Pre-need firm readies payments of claims

Some plan holders of shuttered pre-need company Prudentialife Plans Inc. (PPI) will receive starting April next year the second tranche of payments of their claims.

Payments will be made using the proceeds from the sale of a property in Taguig City, according to the Insurance Commission.

Insurance Commissioner Emmanuel F. Dooc told reporters on Friday that the 1,100-square meter lot that belonged to PPI was sold through real estate services firm Jones Lang LaSalle Philippines Inc. on Dec. 10 to garment firm Q-Creativs and Imageers Inc. for P402 million. The selling price was 31 percent more than the minimum bid price of P307 million.

At least three companies expressed interest in the lot, Dooc said, adding that the winning bidder, which is chaired by businessman Wilfred Siy, would build its headquarters on the said property.

“This sale was pursuant to the directive of the Insurance Commission for PPI to convert its non-liquid assets into cash,” Dooc said.

The Insurance Commission had placed the pre-need firm under liquidation as it failed to come up with a viable rehabilitation plan after it was placed under receivership due to insolvency, Dooc said.

According to Dooc, the sale of the lot at the corner of 20th Drive and 21st Drive in Bonifacio Global City (BGC) for P45,682.05 per square meter had set a “new record as the last highest sale” in the fast-rising business district in terms of gross floor area (GFA).

The disposition by state-run pension fund Government Service Insurance System of two adjacent lots also in BGC last September generated only P41,666.67 per square meter, Dooc pointed out.

The proceeds from the disposition of this nonliquid asset owned by PPI would be distributed to education planholders by April of next year, the Insurance Commission chief said.

The initial tranche worth about P4 billion—which came from the liquid assets of the trust funds from education, life or memorial, and pension plans—was released starting August last year.