Pre-need sales down 5.53% in 1st 7 months

The country’s pre-need industry suffered a 5.53-percent decline in sales for the first seven months of the year as consumer confidence has yet to be restored in the wake of the country’s uncertain economic situation.

Data from the Securities and Exchange Commission (SEC) showed that the number of plans from January to July went down to 293,946 from 311,138 in the same period last year, with education and life plans posting a 9.38-percent and 24.42-percent decline, respectively.

The aggregate contract value of these plans, however, amounted to P22.37 billion, or an increase of 20.32 percent from P18.59 billion last year, primarily due to higher prices.

The trend continued with pension plans accounting for the bulk of total sales, with P12.663 billion compared to last year’s level of P9.234 billion.

Total unit sales for pension plans rose 5.13 percent to 160,971 from 153,114 units from January to July 2003.

The number of education plans sold slid 9.38 percent to 81,606 units sold from 90,055 units last year. The value of their sales however, improved 5.86 percent to P8.037 billion from P7.59 billion in the previous year.

The number of life plans sold declined 24.42 percent to 51, 969 units from 153, 114 units last year. The sales value also went down by 5.36 percent to P1.67 billion from P1.76 billion in the previous year.

Emerging as the number one seller of life plans is St. Peter Life Plans with a total of 14,401 plans sold during the period. It was followed by Prudentiallife Plans Inc. with a total of 10,582 plans sold.

Among issuers of education plans, College Assurance Plans topped bested competition, selling a total of 19,873 plans worth P1.578 billion, followed by Philam Plans Inc. which sold a total of 14,609 units worth P1.954 billion.

On the other hand, Prudential Life Plans was the number one seller of life plans with 19,828 plans sold for the first seven months with a value of P2.208 billion.

The second top seller was TPG Corp. which sold 5,261 plans worth P789.73 million.