Cocoplans gets fresh fund infusion

MANILA, Philippines - Cocoplans Inc., the pre-need unit of the UCPB Group of Companies Inc., said its parent firm United Coconut Planters Life Assurance Corp. (Cocolife) is infusing fresh equity to boost its trust fund as it reassured the public it remains committed to settle its obligations to planholders.

In a press briefing yesterday, Cocolife president Alfredo Tumacder Jr. said the group has a combined asset base of over P15 billion, enough to cover Cocoplans’ meager trust fund deficiency.

Tumacder said Cocolife will deposit P61 million in cash to Cocoplans’ trust fund tomorrow as a sign of the group’s commitment to planholders. The need to inject additional cash will depend on how Cocoplans would perform this year, he said.

Cocoplans president Caesar T. Michelena said the firm’s trust fund deficiency, which currently stands at P200 million, came about only in 2008 on marked-to-market losses and lower earnings.

He, however, was quick to point out that the company has already submitted to the Securities and Exchange Commission a multi-year capital buildup program, which is currently under review by agency’s Non-Traditional Department.

“We were the first to abide by the SEC directive requiring the submission of a multi-year capital buildup plan,” Michelena said.

The company’s trust fund, amounting to P1.4 billion, comprises investments in government securities, special deposit accounts, equity investments and real estate.

Michelena said less than 10 percent of the firm’s trust fund is invested in stocks while less than three percent is invested in real estate.

He said the company has so far reported a three-percent growth in its trust fund earnings in the first quarter this year due to improving market conditions.

Last year, Cocoplans registered a 67-percent growth in sales.

“We will fulfill all requirements of the SEC. We see to it that all are benefits are paid on time. In fact, checks are prepared and notices are issued one month in advance to make sure that there are no delays,” Michelena said.

He said Cocoplans has paid out a total of P291 million in terms of maturing benefits. For next year alone, the pre-need firm has P57.4 million worth of maturing obligations, P56 million of which are pension plans while P1.29 million are educational plans.

He also assured the public that the company will continue to sell pre-need plans even as some companies decided to wind down operations to just service existing obligations.