Preneed firms post Q1 loss of P832M

The ailing preneed sector suffered a net loss of P831.54 million in the first quarter, reversing the profit posted last year, the latest Insurance Commission data showed.

The net industry bottom line swung to a loss even as pre-need firms’ total premium income from January to March rose 6.1 percent to P4.09 billion from P3.86 billion a year ago.

The number of plans sold during the first three months increased by a mere 0.06 percent from 183,729 a year ago to 183,837, of which 180,148 were life plans, 3,511 were pension plans and 178 were education plans.

Preliminary Insurance Commission data showed that of the 19 licensed preneed companies, nine posted net losses at the end of the first three months.

On a per company basis, PhilPlans First Inc. posted the biggest net loss of P1.12 billion.

The eight other firms that recorded net losses as of end-March were AMA Plans Inc. (P5.24 million), Financial Freedom Future Planners (P60,000), Ayala Plans Inc. (P13.09 million), Manulife Financial Plans Inc. (P42.11 million), Sunlife Financial Plans (P8.48 million), Cocoplans Inc. (P8.94 million), Loyola Plans Consolidated Inc. (P10.04 million), and Trusteeship Plans Inc. (P260,000).

The 10 pre-need providers that registered profits were the following: Caritas Financial Plans (P1.22 million), Cityplans Inc. (P2.76 million), First Union Plans Inc. (P3.42 million), Paz Memorial Services (P2.05 million), St. Peter Life Plan Inc. (P348.66 million), Himlayang Pilipino Plans Inc. (P8.05 million), Mercantile Care Plans Inc. (P330,000), Provident Plans International Corp. (P4.64 million), Transnational Plans Inc. (P4.42 million) and Eternal Plans Inc. (P1.24 million).

The preneed industry’s total assets during the first quarter grew 1.32 percent year-on-year to P120.64 billion as investment in trust funds inched up 0.48 percent to P101.86 billion.

Total liabilities in the first three months, meanwhile, rose 4.49 percent to P104.78 billion, of which P97.59 billion were preneed reserves, up 4.01 percent from last year.

The sector’s total net worth as of end-March declined 15.62 percent to P15.86 billion even as capital stock increased 0.32 percent to P4.06 billion.