Pre-need industry sales down 26.6%

Mirroring poor investor confidence as a result of the controversies now hounding the pre-need industry, total sales of pre-need firms fell 26.6 percent in the first five months of the year.

Based on data culled by the Securities and Exchange Commission’s (SEC) Non-Traditional Securities Department, total sales of pre-need firms fell to P10.64 billion from January to May this year from P14.49 billion a year ago.

The number of plans sold dropped by 18.38 percent to 164,789 from 201,889 with education plans and pension plans posting a 48.6 percent and 37.02 percent decline in sales, respectively.

Sales of life plans, however, grew 87.81 percent to P2.18 billion, equivalent to 66,861 units from only 36,120 units a year ago.

In May alone, sales of pre-need firms plunged 51.91 percent to P1.48 billion from P3.07 billion. The number of plans sold dipped to 24,494 from 40,438 the previous level.

Sales of pension plans fell 35.62 percent to P5.13 billion accounting for a total of 69,194 units.

Sales of education plans, likewise, declined by 38 percent to P3.32 billion from P5.36 billion. The number of education plans dropped by 48.6 percent to 28,734 from 55,898.

The Alba-owned Prudentialife Plans accounted for the big chunk of total sales with sales reaching P1.43 billion for a total of 11,480 plans sold. Philam Plans came in second with sales of P959.95 million, accounting for 8,315 units. On third spot was Lifetime Plans Inc., the now defunct spin-off unit of the Yuchengco-owned Pacific Plans Inc., with sales of P562.3 million for a total of 2,605 units sold.

In terms of the number of pension plans sold, Mercantile Plans Inc. led the list with a total of 15,590 units sold for an aggregate value of P109.24 million.

Among issuers of education plans, Philam Plans was the top seller with sales of P1.46 billion for a total of 10,432 units sold. On second spot was Berkley International Plans Inc. with a total of 6,614 units sold valued at P696,95 million followed by Prudentialife Plans with a total of 2,232 units sold valued at P330.08 million.

Prudentialife also led the pack of life plan issuers with sales of P849.94 million followed by St. Peter Life Plans which registered sales of P749.85 million for 36,434 units.

Initial collections from these plans amounted to P1.12 billion or a decline of 31.02 percent from the previous year’s P940.72 million.

The pre-need industry caters to clients who resort to pre-need plans as saving mechanisms to answer future needs of either themselves or their beneficiaries.

The plans provide for the educational costs of their children; their pension upon retirement; and memorial service upon their demise.