According to the pre-need industry data covering the year 2000 compiled by the Actuarial Advisers Inc. (AAI), the double-digit growth is considered significant since the industry reported only a modest 8.96 percent growth in 1999 and 55.65 percent in 1998.
Furthermore, the AAI study noted that the high production level of the pre-need firms in 2000 was achieved by selling almost the same number of plans as they did the previous year, leading to a significant increase in plan size from P49,663 to P58,404.
According to the AAI study, it was during the year 2000 that education plans sales surpassed pension plans (17.86 billion for education plans compared to 17.36 billion for pension plans).
Education plan size averaged P76,007 or 38.8 percent higher than the pension plan average of P54,742.
The AAI study showed that the education plan growth rate of 25.63 percent came close to the 1998 level of 29.70 percent while its average size growth rate of 31.10 percent was even higher than the sum total of the increase from 1997 to 1998 which stood at 12.73 percent.
However, there were less plans sold in 1999 (234,283) compared 1998 (236,884).
The 14.83-percent growth rate registered by pension plans and the increase in the average plan size from P50,920 to P54,742 reflected positive signs of development in the industry.
Life plans, on the other hand, registered a mere five percent sales growth. Average plan size increased by only 7.01 percent.
Among the top 10 pre-need firms, College Assurance Plan (CAP) continued to dominate the industry with market share of 23.59 percent, registering a 44.88 percent increase from 1999 to 2000.
Legacy Plans, however, became the star performer for the year 2000 as it climbed from the number 18 spot in 1999 to number nine in 2000 with a phenomenal increase of 711.64 percent by number of plans sold 412.27 percent by the equivalent amount sold.
Philam Plans has a fragile hold on the number two slot with market share of 12.68 percent followed closely by Prudentialife in number three with 11.67 percent.
Berkley moved down to number four as Pacific Plans and Loyola Plans maintained their number five and six position, respectively despite their lower sales in 2000.
Permanent Plans and PET Plans switched places as the former registered a substantial growth of 30.84 percent to grab number even as the latter registered only a mere 2.61 percent increase to occupy number eight. Although Ayala Plans registered a substantial increase in sales of 40.85 percent, it remained in number 10.
The same AAI study showed that a significant market share gain was registered by CAP at 4.19 percent followed by Legacy at 2.15 percent.
Ten other firms registered modes gains while eight others had zero of negative growths. Thirteen firms had growth rates higher than the industry figure of 19.18 percent.
Legacy entered the top 10 at the expense of Platinum Plans which dropped out to land in number 14. Consolidated Plans grew a little higher than the industry average but its 2000 sales was two notches lower than its 1999 ranking.
Berkley lost its number three position because of its negative growth rate. On pension plans, Prudentialife’s market share gain of 3.05 percent was higher than CAP’s 2.19 percent. A total of 11 firms improved their market shares and 12 registered higher growth rates of 14.83 percent. Philam Plans continued to hold on to number one position with its P2.8-billion sales.
Legacy registered an impressive 150.36-percent increase in pension plans sales which made it a standout among newcomers.