{"id":18648,"date":"2026-06-10T05:00:00","date_gmt":"2026-06-10T03:00:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=0195baddba6f59d6569df8c8cc71ac8d"},"modified":"2026-06-10T05:00:00","modified_gmt":"2026-06-10T03:00:00","slug":"bests-commentary-mindanao-earthquake-expected-to-impact-philippine-insurers-results-in-second-half-2026","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=18648","title":{"rendered":"Best\u2019s Commentary: Mindanao Earthquake Expected to Impact Philippine Insurers\u2019 Results in Second-Half 2026"},"content":{"rendered":"

SINGAPORE--(BUSINESS WIRE)--#insurance<\/a>--Due to the catastrophe protection gap in the Philippines, insured losses from damage caused by a recent 7.8-magnitude earthquake in the Mindanao region are expected to be limited and a small fraction of total economic damage, according to a new AM Best<\/b> commentary.<\/p><\/a><\/a>

\nThe Best\u2019s Commentary<\/i>, \u201cMindanao Earthquake Expected to Impact Philippine Insurers\u2019 Results in Second-Half 2026,\u201d notes that while the full scope of insured losses remains subject to ongoing assessments and is not yet quantified, AM Best expects that the domestic non-life insurance market will absorb the primary layer of exposure through a risk-sharing programme involving direct policies and the Philippine Catastrophe Insurance Facility (PCIF), which was established to pool domestic catastrophe risk.<\/p>

\nIn addition, the commentary notes that insurers in the Philippines are dependent on global reinsurance market for transferring extreme earthquake risks; consequently, international reinsurers are expected to absorb a share of the overall insured losses. Although the total is expected to be low, the event highlights primary-reinsurance market dynamics. \u201cAn increase in net retention of catastrophe risks in recent years by primary Philippine insurers is a strategic response to balance high reinsurance costs with profitability targets. Consequently, this shift has heightened sensitivity to climate risks and exposed inaccuracies in traditional risk models due to the inherent uncertainty associated with climate change, could lead to elevated underwriting volatility,\u201d said Susan Tan, senior financial analyst, AM Best.<\/p>

\nWhile gross premiums written have been consistently rising in recent years, according to the commentary, so has the average combined ratio. Claims volatility, together with higher administrative costs, may offset premium gains and impact overall earnings.<\/p>

\n\u201cThe earthquake and the difference in insured and economic losses makes the case for disaster financing for the region to build up resilience to such events. The event underscores the importance of catastrophe risk management for insurers - a greater risk for insurers would be if an event happens in one of the more commercial centers in the country, such as Manila,\u201d said Victoria Ohorodnyk, senior director, analytics, AM Best.<\/p>

\nTo access the full copy of this special report, please visit http:\/\/www3.ambest.com\/bestweek\/purchase.asp?record_code=365609<\/a>.<\/p>

\nAM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <\/b>www.ambest.com<\/b><\/a>.<\/b><\/p>

\nCopyright \u00a9 2026 by A.M. Best Rating Services, Inc. and\/or its affiliates. ALL RIGHTS RESERVED.<\/b><\/p> Contacts<\/b>

\nVictoria Ohorodnyk<\/b>Senior Director, Analytics<\/b>+65 6303 5020<\/b>victoria.ohorodnyk@ambest.com<\/a>\nSusan Tan<\/b>Senior Financial Analyst<\/b>+65 6303 5023<\/b>susan.tan@ambest.com<\/a>\nChristopher Sharkey<\/b>Associate Director, Public Relations<\/b>+1 908 882 2310<\/b>christopher.sharkey@ambest.com<\/a>\nCynthia Ang<\/b>Senior Industry Research Analyst<\/b>+65 6303 5026<\/b>cynthia.ang@ambest.com<\/a><\/p>","protected":false},"excerpt":{"rendered":"

SINGAPORE–(BUSINESS WIRE)–#insurance–Due to the catastrophe protection gap in the Philippines, insured losses from damage caused by a recent 7.8-magnitude earthquake in the Mindanao region are expected to be limited and a small fraction of total eco…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18648","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/18648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18648"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/18648\/revisions"}],"predecessor-version":[{"id":18649,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/18648\/revisions\/18649"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}