Philam gets nod on P4.4-B plans
Nov. 27, 2005
By ANA MARIE MACUJA
The Securities and Exchange Commission (SEC) has approved the application of leading pre-need company Philam Plans Inc. to register and sell additional pension and fixed value education plans.
In an en Banc decision held last Thursday, Philam has been allowed to sell additional P4-billion worth of Pangarap pension plans and P400-million worth of fixed value education plans.
Philam Plans first sold pre-need plans in 1989. To date, the company had registered and licensed to sell a total of P67.89 billion worth of pre-need plans. These plans include pension, education and life plans.
Philam Plans is one of the pre-need firms with the highest paid-up capital. It has recently increased its paid-up capital to P700 million, seven times bigger than the P100 million required paid-up capital for pre-need companies offering three types of plans.
Philam Plans now holds the number one position in the sale of education plans which for the longest time was held by College Assurance Plan Philippines Inc. (CAP). CAP lost its license to sell pre-need plans last year.
Meantime, for the pension plan category, Philam Plans ranks second after Prudentialife Plans, Inc. The company also leads among those selling life plans.
Despite a very healthy financial condition, Philam Plans admits the controversy surrounding CAP, Pacific Plans and Platinum Plans also had an adverse effect on the company.
Philam Plans made P9.8 billion in pre-need sales during its last fiscal year, 20 percent up from the sales made during its fiscal year 2003. This year, however, the company would be lucky to have its sales reach P 8 billion, Philam Plans president Jesus G. Hofileña earlier said.
The company however assures its planholders and the public that it remains to be in a financially sound condition and does not liquidity problems unlike other pre-need companies today.
As earlier disclosed, Philam Plans said its trust fund, which secures its future obligations to planholders, is very much liquid and sufficient to service planholder benefits.
Philam Plans’ trust funds as of end-August this year stood at P16.9 billion, translating to a growth of 2.7 percent from the previous year.
In order to counter adverse effects of the controversies surrounding the pre-need industry, the company committed to continue to improve and innovate products along with expanding its distribution system.(AMM)
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