Pre-need clients hit Yuchengco plan
Philippine Daily Inquirer
Oct. 7, 2008
MANILA, Philippines—Plan holders of the Yuchengco group’s pre-need firm Pacific Plans Inc., which filed for court-assisted rehabilitation in 2005, are disturbed by the group’s plan to bid for Philippine American Life and General Insurance Corp. (Philamlife).
Philamlife, the country’s biggest insurance company, is one of the assets that the crisis-struck US-based insurance giant American International Group plans to sell.
In a phone interview, Philip Piccio, president of the People Enabling Parents (PEP) Coalition, a group of clients of troubled pre-need plan companies, said of the Yuchengco group: “They have been saying they have no money to give to plan holders. They said it [Pacific Plans funds] has been locked in and invested in dollar-denominated Napocor [National Power Corp.] bonds. And now they have the money to buy an insurance company for profit?”
Piccio said the Yuchengco group’s interest in acquiring Philamlife “is the ultimate proof that they are liquid.”
He said he had paid P80,000 from 1988 to 1992 for a college education plan for his daughter for use in 2006. He said that after Pacific Plans declared it could not pay up, he had to put his daughter through college himself.
Another Pacific Plans client, Rigoberto Marfori, said he had invested in six types of education plans for his three children — from grade school through to college — from hard-earned savings, because he believed in the Yuchengco name.
The Yuchengco group also has major interests in insurance and banking.
Marfori said he opted to buy for education plans instead of life insurance because he had confidence in Pacific Plans. He said he completed payments for the plans in 1995 but later was dismayed when two of his children could not fully avail themselves of their education plans.
“Can they afford to buy Philamlife?” Marfori said of the Yuchengco group. “After all they couldn’t afford to pay us plan holders.”
Spokespersons of Pacific Plans could not be reached for comment as of press time. Elizabeth Sanchez-Lacson; edited by INQUIRER.net
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