Investments last year registered one of the lowest in terms of peso-denominated products while euro-denominated investment products gained more followers.
Records from the Insurance Commission (IC) of partial investments indicate that insurers last year made peso investments worth a mere P3.233 billion in various government and private sector products. In 2002, peso-denominated investments nearly hit P10 billion. In 2001, it was P14.47 billion and the year before that P13.15 billion.
In stark contrast, foreign currency-denominated investments increased tremendously. US dollar-denominated investments reached $126.6 million while euro-denominated increased to 4.2 million euros.
Biggest investments in foreign currency-denominated products were last recorded in 2000 amounting to $134 million while it slightly decreased to $62.7 million in 2001.
Members of the Yuchengco Group of Companies (YGC) and First Nationwide Assurance Corp. made the 2.25-million euro investments last year. Malayan Insurance Co. made a two-million euro investment in ROP Bonds while Malayan Reinsurance Corp., Malayan Zurich Insurance Corp., and First Nationwide Assurance each made investments worth 750,000 euros.
Some of the dollar-denominated investment instruments that attracted a lot of attention were: the ROP nine-percent global bond due 2013; ROPs 09, 13, 14, 16, 19, 24 and 25; the ROP 2009 Eurobond; ROP 2013 Global/Eurobond; Treasury Bills issued by the US government; five-year US Dollar bond issue of the Ayala Corp.-International Finance Ltd.; BSP 27-dollar denominated bonds; RP Interest Reduction Bond Series 2008; and, US Government Bonds.
There were also dollar-denominated investment instruments issued by the private sector.
Among them were: credit linked notes of HSBC; Metrobank Tier 2 Bonds; investment in 5.125-percent accumulator inverse floater US dollar deposit issued by HSBC; Banco de Oro Universal Bank senior notes; JG Summit Holdings Phils. Ltd. five-year eurobond; Equitable PCI Bank dollar subordinated notes; Philam Dollar Bond Fund; dollar bonds issued by Subic Power Corp. and AC International Finance Ltd.