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Brief History of the Corporation
Churchill Financial Management Inc. came into being in the midst of unprecedented challenges the world has ever faced. The infamous September 11, 2000 attack on the World Trade Center has brought havoc to the global economy, and one of the most affected economic sectors was the Insurance industry. The great loss experience, particularly in North America and Western Europe, has resulted to a dramatic rise in premium rates for all classes of risks and the inevitable imposition of stiffer conditions in risk acceptances by providers of reinsurance capacities. Consequently, this scenario has further resulted to a great reduction in the worldwide general reinsurance capacity, which, on the other hand, created an opportunity for other players in the least affected areas to participate in the international reinsurance business.
Mr. Rey F. Santos, who has been frequenting the London insurance market to arrange reinsurance facilities for his erstwhile Company, had on several occasions met with Mr. James McGriskin, Chairman & President of CK Re Limited. Mr. McGriskin has presented a genuine idea and convinced Mr. Santos to lead the organization and creation of a reinsurance capacity by way of pooling the resources of Philippine-based insurance companies while the timing is right. Once the reinsurance capacity is formed, it will then be promoted as an alternative reinsurance capacity in the international market -- a fruitful opportunity that would certainly give local insurance companies international exposures, and at the same time broaden the scope of their premium generating activities and bring in potential premium revenues in hard currencies. Thus, the concept of creating a “Filipino Reinsurance Pool” came into being.
Seizing the moment, Mr. Santos gathered some of his close friends of impeccable integrity and organized a management company that will initiate the formation of the reinsurance pool. The concept was a plain and simple undertaking of creating a meaningful reinsurance capacity that can be traded in the international reinsurance market. It is envisioned that the new company will act as the administrator of the Pool whose main function is to manage its day-to-day business activities with the view of protecting the interests of each and every Pool Member. Ergo, the birth of CHURCHILL Financial Management Inc (CFMI).
On April 25, 2002, CFMI received the approval of its charter from the Securities and Exchange Commission. A briefing on the formation of the Reinsurance Pool was conducted and held at the Mandarin Oriental Hotel in the City of Makati. In attendance were representatives from 24 local Insurance Companies. Mr. McGriskin unselfishly shared his experience in the reinsurance broking business and explained lengthily the manner by which the local Pool may conduct profitable business, while Mr. Santos presented the conceptual framework of the “Filipino Reinsurance Pool” to the enlightenment of the participants. The successful briefing led to the firm commitment and subscription of a good number of initial Pool Members.
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