British life insurance company Pru Life UK has received an award from the Insurance Commission (IC) for ranking first overall among all insurance companies in the Philippines in the 2017 ASEAN Corporate Governance Scorecard (ACGS), an industry evaluation benchmarked against international best practices in corporate governance.
The ACGS is a general scorecard that allows companies to appraise and measure their corporate governance practices against international standards. Through raising the corporate governance standards and practices of ASEAN companies, the scorecard was established in 2015 to help attract more foreign investments to facilitate the region’s financial integration, ultimately leading to long-term sustainability and resilience.
Of 136 insurance companies and mutual benefit associations assessed, Pru Life UK was the only company to have achieved more than 100 points out of the maximum score of 124. Obtaining a total score of 101.57 points, the Company tallied a 14-point increase from 2016, as well as recorded increases in nearly all categories.
Companies are evaluated in the ACGS based on the five core principles of corporate governance designed by the Organization for Economic Cooperation and Development, including the Rights of Shareholders, Equitable Treatment of Shareholders, Role of Stakeholders in Corporate Governance, Disclosure and Transparency, and Responsibilities of the Board.
Among these criteria, Pru Life UK yielded perfect scores on the Equitable Treatment of Shareholders and the Role of Stakeholders. The Company received significant bonus points for having an all-Independent Nomination Committee in place, and was also lauded for appointing a professional search firm for recruiting candidates to join the Board.
Pru Life UK President and Chief Executive Officer Antonio De Rosas said, “This recognition validates the leading position of the brand and operations that Pru Life UK and our parent company Prudential plc uphold. Corporate governance is the corner stone of our sustainable development, and we are committed to continuously providing the highest standard of management of the trust provided to us by our stakeholders – from our employees and agents to our clients and the public.”
The ACGS was adopted by the Philippine insurance industry to enhance the competitiveness of the industry in the region, improve public perception towards the industry, and increase the industry’s penetration rate. The IC prescribed the assessment, enjoining covered companies to publicly disclose the necessary information and supporting documents in their company websites.