To all our Stakeholders:

Our corporate mission is captured quite succinctly in our commitment to be our customers’ “lifetime insurance friend.”

And indeed, we are proud to count among our customers many who have been with us since our earliest years in 1963, becoming in the process truly members of the Perla family, friends who have been with us for much of their lifetime.

To ensure that we continue to live up to this promise to be there not just for their lifetime but for the lifetime of our growing legion of young customers, we need to ensure that our company remains on strong financial footing, ready and able to face the challenges of the future.

One such challenge will confront us in 2015, when the Philippine financial services industry opens up to competition from much bigger foreign players under the terms of the ASEAN Free Trade Agreement.

We remain fully committed to face the challenges of 2015, and to be one of the few local non-life insurance companies that will survive the bout of consolidation and company closures that will inevitably result from the intensified competition. We have already begun laying the groundwork for our competitive strategy:

     1.To strengthen our capital base and thereby ensure our ability to live up to all the promises that our insurance coverage represents. We increased our paid-up capital by 67% in 2011, from P150 million to P250 million, catapulting us to the elite ranks of the top 15 non-life insurance companies in the Philippines, ranked according to capitalization. We commit to further increase our capital base in line with the New Insurance Code, to a targeted level of P1.3 billion in networth by 2022.

     2.To aggressively grow our customer base while maintaining underwriting discipline, resisting the temptation to take on risks that are underpriced. Collections grew by 31% in 2011, to almost P250 million, thanks to more competitive rates, a more creative range of products and a single-minded focus on service excellence. This growth was achieved without sacrificing quality: loss ratios maintained at below 40%. We expect 2012 revenue growth to be no less phenomenal.

     3.To increase our operational efficiency and improve our margins despite offering lower rates. Net income grew by 71% in 2011, to a record P75 million. We achieved this by intensifying our use of information technology, and by consistently investing in the development of our human resources.

I am confident that Perla Insurance is well poised to face the challenges, and to take advantage of the opportunities posed by the ASEAN Free Trade Agreement.

This confidence springs from our faith in the strong foundation passed on to us by our founder, my father, Mr. Lim Yee Goan. It springs from our faith in the people who make up the company: the Perla Insurance family whose commitment to the company and to our customers never fails to inspire me and to remind me that every insurance policy we issue is a promise to be there for you whenever and wherever you may need us. It springs from our faith in the strength of our organization and the efficiency of the operating systems that we have put in place to transform this family-owned business into a world-class corporation ready to compete with the biggest names in the global insurance business.

I am grateful for the support and continuing commitment of all our stakeholders. Together, we can ensure that Perla Insurance will be there for all our stakeholders far into the future, truly living up to its promise to be “Your Lifetime Insurance Friend.”