‘These guidelines further empower the Commission’s regulated entities to make well-informed investment decisions to ensure the stability and growth of their respective financial assets while safeguarding the interests of their policyholders’
The Insurance Commission (IC) has allowed insurers to expand investment options, including debt securities issued by supranational or multilateral organizations.
The IC shared the new policy under its Circular Letter 2025-09, which was dated 8 April this year and contains the omnibus guidelines on investments.
“The new Circular Letter aims to enhance investment adaptability of insurers, reinsurers, and mutual benefit associations to respond to the dynamic investment market environment,” IC Commissioner Reynaldo Regalado said.
Under the circular, these companies can now enter investment deals without approval from the IC.
However, to ensure minimal financial risks to their business operations, the IC requires such firms to invest in instruments issued by supranational or multilateral organizations that received high credit ratings.
The IC said the debt instrument should have one of these ratings: a minimum credit rating of B by S&P, B2 by Moody’s, B by Fitch, or an equivalent rating from at least two reputable credit rating agencies.
Insurers, reinsurers, and mutual benefit associations will also no longer need the IC’s approval to invest in peso — and foreign currency-denominated equities or debt instruments.
However, the companies should transact with issuers of foreign currency-denominated securities rated B by S&P, B2 by Moody’s, B by Fitch, or an equivalent rating from at least two reputable credit rating agencies.
Meanwhile, insurers and similar firms should check that the issuers of peso-denominated securities have obtained a minimum credit rating of B by CRISP or its equivalent rating by PhilRatings or another credit rating agency accredited by the Securities and Exchange Commission.
“These guidelines further empower the Commission’s regulated entities to make well-informed investment decisions to ensure the stability and growth of their respective financial assets while safeguarding the interests of their policyholders,” Regalado said.
According to the IC, non-life insurers invested assets amounting to P1.86 trillion in the fourth quarter of last year, up 7 percent from the P1.74 trillion invested in the same period in 2023.
The companies posted a total of 94 percent growth in investment income.
Meanwhile, non-life insurers’ total invested assets grew by 4.48 percent to P185 billion from P177.06 billion.
Mutual benefit associations also increased investments by 13 percent to P152.5 billion from P135.4 billion.
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