PhilPlans ‘financially viable’ despite net loss booked in the first quarter

PRE-NEED firm PhilPlans First, Inc. (PhilPlans) said it remains financially stable despite recording a loss in its total premium income in the first quarter of this year.

“PhilPlans is financially viable. Its total assets far exceed its liabilities by P4.6 Billion. It can more than adequately serve all of the benefits due all of its plan holders as their policies mature,” PhilPlans Chairman Monico V. Jacob was quoted saying in a statement.

Latest data from the Insurance Commission (IC) showed that on a per company basis, the pre-need firm booked the largest net loss with P1.12 billion at end-March.

Eight other companies that also booked net losses during the period were AMA Plans Inc. (P5.24 million), Financial Freedom Future Planners (P60,000), Ayala Plans Inc. ( P13.09 million), Manulife Financial Plans Inc. ( P42.11 million), Sunlife Financial Plans (P8.48 million), Cocoplans Inc. ( P8.94 million), Loyola Plans Consolidated Inc. (P10.04 million), and Trusteeship Plans Inc. (P260,000).

In contrast, 10 pre-need firms recorded profits during the first three months of the year: Caritas Financial Plans (P1.22 million), Cityplans Inc. (P2.276 million,) First Union Plans, Inc. ( P3.42 million,) Paz Memorial Services ( P2.05 million,) St. Peter Life Plan, Inc. ( P348.66 million,) Himlayang Pilipino Plans, Inc. (P8.05 million,) Mercantile Care Plans, Inc. (P330,000,) Provident Plans international Corp. (P4.64 million,) Transnational Plans, Inc. (P4.42 million) and Eternal Plans, Inc. (P1.24 million.)

Mr. Jacob said the actuarial liability of the fund of PhilPlans is at P33.5 billion. Currently, its total assets stand at P38.1 billion.

IC data also showed pre-need providers registered a net loss of P831.54 million in January to March versus last year’s profit of P314.95 million. The sector’s total premium income saw an uptick of 6.10% to reach P4.1 billion in the first quarter from P3.855 billion in the same period in 2016.

Total assets stood at P120.6 billion by end-March, a slight increase of 1.32% from P119 billion last year, while total net worth came in at a loss amounting to P16 billion, 15.62% down from its profit of P18.792 billion a year ago. —