Philam Plans scales down 2005 sales target to P8-B

Philam Plans Inc. is scaling down its sales target for the year to P8 billion due to continued poor investor confidence resulting from the string of controversies plaguing the pre-need industry.

In a press briefing, Philam Plans president and chief executive officer Jesus Hofilena said the company’s sales have been affected by the financial problems of other pre-need firms.

Last year, the company registered total sales of P9.8 billion.

Hofilena said Philam Plans remained robust with its trust fund growing to P15.3 billion as of end-August this year, more than enough to cover obligations to planholders for the next six years.

He said the company’s present trust fund level, the largest and fastest-growing trust fund in the pre-need industry to date, can more than cover for the P9.8 billion programmed benefits for the period 2006 to 2011.

Trust funds refer to the pre-need company’s future obligation to planholders as their plan contracts fall due.

Hofilena said the company’s trust fund is highly liquid with more than 80 percent of it invested in secured government securities and near cash equivalents. Government securities are among the safest and most liquid investments in the country at present since earnings are guaranteed by the government.

He said the company is planning to put up three new branches this year: in Ormoc, Leyte; Dasmariñas, Cavite; and Malolos, Bulacan.

Hofilena said Philam Plans will offer more innovative plans and services this year as it eyes greater participation from overseas Filipino workers. The company intends to launch three new educational plan products and two pension plan products to give investors more choices.

Gaining the number one slot for overall pre-need sales performance in July 2005, Philam Plans captured 22 percent of the total pre-need market. It is the dominant provider of education plans with roughly 39 percent of total year-to-date educational plan sales.