In 1930, equipped with a vision and determination to serve the nation and render insurance protection to the Filipino people, Enrique T. Yuchengco founded China Insurance and Surety Company, Inc. Little did he know that the company he established in Binondo, Manila, would evolve to be the country’s premiere non-life insurance organization in the years to come.
Don Enrique T. Yuchengco was a dynamic leader who gained a reputation as a hard driving executive who made marks in business ventures. Don Enrique noted that there were more than 80 non-life insurance companies in the market. He believed that there was a need for an insurance company that the people could depend on to serve and protect them through fair dealings and speedy settlement of just and valid claims.
Investing Php 147,500 to start his company’s operations in 1930, he and his eight agents slowly moved into the competitive world of insurance amidst resistance from already established firms.
China Insurance grew into one of the major insurance companies of the country that by 1940, its gross premium income rose to more than Php 700 thousand and its total assets reached more than Php 400 thousand while generating a total business of Php 1,116,248.34. Unfortunately, the tide of the times abruptly changed as World War II broke out. Business collapsed and the company’s operations were suspended.
After recovering from the ravages of the war, it resumed operations and buckled down to work. War claims, which were not within the scope of the conditions of the policy, were nevertheless paid ex-gratia.
On February 16, 1949, the same stockholders of China Insurance, headed by Don Enrique, infused fresh capital and formed Malayan Insurance Company, Inc. The new name was conceived in response to the new social atmosphere of building a brown race identity - the Malay race.
Since then, Philippine luminaries in business and public service, at one time or another, served as the company’s Chairman of the Board: Mariano Cuenco - the President of the Philippine Senate; Alfonso Sycip - renown banker and business tycoon; Carlos P. Romulo - President of the United Nations General Assembly; and Alfonso T. Yuchengco - Philippine Ambassador to the People’s Republic of China (1985 to 1987), Japan (1995 to 1998), and the Philippine Permanent Representative to the United Nations (2001 to 2002). In 1953, after Don Enrique passed away, Alfonso T. Yuchengco, an accomplished Certified Public Accountant and a rising figure in the local business sector, assumed full responsibility over Malayan.
Determined to expand the organization, Alfonso T. Yuchengco established a new company, Bankers and Manufacturers Assurance Corporation (BMAC), which was incorporated in September 6, 1955. This formed the nucleus of the Malayan Group of Insurance Companies (MGIC). BMAC maintained the corporate name for 25 years and was eventually changed to Malayan Zurich Insurance Co., Inc. in 1980 resulting from a tie-up with Zurich Insurance Co. of Switzerland. Today Malayan Zurich is known as Bankers Assurance Corporation (BAC) as a result of Zurich Insurance’s exit from the Philippine market. However, Malayan Insurance and BAC remain to be cooperative partners of Zurich Financial Services. As member of the Malayan Group, the BAC is focused on the microinsurance sector as well as the overseas Filipino worker (OFW) market.
On May 12, 1964, another non-life firm, Pan-Malayan Insurance Corporation, was incorporated into the joint venture of Malayan Insurance Company, Inc. (MICO), Continental Insurance Group, and Tokio Marine & Fire Insurance Co., Ltd. However, in February 1997, the joint venture was re-established between MICO and Tokio Marine, under the name Tokio Marine Malayan Insurance Co., Inc. The merger of MICO and Tokio Marine, which took place in September 2008, made Malayan the unbeatable insurance company in the Philippines. The third domestic non-life insurance company that joined the Malayan Group was the First Nationwide Assurance Corporation (FNAC) on June 11, 1965. In 2011, FNAC obtained certification from the Banko Sentral ng Pilipinas (BSP) as bancassurance partner of the Rizal Commercial Banking Corporation. The Malayan Reinsurance Corporation (formerly called Eastern General Reinsurance Corporation) was established on October 17, 1975 and completed the five member companies of the MGIC. This professional reinsurance company, known as Malayan Re, merged with the Universal Reinsurance Company of the Ayala Group on January 30, 2004, and was called Universal Malayan Re (UMRe). In early 2006, the Securities and Exchange Commission approved the merger of UMRe and the National Reinsurance Corp. of the Philippines, utilizing the latter as its official company name.
The machinery for local and global expansion was set. Foreign branches, subsidiaries, affiliates, and agencies were organized. In the home front, regional offices, branches and service offices were opened in Luzon, Visayas, and Mindanao.
When Helen Y. Dee was elected president of MICO in 1983, she spearheaded the firm’s domestic expansion and modernization programs through innovative developments in manpower training and insurance products. She also improved the employees’ technical skills, computerized the underwriting operations and improved customer support services. The company further strengthened its industry leadership through Mrs. Dee’s and Mr. Yuchengco’s efforts.
In 1995, Fidel M. Alfonso, a luminary in the local insurance industry and Yvonne S. Yuchengco, a well-known banker and civic leader, were elected Chairman of the Board and President of MICO, respectively. Through their continued efforts in pursuing MICO’s corporate mission and in strongly supporting programs to fully realize the Company’s vision, Malayan reached new heights in performance and achievements. In early 2001, former Insurance Commissioner Atty. Adelita A. Vergel De Dios, was elected chairman of MICO. Equipped with her experience and expertise in the industry, Atty. Vergel De Dios guided MICO towards maintaining its position as the country’s leading non-life insurance company. In 2008, MICO further consolidated its resources and capabilities for a bigger, stronger company through its merger with Tokio Marine Malayan Insurance Corporation. It was also in this year that Mrs. Helen Y. Dee rejoined MICO as Chairman.
In 2009, Malayan Insurance received an ISO 9001:2000 certification from Certification International U.K. Ltd. This attests to the company’s commitment to adhere to globally accepted quality management standards. Likewise, A.M. Best Co. and Standard & Poor’s, two of the world’s most credible ratings agencies, gave MICO a “generally stable financial strength rating.” A.M. Best affirmed the company’s financial strength rating of B++ (Good) and the issuer credit rating of “bbb,” while S&P gave a rating of BB- Stable, citing Malayan’s strong market position that offsets the volatility of its operating environment. Both agencies recognize MICO’s strong business position as the largest non-life insurance company in the Philippines.
When MICO celebrated its 80th anniversary in 2010, it achieved another milestone in posting Php 5.97 billion in Gross Premium Written (GPW), 44% higher than its next-ranked competitor. It also posted a 36% growth in Net Underwriting Profit or Php 527 million. In the same year, MICO Chairperson Helen Y. Dee represented the Philippines in the 6th International Microinsurance Conference held in Manila, and was a panelist during the discussion on the profitability of microinsurance. Ambassador Alfonso T. Yuchengco was likewise honored with a Lifetime Achievement Award by the Asia Insurance Review and the Review Worldwide Reinsurance Magazine during the 14th Asia Insurance Industry Awards. MICO also successfully transitioned to the ISO 9001-2008 standard in the same year.
The year 2011 proved to be another auspicious year for MICO as it joined the Yuchengco Group of Companies (YGC) in celebrating its Centennial Anniversary. Malayan’s largest branch, MICO Davao rejoiced in reaching its golden jubilee. These highlights were made even sweeter as MICO gained honors and accolades from its industry peers.
In its inauguration in 2011, the Philippine Insurers and Reinsurers (PIRA) Awards cited MICO with the Best in Corporate Governance in recognition of its adherence to sound ethical practices, and the Best in CSR for its unique, sustainable and high-impact CSR. These feats will be repeated in 2012 as the MICO Group hauled four major awards at the 2nd PIRA awards, winning the Best in Corporate Governance and Best in Corporate Social Responsibility awards. Subsidiaries FNAC and BAC also bagged the Best in Corporate Governance awards. Ambassador Alfonso T. Yuchengco was also honored during this event, receiving PIRA’s very first Icon of the Industry Award, complementing the Ambassador’s Outstanding Leadership Award given by the Philippine Constitution Association during the group’s 50th anniversary in 2011. In the same year, the Afro-Asian Insurers and Reinsurers (FAIR) installed the Ambassador as its first FAIR Hall of Fame Awardee in recognition of his invaluable contributions to the industry.
Malayan reached another milestone in 2012 with the development of the Malayan Facebook (FB) Store to jump into the social media bandwagon for insurance sales opportunities. MICO is the first to offer its services through Facebook. In fact, in the entire Asia Pacific region, only MICO has harnessed FB as a selling channel. To enhance the Malayan Group's ability to distribute insurance online, Malayan obtained approval to issue policies via digital format. MICO clients have an option to receive their policy in electronic form (e-policy), as recognized by the Insurance Commission.
MICO launched the Polisy/Asia (P/A) business system in 2012 which ushered the company to a new level of customer servicing. Polisy/Asia is a powerful business suite for all lines of insurance which features end-to-end policy/group management, product configuration, and business analytics capabilities.
When MICO celebrated its 83rd anniversary in 2013, it has raised the ante by officially launching its e-commerce site, the Malayan online store (www.malayanonline.com) to complement its FB store and level-up its product offerings. The Malayan online store is the first insurance shop in the country capable of online transactions, giving Malayan a new distribution channel for its clients with a broader access to excellent products. Malayan also introduced another first in the non-life insurance industry – a mobile app for mobile phone users. The mobile app initially caters to the Motor Car line, where clients can report and file motor car claims via their mobile phones or tablets immediately at the scene of the accident. It is also equipped with a branch and repair shop locator including key emergency contact numbers.
Malayan introduced a process innovation in 2013 called “Issuance of Electronic Confirmation of Cover by Malayan Insurance via e-mail to Cebu Pacific customers”, which bested entries from other YGC companies in the YGC Wow! Minds@Work Best Process Improvement Network (PIN) Project of the Year Award.
In 2014, Malayan developed the Internal Capital Model, as part of Enterprise Risk Management program, to help the company measure the amount of capital needed to cover various risks, to assist in strategic planning, and to optimize reinsurance among others. The development of an Internal Capital Model was initially focused on the Underwriting Risk component. Malayan has also embarked on a total review of the Business Continuity and Resiliency Plan (BCRP), which is spearheaded by the Executive Management Committee. The BCRP includes an updated IT Recovery Plan and crisis communication protocols to ensure the delivery of services during unforeseen events.
2015 was a significant year for Malayan Insurance as it celebrated its 85th year in the non-life insurance business. MICO made further progress when it continued to post satisfactory gains in Gross Premiums Written (GPW) registering P8.4 billion in 2015, showing a growth rate of 14.6% from previous year. This feat marks the 46th consecutive year—since 1970—that Malayan Insurance has been ranked in the number one position, solidifying Malayan Insurance’s reputation as the most trusted non-life insurer in the country. Tokio Marine Division (TMD) also passed the P1 billion mark when it generated GPW amounting to P1.022 billion. Subsidiaries FNAC and BAC have also celebrated its 50th anniversary and 60th anniversary, respectively, in the same year.
MICO marked its 86th founding anniversary in 2016 with a renewed determination to strengthen its presence in the industry as it constantly enhances its products and services, and reaches out to more Filipinos.
In 2016, MICO launched auto.malayan.com, the first of its kind in the country where clients can buy car insurance online, instantly. Clients may simply go online and apply for comprehensive car insurance, get an instant quote, pay the corresponding fees online, and own a car insurance in 20 minutes or less totally hassle-free. Submission of claims can be done online as well.
Malayan has also recognized intensified calls for greater cyber security in Philippine business as it gathered together various industry leaders for a Forum to discuss the importance of cyber security insurance in August 2016. The Forum on Cyber Insurance provided a broad overview on the different risks on a corporation's information technology (IT) systems and database, and the latest preventive measures against cybercrimes. The Forum featured field experts from Munich Re, one of the world's leading reinsurance companies, and Ultimate Risk Solutions, an independent financial modelling and predictive analytics company.
In 2018, Malayan Insurance receives ISO 9001:2015 Certification, further strengthening Malayan’s commitment to its customers. The company has also retained its financial strength rating of B++ (Good) and issuer credit rating of “bbb+” with a stable outlook for both categories, from A.M. Best.
Malayan has also long fostered various philanthropic drives with strong focus on helping indigent communities alleviate their lives. Since 2000, Malayan's Street Education Program (SEP), in partnership with San Lorenzo Ruiz Parish and Childhope Asia Philippines Foundation, aims to integrate street children to formal school by providing basic literacy and numeracy class. The Malayan SEP is one of the longest running street children alternative learning programs in the Philippines, as recognized by the Department of Education.
The Malayan Group also actively participates in nationwide assistance programs of the AY Foundation, the Yuchengco Group’s philanthropic arm, which regularly holds medical and dental missions, and relief operations. Malayan has also shown unrelenting support in other Yuchengco Group projects such as the Buhay Rizal Values Campaign, which is centered on promoting the values espoused by National Hero Dr. Jose P. Rizal, and the YGC Earth Care Program, which seeks to raise the level of awareness on the need for environment protection.
at the forefront of the non-life insurance industry - THE COUNTRY’S NUMBER ONE
NON-LIFE INSURANCE COMPANY. It is proud of its achievements as much as it is
proud of its contributions to the development of the Philippine non-life
insurance industry and to the progress of the Filipino nation. Guided by its
tradition of excellence and its vision of becoming synonymous to non-life
insurance, it has become a towering symbol of Filipino entrepreneurship and