Prudentialife says it will service all existing plans

MANILA, Philippines – Prudentialife Plans Inc. has assured all its planholders that the company would continue to service all existing plans.

In a press briefing yesterday, Prudentialife president Jose Alberto T. Alba said this year, we have plans maturing worth P2 billion, and we have sufficient funds to service them.”

Prudentialife Plans has an existing trust fund worth P12.8 billion held by five trustee banks. They are: Banco de Oro Unibank Inc. (BDO), Bank of the Philippine Islands (BPI), Deutsche Bank AG (Manila branch), ING Bank NV (Manila branch), and the Metropolitan Bank & Trust Co.

Based on its Multi-year Capital and Trust Fund Build-up program submitted to the (SEC) in early February, Prudentialife had a fund deficiency of P3.6 billion. But a deficiency of this size is normal, according to industry sources. It is reported annually and ultimately corrected. “Those with larger deficiencies of over 20 percent of the trust fund are the ones that get their licenses revoked or suspended,” they added.

Meanwhile, Alba said investment results for the first quarter this year have been rosy, a turnaround from versus the negative state last year.

 “On the average, investments have been growing by more than eight percent,” he said.

Investments in BDO grew by four percent from January to March this year versus the full year negative 12 percent in 2008. BPI reported growth of three percent while Deutsche Bank reported an eight-percent expansion of investments.

ING meanwhile reported growth of nine percent this year versus the negative 25 percent last year. After recording a 12- percent drop in funds held for Prudentialife, Metrobank reported a 17-percent expansion by end March.

Investments are divided into fixed income instruments (50-percent), equity market (25 percent), offshore fixed income market (10-percent), and the rest in real estate. – With Jennifer Ann Ambanta