Sales of pre-need firms down 22% in Jan-April

Sales of pre-need companies tumbled by 22.3 percent in the first four months of the year as the investing public continued to wait for more favorable developments before taking any new plans.

Data collated by the Securities and Exchange Commission showed that total sales of the pre-need industry declined to P10.59 billion from P13.63 billion the previous level. The number of units sold likewise went down to 180,747 or 14.72 percent lower than the previous year’s 211,957.

Emil Aquino, head of the SEC’s Non-Traditional Securities Department, said the drop in the number of plans sold was due to the uncertainties brought about by the US-led war in Iraq.

Pension plans once again dominated the sales of pre-need plans with 89,300 units sold or 25.66 percent lower than the year earlier figure of 120,130. The value of these plans amounted to P5.18 billion, a decline of 36.51 percent from the previous year’s P8.16 billion.

The number of education plans sold fell 19.5 percent to 55,691 from 69,180 units a year earlier. The value of their sales likewise dropped to P4.52 billion from P4.81 billion.

The number of life plans sold, on the other hand, increased by 57.88 percent to 35,756 from only 22,647 last year. The contract price of these sales grew by 36.41 percent to P888.89 million from P651.62 million.

College Assurance Plans Inc. was the dominant seller of education plans for the four-month period with a total of 15,133 units sold to the public valued at P699.46 million. Prudentialife Plans Inc. came in second with sales of P1.29 billion or a total of 13,206 units sold.

Among the issuers of life plans, Prudentialife Plans Inc. led the pack with P226.97 million in sales (9,271 units), followed by St. Peter Life Plans Inc. which sold 6,709 units to the public valued at P128.83 million.

Mercantile Plans Inc., on the other hand, topped the list of pension plan issuers with sales of P106.61 million, accounting for 17,464 units sold to the public. Comprehensive Annuity Plans and Pension Corp. came in next with 13,564 units sold valued at P591.84 million.

For its initial collection this year, the pre-need industry reported a decrease of 18 percent to P1.01 billion from P1.24 billion the same period in 2002.

Pre-need companies are firms issuing plans to provide payment for the performance of future services or monetary considerations the time of actual need. Pre-need plans include life, education and pension plans.