credits
Taxes payable
Others
2014
2013
P383,244,017
649,427,893
194,455,169
88,552,318
49,745,373
2,986,804
P1,368,411,574
P572,408,691
410,626,735
104,583,593
54,863,520
51,128,381
2,822,601
P1,196,433,521
P19,756,781
13,485,997
865,978
P34,108,756
P8,098,574
24,609,690
P32,708,264
Investments accounts payable represent funds received from both related parties and third
parties to partially fund its loan financing facility. These amounts earn interest of 8.50%
in 2014 and 2013, respectively. Total interest expense incurred on these loans amounted
to P203.31 million in 2014 and P139.15 million in 2013.
- 63 -
Accounts payable consist mainly of unpaid commissions, supplies, utilities, postal and
communication, professional fees, repairs and maintenance, security services that are due
and demandable.
Accrued incentives and bonuses represent amounts payable to employees computed
based on current salary and length of service. These amounts are due to be paid within
one (1) year after the reporting date.
Loading payable refers to the portion of gross premium due and uncollected which is
expected to be paid out in the form of commission, service fees, overrides and taxes.
Supplementary contracts without life contingency represent claims which are held by the
Parent Company and are paid in monthly installments in the form of pension benefits.
These claims earn interest of six percent (6.00%) annually.
Agents fidelity and annuity reserves represent amounts withheld from agents which are
refunded upon resignation or termination.
Deferred credits represent reservation deposits which are refunded upon consumption of
sale of investment properties and real estate inventories.
Taxes payable consist mainly of VAT payable, withholding taxes from the employees
compensation and purchases from suppliers which were subsequently remitted within one
month after the reporting date.
Others under Other liabilities in the separate statements of financial position are noninterest bearing liability and are due and demandable.
26. Equity
2014
Capital stock - P1 par value
Authorized - 1,000,000,000 shares
Issued and outstanding - 550,000,000
shares
2013
P1,000,000,000
P1,000,000,000
550,000,000
550,000,000
Under the Philippine Corporation Code (PCC), stock corporations are prohibited from
retaining surplus profits in excess of one hundred percent (100%) of its paid-up capital,
except when justified by any other reasons mentioned in the PCC.
As at December 31, 2014, the Parent Companys retained earnings of P2.58 billion is in
excess of its paid-up capital of P550.00 million. The Parent Company plans to use the
excess retained earnings is dependent on the impact of the following to the Parent
Company:
a. ICs directive to calculate the reserves for traditional life insurance policies using the
gross premium valuation (see Note 21); and
b. Amendments currently being implemented by IC with respect to the risk based
capital requirement.
- 64 -
27. Net Insurance Premiums

Gross premiums on insurance contracts:
Direct:
Group life insurance
Accident and health
Ordinary life insurance
Unit-linked
Assumed group life insurance
Total life insurance contract premiums
revenue
2014
2013
P1,548,708,098
1,507,951,912
1,102,557,860
46,009,986
4,205,227,856
120,594,474
P1,610,816,449
926,896,927
891,593,618
53,754,840
3,483,061,834
130,808,302
P4,325,822,330
P3,613,870,136
Reinsurance premiums ceded:

Accident and health
Total reinsurers share of life insurance
contract premium revenue
2014
P150,755,389
7,891,701
367,294,380
2013
P30,940,741
9,662,121
-
P525,941,470
P40,602,862
28. Investments Income, Investment Expenses and Other Income

Investments income account consists of:
Note
Interest income on:
Gain on sale of AFS financial assets
Dividend income
Gain on sale of loans and receivables
Gain (loss) on sale of investment
properties
Rental income
Gain on sale of financial assets at FVPL
Fair value gain (loss) on financial assets at
FVPL
- 65 -
12
17
17
10
2014
2013
P850,741,883
42,071,270
26,047,992
9,959,960
130,151,547
84,606,304
1,630,000
P699,436,881
37,612,399
18,813,954
10,091,145
244,949,510
73,648,643
68,919,561
(1,424,423)
8,468,069
785,662
12,075,644
6,742,034
548,331
(66,843,706)
73,964,845
P1,227,003,109 P1,105,994,396
Investment expenses account consists of:
Interest expense
Management fee
Foreclosed property
Commission, sales and VAT expenses
Consultancy fee
Others
2014
P244,126,768
55,506,414
16,731,037
6,772,885
1,819,915
12,468,434
P337,425,453
2013
P191,116,989
31,436,217
15,695,810
11,283,229
3,587,273
886,261
P254,005,779
2014
P87,362,360
10,917,857
673,916
P98,954,133
2013
P115,951,118
2,381,821
535,700
P118,868,639
2014
P139,103,437
47,989,416
3,261,630
P190,354,483
2013
P54,994,308
28,119,919
1,088,628
P84,202,855
Other income account consists of:
Variable life/unit-linked
Gain on sale of La Loma Columbary
Gain on sale of property and equipment
29. Service Fees

HMO fees
Policy fees
Cancellation fees
30. Net Insurance Benefits and Claims

Gross benefits and claims paid on insurance contracts consist of:

Accident and health
Maturities and surrenders
Total life insurance contract benefits
and claims paid
2014
P784,810,011
726,992,963
358,049,852
33,478,405
2013
P833,012,542
700,134,362
303,393,990
62,137,633
P1,903,331,231
P1,898,678,527
Reinsurers share of gross insurance contract benefits and claims paid:

Total reinsurers share of life insurance
contract benefits and claims paid
- 66 -
2014
P13,684,589
3,386,778
2013
P18,055,235
8,484,139
P17,071,367
P26,539,374
Changes in life insurance contract liabilities follow:

Accident and health
Foreign Exchange Loss

Accident and health
Foreign exchange loss
Gross Change
in Insurance
Contract
Liabilities
P428,437,475
149,171,220
12,927,305
2,963,691
P593,499,691
Gross Change
in Insurance
Contract
Liabilities
P275,228,017
169,705,823
20,873,262
29,763,813
P495,570,915
- 67 -
2014
Reinsurers
Share of
Change in
Insurance
Contract
Liabilities
(P4,539)
26,457,274
P26,452,735
2013
Reinsurers
Share of Change
in Insurance
Contract
Liabilities
P262,402
P262,402
Net
P428,442,014
122,713,946
12,927,305
2,963,691
P567,046,956
Net
P274,965,615
169,705,823
20,873,262
29,763,813
P495,308,513
31. General and Administrative Expenses

General and administrative expense account consists of:
Note
32
Salaries and wages

Other employee benefits
HMO miscellaneous expenses
Advertising and promotions
Utilities
Rental
35
Provision for impairment losses
12
Depreciation and amortization
17, 18, 19
Taxes and licenses
Donations and contributions
Printing and office supplies
Training and development
Postage and telephone
Entertainment, amusement and recreation
Repairs and maintenance
Transportation and travel
Service fees
Bancassurance expenses
Meeting and conferences
Professional fees
Agency development allowance
Insurance
Directors fees
Medical fees
Condominium dues
Miscellaneous
2014
P164,906,391
126,028,805
77,323,294
62,170,057
60,896,499
58,432,959
55,122,776
32,132,175
25,597,964
23,500,000
19,807,743
18,087,282
17,855,819
17,943,399
16,923,019
15,867,644
16,292,891
12,802,667
11,094,602
5,891,015
3,707,637
3,215,616
1,870,000
1,740,337
1,640,373
64,443,842
P915,294,806
2013
P156,089,735
136,707,546
503,012
62,633,336
56,760,674
53,564,790
46,228,017
28,771,406
13,882,884
3,560,000
19,227,598
18,569,742
17,341,412
16,551,239
13,610,872
14,524,158
11,144,856
12,640,424
8,771,122
4,582,851
5,769,405
3,007,426
2,060,500
1,915,695
2,219,072
59,315,303
P769,953,075
Miscellaneous expenses amounting to P64.44 million and P59.32 million as at

December 31, 2014 and 2013, respectively, pertain to inspection and investigation
expenses, collection fees, referral fees and other expenses.
32. Employee Benefits

The Parent Company has a funded, non contributory, defined benefit plan covering all of
its permanent employees. Contributions and costs are determined in accordance with the
actuarial studies made for the plan. Annual cost is determined using the projected unit
credit method. The Parent Companys latest actuarial valuation date is December 31,
2014. Valuations are obtained on a periodic basis.
The plan entitles a retired employee to receive an annual pension payment. Directors and
executive officers retire at age 60 and are entitled to receive annual payments equal to
seventy percent (70%) of their final salary until the age of 65, at which time their
entitlement falls to fifty percent (50%) of their final salary. Other retired employees are
entitled to receive annual payments equal to 1/60 of final salary for each year of service
that the employee provided.
- 68 -
The plan is registered with the BIR as a tax-qualified plan under Republic Act No. 4917,
as amended. The control and administration of the plan is vested in the Board of
Trustees (BOT). The plans accounting and administrative functions are undertaken by
the Parent Companys Retirement Funds Office.
The following table shows reconciliation from the opening balances to the closing
balances for net pension liability (asset) and its components:
Defined Benefit Obligation
2013
2014
Balance at January 1
Included in profit or
loss
Current service cost
Interest cost (income)
Included in OCI
Remeasurements loss
(gain):
Actuarial loss (gain)
arising from:
Demographic
assumptions
Financial assumptions
Experience adjustment
Return on plan assets
excluding interest
income
Others
Contributions paid by
the employer
Benefits paid
Fair Value of Plan Assets

2013
2014
Net Pension Liability

2013
2014
P512,726,924
P651,722,357
P453,724,810
P467,164,339
P59,002,114
P184,558,018
30,666,620
30,302,161
37,715,403
37,903,433
26,815,136
27,169,748
30,666,620
3,487,025
37,715,403
10,733,685
60,968,781
75,618,836
26,815,136
27,169,748
34,153,645
48,449,088
52,025,798
122,169,087
(61,291,775)
(96,498,110)
27,409,568
-
24,616,230
122,169,087
(22,695,764)
(61,291,775)
(96,498,110)
22,695,764
174,194,885
(157,789,885)
27,409,568
(22,695,764)
146,785,317
(135,094,121)
(36,155,468)
(56,824,384)
40,150,786
(36,155,468)
38,910,871
(56,824,384)
(40,150,786)
-
(38,910,871)
-
(36,155,468)
(56,824,384)
3,995,318
(17,913,513)
(40,150,786)
(38,910,871)
Balance at December 31 P711,735,122
P512,726,924
P511,944,832
P453,724,810
P199,790,290
P59,002,114
The retirement benefit expense under General and administrative expenses in profit or
loss is recognized as follows:
Current service cost

Net interest on the defined benefit
obligation
2014
P30,666,620
2013
P37,715,403
3,487,025
P34,153,645
10,733,685
P48,449,088
The Parent Companys plan assets consist of the following:

Available-for-sale securities:
Equity instruments
Debt instruments
Loans and other receivables
- 69 -
2014
P62,294,448
2013
P49,435,291
263,778,559
183,368,650
2,765,950
(262,775)
P511,944,832
223,571,295
180,353,953
2,526,637
(2,162,366)
P453,724,810
Parent Company expects to contribute P112.02 million to its defined benefit retirement
plan in 2015.
The following were the principal actuarial assumptions at the reporting date:
2014
4.61%
5.00%
Discount rate
Future salary growth
2013
5.91%
5.00%
Assumptions regarding the mortality and disability rates used were based on the 1980
CSO Mortality Table and 1952 Ben-5 Disability Study, respectively.
The weighted-average duration of the defined benefit obligation is 33 years and 32 years
as at December 31, 2014 and 2013, respectively.
Maturity analysis of the benefit payments (in thousands):
Defined benefit obligation
Carrying
Amount
Contractual
Cash Flows
2014
Within
1 Year
Within
1-5 Years
More than
5 Years
P711,735
P7,703,562
P125,371
P90,792
P7,487,400
Carrying
Amount
Contractual
Cash Flows
2013
Within
1 Year
Within
1-5 Years
More than
5 Years
P512,727
P9,176,197
P112,022
P157,786
P8,906,389
Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial
assumptions, holding other assumptions constant, would have affected the defined benefit
obligation by the amounts shown below:
Discount Rate
+100%
(P40,794,098)
Salary Increase Rate
-100%
+100%
P46,270,377
P39,322,153
-100%
(P35,428,698)
Although the analysis does not take account the full distribution of cash flows expected
under the plan, it does provide an approximation of the sensitivity of the assumption
shown.
These defined benefit plan exposes the Parent Company to actuarial risks, such as
longevity risk, interest rate risk, and market (investment) risk.
The BOT reviews the level of funding required for the retirement fund. Such a review
includes the ALM strategy and investment risk management policy. The Parent
Companys ALM objective is to match maturities of the plan assets to the retirement
benefit obligation as they fall due. The Parent Company monitors how the duration and
expected yield of the investments are matching the expected cash outflows arising from
the retirement benefit obligations.
- 70 -
33. Income Tax

The current provision for income tax consists of MCIT, final taxes on interest income on
savings deposits, deposit substitutes and government securities and deferred tax benefits.
The reconciliation of the income tax expense computed at statutory tax rate to the current
income tax expense shown in the separate statements of comprehensive income is as
follows:
2014
P547,564,852
Income before income tax

Statutory income tax
Gain on sale of stock
Fair value gain
Dividend income
Income subjected to final tax at a lower tax rate
Gain on sale of investment properties
Change in unrecognized deferred tax assets
Excess MCIT over RCIT
Others
Effective income tax
164,269,456
(39,281,163)
(22,189,453)
(25,381,891)
(5,879,792)
239,962
(15,579,777)
178,196
(35,186,345)
P21,189,193
2013
P480,990,734
144,297,220
(73,604,138)
20,053,112
(22,094,593)
(5,105,934)
(3,672,339)
133,219
(45,099,000)
P14,907,547
The significant components of the deferred tax assets and liability consist of the deferred
tax effects of the following:
Deferred tax assets on:

Unamortized past service cost
Others
Deferred tax liabilities on:
Reserve for fluctuations of AFS financial assets
Unrealized foreign exchange gain
Others
Net deferred tax liabilities
2014
2013
P28,040,467
59,370,087
13,857,756
P28,040,467
17,700,634
6,965,483
-
(626,794,965)
(629,872,687)
(1,214,078)
(3,879,053)
(P533,697,508) (P574,088,381)
Movements in net deferred tax liabilities are as follow:

2014
P40,390,873
P40,390,873
Amounts charged against equity

Amounts charged against income
- 71 -
2013
(P35,463,634)
(P35,463,634)
The Parent Company did not recognize deferred tax assets on certain temporary
differences as shown below, since management believes that the tax benefit of these
assets will not be realized through income tax deductions in the near future.
2014
P347,877,291
60,000,000
407,877,291
30%
122,363,187
178,195
P122,541,382

NOLCO
Tax rate
MCIT
Total
2013
P287,715,619
62,308,705
330,261,614
30%
99,078,484
P99,078,484
Details of the Companys NOLCO as at December 31, 2014 which are available for
offset against future taxable income are as follow:
Year Incurred
2012
Amount
Applied
P62,308,705
P2,308,705
Expired
P -
Balance
P60,000,000
Expiry Date
December 31, 2015
Transitory provisions of Revenue Regulation No. 16-2008 introduced the Optional

Standard Deduction (OSD) as an alternative deduction for corporations. The Parent
Company used itemized method of deduction for its annual income tax return in 2014
and 2013.
34. Related Party Transactions

Parties are considered related if one party has control, joint control, or significant
influence over the other party in making financial and operating decisions. The key
management personnel of the Parent Company are also considered to be related parties.
The Parent Companys transactions with related parties are as follow:
Category/Transactions
United Fund, Inc.(UFI) - Under
Common Control
Due to centralized administrative
services
Year
2014
2013
Loans and receivables; Payments

due to centralized administrative
services
Note
2014
2013
Cocolife Fixed Income Fund, Inc.

(CFIFI) - Under Common Control
Loans and receivables; Payments
2014
due to centralized administrative
services
2013
2014
2013
Amount
of the
Transaction
P13,197,741
34a
4,167,339
4,222,966
15,664,530
Forward
- 72 -
Outstanding Balance
Due from
Due to
Related
Related
Parties
Parties
P -
P8,044,216
4,984,895
957,539
957,539
Terms and
Conditions
Due and demandable; Noninterest bearing; Unsecured

Due and demandable; Noninterest bearing; Unsecured;
Unimpaired
Unimpaired
670,311
266,261

Unimpaired
2,414,614
1,102,122

Unimpaired
Cocolife Dollar Fund Builder, Inc.

(CDFBI) - Under Common Control
Centralized administrative services 2014
2013
Healthassist - Subsidiary
Investment accounts payable
2014
P60,422
-
34c
2013
Cocolife Asset Management

Company, Inc. (CAMCI) Subsidiary
Allocation of expenses for
centralized personnel and technical
services
2014
2013
34d
2014
P -
P P46,585
3,876,467
9,651,812
1,437,398
5,915,557
2,926,636
2013
1,381,492

Unimpaired
Unimpaired
5,915,558
-

Unimpaired
Cocoplans - Subsidiary
2014
5,516,368
32,557,964
25,666,346
Allocation of expense for

centralized personnel and
-
2013
34e
2014
2013
34e
1,375,250
-
2014
34f
6,402,554
688,161
30 days; Non-interest bearing;

Unsecured; Unimpaired
6,831,449
3,158,152

Unsecured
Unsecured
180 days; Non-interest
bearing; Unsecured;
Unimpaired
technical services
Advances
UCPB GEN - Subsidiary

Allocation of expense for
centralized personnel and technical
services
2013
Premiums written
On demand; non-interest
bearing; Unsecured;
Unimpaired
bearing; Unsecured; Unimpaired
4,604,645
5,979,895
200,511
200,511
2014
3,353,425
5,083,361
2013
4,168,641
4,685,180
Total
2014
P58,324,629
P37,999,770
P22,479,511
Total
2013
P16,915,647
P30,884,159
P37,710,592
1 year; 9%
bearing; Unsecured
Notes:
34a. These pertain to investments that were received and paid by the investors to the
Parent Company that were supposedly paid to UFI and CFIFI.
34b. The Parent Company provides investments in loans to CFIFI and portion of the
interest earned are remitted to the Parent Company.
34c. These pertain to DepEd Participation Investments of Healthassist to the Parent
Company.
34d. These pertain to common expenses initially paid by CAMCI and subsequently
allocated to the Parent Company.
34e. These pertain to common expenses initially paid and subsequently allocated by the
Parent Company.
34f. The Parent Company provides group insurance to the employees of UCPB Gen and
ceded premiums related to accident and health insurance. Other transactions include
billings to cover share in common expenses and lease of office premises by UCPB
GEN in some of the Parent Companys branches.
- 73 -
Compensation of Key Management Personnel

Key management personnel are those persons having authority and responsibility for
planning, directing and controlling the activities of the entity, directly or indirectly,
including any director, whether executive or otherwise, of that entity.
The key management personnel compensation is as follows:
2014
P73,161,547
8,348,360
P81,509,907
Short-term employee benefits

Post employment benefits
2013
P64,758,916
7,387,838
P72,146,754
35. Lease Commitments

The Parent Company has entered into non-cancelable leases with terms of between one to
ten years and payment on a monthly basis, both as lessee and lessor from the date of the
contracts which are renewable under certain terms and conditions. Some of these lease
agreements provide for an escalation in the rental rates ranging from two percent (2%) to
ten percent (10%). None of the leases include contingent rentals and restrictions.
a. Operating Lease Commitments - the Parent Company as Lessee
Future minimum rentals payable under non-cancelable operating leases as at
December 31, 2014 and 2013 follow:
Within one year

After one year but not more than five years
2014
P41,665,443
3,575,819
P45,241,262
2013
P51,605,336
2,580,267
P54,185,603
Rent expense presented under General and administrative expenses amounted to

P58.43 million and P53.56 million as at December 31, 2014 and 2013, respectively.
b. Operating lease commitments - the Parent Company as Lessor
Future minimum rentals receivable under non-cancelable operating leases as at
December 31, 2014 and 2013:
Within one year

After one year but not more than five years
- 74 -
2014
P9,060,833
634,258
P9,695,091
2013
P8,916,456
377,403
P9,293,859
36. Unit-linked Funds

The Parent Company issues unit-linked insurance contracts where payments to
policyholders are linked to internal investment funds set up. The details of these internal
investments funds, which comprise the assets backing the unit-linked liabilities, are
presented in the tables below. The assets, liabilities, income and expenses of these
internal investment funds have been reflected in the appropriate accounts in the separate
Guaranteed Funds
Guaranteed funds offered to unit-linked policyholders are available in one (1) year and
three (3) year maturity periods. Unit linked policyholders are allowed to allocate up to
maximum of ninety percent (90%) of the policys investible funds to any one of these
funds and the remaining portion to any of the unitized funds. The income earned by the
funds is based on fixed interest rates that the Parent Company has declared at the time of
investment. The interest declared by the Parent Company is net of any fees necessary to
manage the funds. In the case of fund withdrawal before the chosen maturity date,
corresponding penalties are charged on the interest earned.
2014
Assets
Accrued income
Liabilities
accrued expenses
Guaranteed interest rates
Dollar
Guaranteed
Fund
Peso
Guaranteed
Fund
Peso Long
Peso Medium Term Guarantee
Term Fund
Fund
P4,864,702
144,194,515
3,050,688
P36,112,269
272,314,305
719,009
P184,860,389
1,358,467,919
838,806
P31,903,616
243,784,643
438,230
P257,740,976
144,194,515
1,874,566,867
5,046,733
P152,109,905
P309,145,583
P1,544,167,114
P276,126,489
P2,281,549,091
P103,976,321
P280,447,318
P1,533,879,832
P253,813,553
P2,172,117,024
284,700
577,072
3,042,039
4,157,355
8,061,166
P104,261,021
P281,024,390
P1,536,921,871
P257,970,908
P2,180,178,190
2.00%
4.50%
5.00%
7.10%
Dollar
Guaranteed
Fund
Peso
Guaranteed
Fund
Peso Medium
Term Fund
Peso Long
Term Guarantee
Fund
Total
P6,479,668
137,714,401
3,254,765
P56,444,220
224,274,022
1,929,860
P201,779,669
828,626,139
1,545,336
P98,286,529
156,336,803
2,333,665
P362,990,086
137,714,401
1,209,236,964
9,063,626
P147,448,834
P282,648,102
P1,031,951,144
P256,956,997
P1,719,005,077
P110,011,504
P258,612,420
P1,023,669,133
P238,580,652
P1,630,873,709
Total
2013
Assets
Accrued income
Liabilities
accrued expenses
Guaranteed interest rates
4,315,389
3,612,973
7,021,707
7,559,837
P102,621,272
(7,390,232)
P262,927,809
P1,027,282,106
P245,602,359
P1,638,433,546
2.00%
5.25%
6.00%
7.10%
- 75 -
Growth Funds
Peso Income and Growth Fund
This is a unitized variable fund available only in conjunction with the 3-year Peso
Medium Term Fund. The performance of the fund is reflected by the Net Assets Value
(NAV) computed at the end of each trading day. The Peso Income and Growth Fund
seeks to maximize interest income, consistent with its policy to preserve capital, through
a diversified portfolio of high-grade bonds and/or evidences of debt of the Philippine
government-owned or controlled corporations, solvent corporations and institutions.
Dollar Bond Fund
This is a unitized variable fund available for dollar investments together with the Dollar
Guaranteed Fund. The fund seeks to generate regular interest income, consistent with its
policy to preserve capital and to maintain liquidity of its investments. The fund is
invested primarily in dollar-denominated fixed-income instruments ranging from
debentures, money market instruments and government securities.
Peso Equity Fund
This is unitized variable fund available for peso investments and may be chosen together
with the Peso Guaranteed Fund and Peso Bond Fund. The fund seeks to maximize
income consistent with its policy to preserve capital and to maintain liquidity of
investments through a diversified portfolio of high-quality listed equity issues-blue chips
and growth stocks listed in the Philippine Stock Exchange.
Peso Fixed Income Fund
This is a unitized variable fund available for peso investments and may be chosen
together with the Peso Guaranteed Fund and Peso Equity Fund. The fund seeks to
generate regular interest income, consistent with its policy to preserve capital and
maintain liquidity of investment through a diversified portfolio of high grade bonds and
evidence of debt of solvent corporations and institutions.
Peso Bond Fund
This is a unitized variable fund aims to provide regular interest income, consistent with
its policy to preserve capital and to maintain liquidity of its investments, through a
diversified portfolio such as Treasury Notes/Bills, Certificates of Indebtedness issued by
the Bangko Sentral ng Pilipinas and other government securities or bonds and other
evidences of indebtedness or obligations, the servicing and repayment of which are fully
guaranteed by the Republic of the Philippines or any of its instrumentalities. Duration of
Peso Bond Fund's investment will be mostly between medium and long-term. Peso Bond
Fund was established in October 2013 but operations only commenced in February 2014.
Assets
Accrued income
Liabilities
Insurance contract
liabilities
accrued expenses
NAV
Dollar Fund
Peso Equity
Fund
Peso Fixed
Income Fund
2014
Peso Income
and Growth
Fund
P6,505,904
12,453,720
414,011
P12,717,045
60,207,344
2,483,807
20,014
P7,396,557
54,689,360
109,140
P20,127,142
169,443,129
119,766
P1,169,282
8,261,315
19,308
P47,915,930
72,661,064
234,877,611
682,239
P19,373,635
P75,428,210
P62,195,057
P189,690,037
P9,449,905
P356,136,844
P22,225,196
P66,374,948
P57,710,883
P186,736,452
P4,394,776
P337,442,255
Peso Bond
Fund*
Total
243,625
986,972
1,464,479
1,829,380
9103
4,533,559
P22,468,821
P67,361,920
P59,175,362
P188,565,832
P4,403,879
P341,975,814
1.4630
1.6208
1.4919
1.1304
1.0012
*Peso Bond Fund started operations on February 2014.
- 76 -
2013
Assets
Cash and cash
equivalents
Accrued income
Liabilities
Insurance contract
liabilities
accrued expenses
NAV
Dollar Fund
Peso Equity
Fund
Peso Fixed
Income Fund
Peso Income
and Growth
Fund
Total
P7,470,787
21,257,651
924,377
414,320
P17,166,177
44,239,234
372,049
35,387
P55,914,660
2,900,134
73,539
P97,351,511
38,177,338
66,822
P177,903,135
68,397,019
39,473,764
590,068
P30,067,135
P61,812,847
P58,888,333
P135,595,671
P286,363,986
P23,777,769
P53,915,909
P50,796,390
P134,098,690
P262,588,758
467,853
345,838
2,738,341
409,620
3,961,652
P24,245,622
P54,261,747
P53,534,731
P134,508,310
P266,550,410
1.3998
1.4118
1.4350
1.1073
37. Life Insurance Coverage of Coconut Farmers

Under a group master policy contract dated March 27, 1978, As Amended, the Parent
Company agreed to provide group whole-life insurance coverage to certain coconut
farmer members of the Philippine Coconut Producers Federation (Program I). This
Group insurance plan shares in the Groups savings in mortality expenses and extra
earnings in investments through policyholders dividends and policy benefits.
Effective April 1, 1985, the insurance coverage of the coconut farmers was converted
from a whole-life insurance plan to a modified extended term insurance. The amount of
insurance and other benefits remained substantially the same, except for cash surrender
and policy loan privileges. Policyholders dividends, policy benefits and the legal policy
reserves maintained under the farmers insurance program are used to sustain, until these
can, the modified extended term insurance coverage of the insured coconut farmers.
On November 5, 1996, the Philippine Coconut Authority (PCA) and the CIIF Companies
signed a memorandum of agreement which will expand the number of farmers covered
under the Insurance Program from existing 0.6 million to 1.5 million farmers
(Program II). The premium payments for the additional farmers will be taken from an
insurance fund to be set up by the CIIF Companies in keeping with their social
responsibility to the coconut industry.
On August 28, 2002, the PCA and CIIF Companies signed a memorandum of agreement
which proposed a further expansion of the insurance program in order to restore the
insurance benefit of the remaining insured coconut farmers under Program I and II from
P5,000 to P10,000 (Program III). Further, under the same program, the PCA also
proposed to extend the same benefit to an additional 2.48 million coconut farmers and
coconut farm workers that were not included under Programs I and II. Accordingly, the
PCA and CIIF companies have agreed in principle to implement Program III as follows:
Phase I
Upgrade the insurance coverage of the existing 1.02 million insured farmers from P5,000
to P10,000 per farmer effective June 12, 2002.
Phase II
Provide an additional 0.85 million coconut farmers and workers with a P10,000 Group
yearly Renewable term Coverage.
- 77 -
Phase III
Yearly renewable term Coverage.
Phase IV
Yearly Renewable Coverage.
38. Subsequent Events

On March 18, 2015, President Benigno S. Aquino III of the Republic of the Philippines
issued Executive Order No. 179 (Providing the Administrative Guidelines for the
Inventory and Privatization of Coco Levy Assets) and No. 180 (Providing the
Administrative Guidelines for the Reconveyance and Utilization of Coco Levy Assets for
the Benefit of the Coconut Farmers and the Development of the Coconut Industry, and
For Other Purposes), together referred to as the EOs.
The EOs mandate the inventory, reconveyance, utilization and privatization of coco levy
assets to ensure that the Coco Levy Fund and Coco Levy Assets will only be utilized for
the benefit of the coconut farmers and the Philippine coconut industry. The EOs define
coco levy funds as all funds created or sourced from the Coconut Levy imposed by the
government, including the Coconut Industry Investment Fund (CIIF) and the Coconut
Consumers Stabilization Fund (CCSF). Coco levy assets meanwhile refer to the money,
assets or properties, whether real or personal, tangible or intangible, wherever situated,
arising from or otherwise funded by or acquired through the use or by means of any of
the coco levy funds, directly or indirectly, including but not limited to shares, rights, and
interests, whether vested, contingent, expectant, choate or inchoate, and any and all fruits,
income, interest, or profits derived from these assets including those acquired in
exchange or substitution thereof.
The said EOs shall take effect on the date of its publication in a newspaper of general
circulation. As at April 29, 2015, the EOs have not been published in any newspapers of
general circulation. The mandate given to the concerned government agencies will have
to be complied with within 60 days from the EOs effectivity date.
39. Reclassification of Accounts

In 2014, the Parent Company reclassified some accounts in the separate statements of
comprehensive income in order to better reflect the nature of the accounts. Accordingly,
the Parent Company also reclassified the comparative figures in 2013.
A summary of the impact of the reclassification to the separate statements of
comprehensive income for the year ended December 31, 2013 are as follow:
General and administrative expense

Other income
Gross benefits and claims paid on
insurance contracts
Policyholders dividends
As previously
reported Reclassified
As restated
P771,410,575 (P1,457,500) P769,953,075
(120,326,139)
1,457,500
(118,868,639)
1,926,059,090
474,241,470
- 78 -
(27,380,562) 1,898,678,528
27,380,562
501,622,032
a. Cost of sales of real estate inventories amounting to P1.46 million in 2013 which was
previously taken up under General and administrative expenses have been
reclassified to gain on sale of La Loma Columbary under Other income account.
b. Policyholders dividends amounting to P27.38 million in 2013 that were previously
taken up under Gross benefits and claims have been reclassified to policyholders
dividends account under Operating and administrative expenses.
The above reclassifications have no significant effect on the information in the separate
statements of financial position and separate statements of comprehensive income,
Accordingly, management did not present separate statements of financial positions at the
beginning of the earliest comparative period.
40. Supplementary Information Required Under Revenue Regulations No. 15-2010 of

Bureau of Internal Revenue
In addition to the disclosures mandated under PFRSs, and such other standards and/or
conventions as may be adopted, companies are required by the BIR to provide in the
notes to the financial statements, certain supplementary information for the taxable year.
The amounts relating to such supplementary information may not necessarily be the same
with those amounts disclosed in the financial statements which were prepared in
accordance with PFRSs. The following are the tax information/disclosures required for
the taxable year ended December 31, 2014:
A. VAT
1. Output VAT
Account title used:
Basis of the Output VAT:
Vatable sales
Exempt sales
Zero rated sales
P18,047,859
P18,047,859
2. Input VAT
Beginning of the year
Current years domestic purchases:
a. Goods for resale/manufacture or further
processing
b. Goods other than for resale or manufacture
c. Capital goods subject to amortization
d. Capital goods not subject to amortization
e. Services lodged under cost of goods sold
f. Services lodged under other accounts
Claims for tax credit/refund and other adjustments
Balance at the end of the year
- 79 -
P -
161,686
P161,686
B. Documentary Stamp Tax

On loan instruments
On shares of stocks
On others (Policies Issued)
P1,036,357
302,310
P1,338,667
C. Withholding Taxes
Tax on compensation and benefits
Creditable withholding taxes
Final withholding taxes
P36,956,328
101,039,126
- s
P137,995,454
D. All Other Taxes (Local and National)

Other taxes paid during the year recognized under
Taxes and licenses account under Cost of Sales &
Operating Expenses
Real estate taxes
License and permit fees
Others
P4,233,667
8,849,843
12,514,454
P25,597,964
E. Tax Contingencies
The Company has no deficiency tax assessment or any tax case, litigation, and/or
prosecution in courts or bodies outside the Bureau of Internal Revenue as at
December 31, 2014.
- 80 -
COVER SHEET
For
AUDITED FINANCIAL STATEMENTS
SEC Registration Number
2 8 7 1 5
Company Name
U N I T E D
C O C O N U T
A S S U R A N C E
L I F E
P L A N T E R S
C O R P O R A T I O N
Principal Office ( No./Street/Barangay/City/Town)Province)

C o c o l
f e
6 8 0 7
A y a
M a k A t
B u i
l
C i
Form Type
l d i n g
A v e n u e
t y
Secondary License Type, If

Applicable
Department requiring the report
A A F S
COMPANY INFORMATION
Company's Email Address
Company's Telephone Number/s
Mobile Number
N/A
812 - 9015
N/A
No. of Stockholders
Annual Meeting
Month/Day
Fiscal Year
Month/Day
April
December 31
CONTACT PERSON INFORMATION

The designated contact person MUST be an Officer of the Corporation
Name of Contact Person
Email Address
Telephone
Number/s
Mobile Number
Atty. Alfredo C. Tumacder
act@cocolife.com
812-9015
09178019168
Contact Person's Address
6807 Ayala Avenue Makati City

Note: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission
within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.

Coco Life Audited Financial Statement 2014

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Coco Life Audited Financial Statement 2014

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UNITED COCONUT PLANTERS LIFE ASSURANCE

R.G. Manabat & Co.

+63 (2) 885 7000

Branches: Subic Cebu Bacolod Iloilo

REPORT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders

PRC-BOA Registration No. 0003, valid until December 31, 2016

Basis for Qualified Opinion

April 29, 2015

R.G. Manabat & Co.

+63 (2) 885 7000

Branches: Subic Cebu Bacolod Iloilo

REPORT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders

PRC-BOA Registration No. 0003, valid until December 31, 2016

Basis for Qualified Opinion

Report on the Supplementary Information Required Under Revenue Regulations

R.G. MANABAT & CO.

April 29, 2015

R.G. Manabat & Co.

+63 (2) 885 7000

Branches: Subic Cebu Bacolod Iloilo

REPORT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders

R.G. MANABAT & CO.

April 29, 2015

PRC-BOA Registration No. 0003, valid until December 31, 2016

R.G. Manabat & Co.

+63 (2) 885 7000

Branches: Subic Cebu Bacolod Iloilo

REPORT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders

R.G. MANABAT & CO.

April 29, 2015

PRC-BOA Registration No. 0003, valid until December 31, 2016

R.G. Manabat & Co.

+63 (2) 885 7000

Branches: Subic Cebu Bacolod Iloilo

REPORT OF INDEPENDENT AUDITORS

The Board of Directors and Stockholders

Reconciliation of Retained Earnings Available for Dividend Declaration

R.G. MANABAT & CO.

April 29, 2015

PRC-BOA Registration No. 0003, valid until December 31, 2016

UNITED COCONUT PLANTERS LIFE ASSURANCE CORPORATION

LIABILITIES AND EQUITY

See Notes to the Separate Financial Statements.

UNITED COCONUT PLANTERS LIFE ASSURANCE CORPORATION

TOTAL COMPREHENSIVE INCOME

See Notes to the Separate Financial Statements.

Item that may be reclassified to profit or loss

UNITED COCONUT PLANTERS LIFE ASSURANCE CORPORATION

Reserve for Net

Balance at December 31, 2014

Balance at January 1, 2013

Total Comprehensive Income

Balance at December 31, 2013

See Notes to the Separate Financial Statements

UNITED COCONUT PLANTERS LIFE ASSURANCE CORPORATION

Years Ended December 31

Net cash flows provided by (used in) operating activities

Years Ended December 31

Net cash flows provided by investing activities

CASH AND CASH EQUIVALENTS AT