GENERAL MANAGER’S CORNER

46^th NATIONAL REPRESENTATIVE ASSEMBLY

THE GENERAL MANAGER’S REPORT
Forest Crest Nature Hotel and Resort

Nasugbu, Batangas

13 December 2025

 Distinguished guests and members of the 46^th National Representative Assembly (NRA) of the Philippine Public School Teachers Association (PPSTA), a very pleasant afternoon!

At the outset, I wish to take this opportunity to express my heartfelt gratitude for the trust and confidence reposed in me by the President and the National Board of Trustees as the duly designated General Manager of the Philippine Public School Teachers Association, a position which I hold concurrently with my being a PPSTA Trustee representing Region 11/Davao Region.

As the General Manager, I stand before you today taking on the duty incumbent upon me as such, that is, to present PPSTA’s Statement of Financial Affairs based on the audited financial statement as of December 31, 2024 with comparative figures for four (4) years back. In addition, I will also touch on the interim financial report for this year. To clarify, the audited financial statement for 2025 will only be available after the audit examination by an external auditor which can only start the job after the close of the current fiscal year.

As to PPSTA’s total assets, from P 7.87 B in 2020, the figure ballooned to             P 9.65 B as of the end of December last year, an increase of almost P 2 B. The two major components of our assets are guaranty fund and investments at        P 2.53 B and the biggest at P 4.43 B are our loan receivables. In the interim financial report, our total assets as of October 31, 2025 increased to P 10.21 B.

PPSTA’s total liabilities as of December 2024 stood at P 5.29 B which is higher by P 120 M than the figure registered as of the same cut-off in 2023 in the amount of P 5.17 B. A large chunk of our liability is for our legal reserves amounting to P 4.77 B. Claims and retirement benefit payables stood at               P 489 M while retirement benefit obligation registered the figure of P 34 M. Our

total liabilities based on our interim financial report as of October 31, 2025 amounted to 5.25 B, higher by P 72 M as compared to the figures registered as of the same cut-off in 2024.

Members’ Equity or the excess of total assets against total liabilities rose from P 3.97 B in 2023 to P 4.36 B in 2024. The continuous increase in members’ equity since 2020 is indicative of PPSTA’s good business and financial management despite some global economic and fiscal setbacks through the years.

PPSTA’s revenues are derived from insurance/policy premia, interest from loan receivables, investments and building rentals. At the end of 2024, PPSTA generated a total of P 1.08 B revenues which is P 20 M higher than the total revenues as of end of 2023 at P 1.06 B. In 2020 and 2021, we failed to hit that Php1 B mark in revenues but this should be acceptable considering that these are peak years of the covid pandemic. As of October 31, 2025, our total revenues amounted to P 961 M.

While it is good to note that our revenues continue to increase for the last two (2) years, I wish to invite special attention to the dwindling figures of our premium income which indicates our lagging membership portfolio. The Board and the Management have put in place several worthwhile membership generation initiatives and we need your help in carrying them out. Let us not forget that our PPSTA thrives by the number. The greater our number, the greater the Association. Our objective is to have our mutual benefit programs stand on their own independent of our loan operations.

For our total expenses in 2024 composed of benefit payments and operating as well as administrative costs, we registered the amount of P 649 M, P 491 M of which were spent for benefit payments while P 158 M were spent for operating and administrative expenses. As of October 31, 2025, we registered total expenses of P 441 M.

Compared with the previous years where we concentrated on strengthening our financial portfolio, our increased expense is mainly attributed to our aggressive implementation of programs, projects and activities that will benefit our local chapters and the general membership such as the annual holding of the NRA, strengthened representation and participation in international teachers’ events, improvement of our computer infrastructures, and the likes.

Going further, our net income before legal reserves was recorded at P 433 M in 2024 indicating a decrease of P 1 M as compared to the 2023 figure. This decrease is attributed to a lower premium collection due to decreasing membership.

Ladies and gentlemen, in insurance companies, we have the so-called RISK-BASED CAPITAL (RBC) RATIO REQUIREMENT. It is the capital required to be held appropriately to the risks that an insurance company is exposed to while the RBC Ratio is equal to the company’s Total Available Capital over the RBC Requirement. You see, the mandated minimum RBC Ratio by the Insurance Commission (IC) is only 125% but with our shared efforts and our solid initiatives, our RBC Ratio as of IC’s latest audit stands at an imposing figure of 611% which is almost five times the minimum requires set by our regulator.

For this, let us all give ourselves that warmest applause.

Thank you very much and mabuhay ang PPSTA at ang Gurong Pilipino!