Ayala Plans trust assets hit P2.5B

Ayala Plans, the pre-need company of the Bank of the Philippine Islands (BPI) has reported that its trust fund reserves amounted to P2.495 billion as of end of 2004.

The P2.495-billion trust fund favorably supports the company’s actuarial reserve liabilities (ARL) amounting to P2.448 billion. That means Ayala Plans has more than enough, or an excess of P47 million, to pay all the claims of its existing planholders.

"Our trust fund is highly liquid," Ayala Plans president Emilio De Quiros Jr. said in a statement.

The investment portfolio is invested in fixed income funds that can be withdrawn anytime to ensure liquidity at the time the planholders wish or need to avail of their benefits. The bulk of the trust fund is invested in government securities but no investments in real estate properties.

Asset base grew to P4.536 billion from only P26.724 million when the company started 10 years ago. Paid-up capital stands at P550 million, higher than the required P100-million paid-up capitalization for pre-need companies with a three-product line offering.

Ayala Plans since its inception, offers only fixed value plans, where cash benefits is fixed at some predetermined maturity date. This makes it easier for Ayala Plans to manage its investments against its future cash liabilities.

As a BPI pre-need company, Ayala Plans has fully complied with regulatory requirements of various governing bodies.

It has more than complied with the Securities and Exchange Commissions (SEC) requirements on (a) minimum capitalization of P100 million (versus actual of P 550 million); (b) trust fund requirements; (c) calculation of the actuarial reserve liabilities;

(d) insurance premium reserves; and (e) deferred commissions which the company has taken-up in full in 2004.

Ayala Plans is also the first among pre-need companies to implement Anti-Money Laundering Act (AMLA) rules and regulations as required by the Bangko Sentral ng Pilipinas.