Celebrate living fwd.com.ph Stronger You with FWD Annual Report 2020 Cover by Mary B. Tovillo “The Stronger Filipinos” 4 7 13 31 Overview Messages Business Our People, Review Our Values 4 8 14 32 About FWD Message from the Key Business 2020 Senior Chairman of the Highlights Management Team Board 5 10 15 38 About FWD Message from Creating a Multi- Investing in Insurance the President and Channel Elite Our People and Chief Executive Distribution Network Culture Officer 18 42 2020 Agency Our Commitment to Awardees Community Care 22 Products for Customers’ Evolving Needs 23 About the Cover Innovations in The winner of the FWD Annual Report Digital Design Customer Experience Contest is “The Stronger Filipinos” by Mary B. Tovillo. In and Technology her entry, Tovillo explains: “Filipinos from all walks of life have their own struggles, especially in this time of the 26 pandemic, but we manage to persevere and adapt when The FWD Brand in faced with new challenges because of our admirable Action resilience. We are inspired to strive and keep going because we deeply care about others, because we have dreams that we aim to reach, and because we want only the best for our loved ones.” 45 63 146 Corporate Audited Contact Governance Financial Information Statements 46 58 Shareholders A Strong Adherence to 48 Compliance Board of Directors 54 60 Board Committees Proactive Approach to Risk 56 Management Compliance Officer 57 62 Office of the Objective and Corporate Independent Secretary Internal Audit About About 2020 FWD Insurance Milestones FWD Group FWD Insurance February 2020 Maintained our Top 3 spot in the ASEAN Corporate Governance Scorecard for three (3) FWD Group spans 10 markets in Asia, including Hong FWD Life Insurance Corporation (FWD years running Kong SAR and Macau SAR, Thailand, Indonesia, the Insurance) is part of the pan-Asian FWD Group. Philippines, Singapore, Vietnam, Japan, Malaysia, and We launched our commercial operations in Launched the President’s Charity Drive Cambodia, offering life and medical insurance, general September 2014. In just six years of business, through the Plan with Purpose initiative to insurance, employee benefits, Shariah and family we now rank Top 3 and Top 4 in terms of Paid- support Philippine Cancer Society’s cancer takaful products across a number of its markets. Up Capital4 and New Business Annual Premium research and awareness program Equivalent5, respectively. March 2020 Announced FWD COVID-19 Ready, a special coverage for customers diagnosed with COVID-19 Launched our second President Charity Drive initiative to support medical frontline workers FWD Insurance of St. Luke’s Medical Center Foundation April 2020 Announced COVID-19 Assist, an enhanced is #4 for 2020 COVID-19 coverage for our customers, with additional benefit for policyholders who are We moved up to Top 4 Insurer by medical frontline workers new business premiums. July 2020 Launched the FWD Insurance flagship store in Lazada, an e-commerce site August 2020 Received major international wins from the Insurance Asia Awards6 and Global Banking More than & Finance Awards7 for Tapp, our “one-tap 9.8 million insurance” app customers1 September 2020 Launched new Set for Life add-ons, RecoveryPro, HealthPro Lite, and SurePro for Owners, to address our customers’ evolving needs December 2020 Entered the Million Dollar Round Table Launched the FWD Affiliates Program, a More than US$ More than (MDRT) social media referral program that rewards everyone for helping bridge the protection 6,100 62.6 billion 33,000 Top 10 gap in the Philippines employees2 in assets agents for multinational companies (MNCs) Launched Frankie, our WIZ AI conversational 20203 talkbot 6 https://insuranceasia.com/co-written-partner/more-news/ 1 Includes 2.8 million group members 4 www.insurance.gov.ph > Statistics > Life > 2020 > fwd-insurance-wins-again-insurance-asia-awards-2020 2 Includes Group office employees Based on Paid-Up Capital 7 https://www.globalbankingandfinance.com/global- 3 Includes 1,026 MDRT members 5 www.insurance.gov.ph > Statistics > Life > 2020 > banking-finance-awards-2020-award-winners/ Based on New Business Annual Premium Equivalent 4 Messages “We emerged stronger from the most challenging year in our careers.” Li Hao Zhuang, President and CEO 6 ANNUAL REPORT 2020 7 Message from the Chairman of the Board The Philippines witnessed an unprecedented 9.5% to end the year four (4) rungs higher in the rankings contraction in our Gross Domestic Product (GDP). of life insurance companies compared to 2019, an Revenues grew to PhP14.4 billion in 2020, from PhP11 impressive performance which we should all be proud billion in 2019, a significant increase despite the of. Our management made sure that the safety of our prevailing circumstances. Profits dipped slightly from employees, customers, partners, and contractors was PhP352 million in 2019 to PhP337 million in 2020. Total given paramount importance. FWD Insurance was assets increased by PhP8.1 billion to PhP29.2 billion in one of the few life insurance companies that provided 2020, from PhP21.1 billion in 2019, due to the increase protection against the COVID-19 virus. A number of in assets held to cover unit-linked liabilities. Solvency our customers who benefitted from their life insurance and Risk-Based Capital (RBC) ratios were maintained at coverage wrote to us to express their gratitude healthy levels. for having been covered against COVID-19. This is remarkable proof of our unwavering commitment to The year 2020 was an unbelievably devastating year Significant partnerships were also forged in 2020. our customers. for the global economy because of the COVID-19 Our senior management, Our partnership with The Medical City, the largest pandemic. Practically no country was spared from healthcare network in the Philippines, for one, allows To our customers, I wish to thank you for your the huge economic contraction that caused massive agency force, us to offer comprehensive protection solutions such as confidence and trust in FWD Insurance. I assure you that unemployment in many countries around the world. Set for Health, KanGuard, KanLive, and KanMend— all of us are working hard to ensure that your interests Various industries such as hospitality and tourism, bancassurance making insurance more accessible to more Filipinos. are protected and safeguarded. May the Almighty aviation, education, retail, leisure and entertainment, Partnerships like this will undoubtedly contribute to the continue to protect and guide us in all of our endeavors. real estate development, financial services including partner, employees, continued growth and expansion of our footprint in the the insurance industry, and many others were adversely life insurance industry. Before I end this note, I would like to take an impacted. The forced lockdowns imposed by the and customers had to opportunity to celebrate the life of a good colleague national government and local government units Our ongoing partnership with Security Bank and leader, Arthur Lee, who has sadly passed on. Arthur resulted in massive layoffs of personnel, reduced Corporation (SBC) has been mutually beneficial and joined FWD Group in October 2017 and served as EVP, income for many of those who retained their jobs but cope with a difficult has contributed substantially to the growth and quality New Markets & Corporate Governance and Southeast had to work shorter hours, and closure of many small- of our life insurance business. I have no doubt that our Asia Chairman for almost three years. He also served as and medium-sized businesses. environment, but long-term partnership with SBC will become even more FWD Insurance’s non-executive director for three years, important and synergistic in the years ahead. since his appointment in 2018. Arthur was a man of FWD Insurance had to quickly adapt to a new because of the hard intellect and vision. He was always caring and he made environment where most of the employees had to To our management and employees, I wish to reiterate time for anyone who needed it. He will be truly missed. work from home and serve the needs of our customers work, persistence, and the Board of Directors’ congratulatory message through a digital platform. Fortunately for us and our for a remarkable performance in 2020 despite the customers, these digital solutions have long been commitment of all our daunting challenges that confronted the Company. in place in our Company. We were one of the first Our senior management, agency force, bancassurance insurance companies to offer remote selling as well as a stakeholders, FWD partner, employees, and customers had to cope with remote recruitment process through our virtual business a difficult environment, but because of the hard work, Amb. Jose L. Cuisia Jr. opportunity program. Technology and innovation are persistence, and commitment of all our stakeholders, Chairman of the Board deeply rooted in the FWD DNA and this has served us Insurance managed to FWD Insurance managed to perform creditably. We FWD Insurance well during these trying times. perform creditably. achieved a respectable performance that allowed us 8 ANNUAL REPORT 2020 9 • Deepened and expanded our agency and partnerships: We have the most wonderful Top 4 Insurer +43% in premiums strategic partner in SBC that helped us weather Message from through the pandemic. We have deepened our partnership by further integrating our products, the President setting joint analytics teams to better understand in assets in Customer +39% No. 1 Experience* and serve our customers, and helping each other and Chief in our digital transformation journeys. We have also expanded our partnership ecosystem in 2020. Executive We are thrilled to have formed partnerships with The Medical City, Lazada, and MemoXpress, and such as education, inflation, and hospitalization. will continue to do so especially in the digital Officer space. 2. Stronger Team We welcomed a new Board Member, Adrian O’Connor, • Solidified our technology lead: Our digital- who is a highly experienced Chief Financial Officer first thinking and setup helped us stay ahead of and Chief Actuary with a proven track record in our customer needs and competition.