Loyola Plans Consolidated Inc. has until Monday to inform the Insurance Commission (IC) how it can cover at least P238.3 million in trust fund deficiency, if it hopes to avoid being placed under conservatorship.
Insurance Commissioner Emmanuel F. Dooc said Loyola Plans’ top officials had already committed to settle the amount, having learned that the company’s net worth could still cover the deficiency.
As of end-March, the commission has received 95 complaints from Loyola Plans’ policyholders.
The commission decided to give Loyola Plans the benefit of the doubt and ordered the preneed firm to explain within five days why it should not be placed under conservatorship.
The company’s trust fund stood at P1.5 billion. But Loyola Plans needs P1.7 billion to cover its plan holders, Dooc explained.
Based on the company’s end-2014 financial statement, the pension plan was deficient by P120.7 million; the life plan by P66.8 million; and the educational plan by P50.9 million.
According to Dooc, the company has a net worth of P282.9 million, which means it still has real estate and service assets that can be transferred to the trust fund.
“They intend to transfer the assets. We want to do that to allay the fears of plan holders,” Dooc said.
Trustees may liquidate the assets to generate the cash needed to cover the trust fund, the official said.
But if Loyola Plans could not comply, the commission would appoint a conservator, Dooc said.
The company was founded by Senator Gil J. Puyat Sr. in 1968.
The company has stopped selling education and pension plans and has focused on life and memorial plans, Dooc said.